factual

Can My Salon Suite reinstate the Brand Building Fund if it is terminated?

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

Although the Brand Building Fund is intended to be of perpetual duration, Franchisor may terminate the Brand Building Fund.

The Brand Building Fund will not be terminated, however, until all moniesin theBrandBuilding Fund have been expended for advertising or promotional purposes or returned to contributing respective contributions.

  • (4) If Franchisor elects to terminate the Brand Building Fund, Franchisor may, in its sole discretion, reinstate the Brand Building Fund at any time.

If Franchisor chooses to reinstate the Brand Building Fund, the reinstated Brand Building Fund shall be operated as described herein.

Source: Item 23 — RECEIPTS (FDD pages 95–230)

What This Means (2025 FDD)

According to My Salon Suite's 2025 Franchise Disclosure Document, My Salon Suite has the discretion to reinstate the Brand Building Fund at any time if it elects to terminate it. If My Salon Suite chooses to reinstate the Brand Building Fund, it will be operated as described in the franchise agreement.

This clause provides My Salon Suite with flexibility in managing the Brand Building Fund. While the fund is intended to be perpetual, My Salon Suite retains the right to discontinue it and, if circumstances warrant, bring it back into operation. This could be beneficial if My Salon Suite determines that a different marketing approach is more effective or if economic conditions necessitate a temporary suspension of the fund.

For a prospective franchisee, this means that the Brand Building Fund, which contributes to system-wide marketing, is not guaranteed to be a permanent feature. However, any termination of the fund must be preceded by the expenditure of all existing monies for advertising or promotional purposes, or the funds must be returned to the franchisees who contributed. Franchisees should monitor the Brand Building Fund's performance and expenditures through the annual statement of operations, which is available upon written request.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.