For what purpose is the Brand Building Fund contribution used by My Salon Suite?
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 Brand Building Fund contribution is used to promote and build the My Salon Suite franchise brand. Franchisees are currently required to contribute a minimum of $200 per month, but My Salon Suite has the right to increase this contribution up to 2% of the franchisee's monthly Gross Revenues.
The Brand Building Fund is a common practice in franchising, allowing the franchisor to pool resources from multiple franchisees to conduct large-scale marketing campaigns that benefit the entire system. These campaigns can include national advertising, website development, social media marketing, and other initiatives designed to increase brand awareness and attract customers to individual franchise locations.
It is important for prospective My Salon Suite franchisees to understand that while the Brand Building Fund is intended to benefit all franchisees, the franchisor has discretion over how the funds are spent. Franchisees typically do not have direct control over the marketing strategies or specific campaigns funded by the Brand Building Fund. Franchisees should inquire about the franchisor's marketing plan and how the Brand Building Fund has been used in the past to assess whether the franchisor's marketing efforts align with their business goals.
Additionally, the FDD mentions an "Unauthorized Advertising Fee" of $500 per occurrence, payable to My Salon Suite or the Brand Building Fund if a franchisee uses unauthorized advertising in violation of the Franchise Agreement. This highlights the importance of adhering to My Salon Suite's marketing guidelines and obtaining approval for any advertising materials used to promote the franchise.