Does My Salon Suite provide an itemized breakdown of how the Brand Building Fund is spent?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | If you are a new Center or a Conversion Center you will pay 2.75% of Gross Revenues for the first 6 months. Beginning the 7 th month through the 12 th month you will pay 5.5% of Gross Revenues for . Beginning the 13th month after your Franchised Business opens through the end of the term of the Franchise Agreement, you will pay the greater of $1,000 or 5.5% of Gross Revenues. | On or before | The "Royalty Fee" is based on "Gross Revenues" during the previous month. The reduction in the Royalty Fee for the first 6 months is not applicable to the purchase of a Resale Center. |
| the 10th day of | |||
| each month | |||
| Brand Building Fund Contribution | Currently a minimum of $200 per month. We may increase this up to 2% of your monthly Gross Revenues. | Same as | This contribution will be used for a "Brand Building Fund" for our use in promoting and building our My Salon Suite franchise brand. |
| Royalty Fee. | |||
| Technology Fee | Then-current fee (currently $170 per month for a Franchised Business | Same as | We may charge you a monthly fee for any custom or proprietary software for use in your Franchised Business. |
| Royalty Fee | |||
| Grand Opening | Currently a minimum of $15,000. | Upon demand | This fee is used to promote and advertise the grand opening of your Franchised Business. |
Source: Item 5 — Initial Fees (FDD pages 18–28)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the FDD does not provide an itemized breakdown of how the Brand Building Fund is spent. However, it does state that the Brand Building Fund contributions will be used by My Salon Suite to promote and build the My Salon Suite franchise brand.
Prospective franchisees should note that while the FDD specifies the current minimum contribution to the Brand Building Fund is $200 per month, My Salon Suite retains the right to increase this contribution up to 2% of the franchisee's monthly Gross Revenues. This means a franchisee's contribution could increase substantially as their revenue grows. The FDD also mentions an Unauthorized Advertising Fee of $500 per occurrence, payable to My Salon Suite or the Brand Building Fund if unauthorized advertising is used.
While the FDD does not offer a detailed breakdown, it's important for potential franchisees to understand how these funds are utilized. Franchisees should consider asking My Salon Suite for more detailed information on how the Brand Building Fund is managed, what specific marketing activities it supports, and whether franchisees receive any reports on the fund's expenditures. Understanding the allocation of these funds can help franchisees assess the value they receive from their contributions and ensure transparency in the franchise system.