What is the purpose of the Grand Opening fee for a My Salon Suite franchise?
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 Franchise |
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 Grand Opening Advertisement fee is used to promote and advertise the grand opening of your franchised business. The minimum amount for this fee is currently $15,000. This fee is due upon demand.
The FDD specifies that franchisees are required to spend at least $15,000 on advertising and promoting the grand opening of their My Salon Suite location. However, franchisees have the option to spend more than this minimum amount. This initial investment in marketing is intended to create awareness and attract customers to the new My Salon Suite location when it first opens.
Grand opening advertising is a common practice in franchising, as a strong launch can significantly impact the long-term success of a new location. The $15,000 minimum suggests that My Salon Suite places importance on a well-executed grand opening strategy. Franchisees should work closely with My Salon Suite to develop an effective grand opening marketing plan that maximizes the impact of this investment.