What does 'Rent Expense' include for a My Salon Suite franchise?

According to My Salon Suite's 2025 Franchise Disclosure Document, 'Rent Expense' includes the base rent plus NNN (Net, Net, Net) expenses, or CAM (Common Area Maintenance) expenses paid to the landlord. This definition is important for prospective franchisees to understand because rent is a significant operating expense. Knowing exactly what is included in this category allows for more accurate financial planning and comparison against the performance of existing My Salon Suite locations.

Specifically, when reviewing the average P&L for all 244 reporting My Salon Suite Franchised Businesses, the rent expense averaged $148,251, representing 32.5% of gross revenue. For the top quartile of locations, the average rent expense was $125,841, constituting 23.5% of gross revenue. These figures highlight the variability in rent expenses depending on location and performance.

Understanding the components of rent expense is crucial for assessing the financial viability of a My Salon Suite franchise. Franchisees should carefully evaluate lease agreements and understand all associated costs, including base rent, NNN expenses, and CAM fees, to accurately project their operating expenses and potential profitability. Consulting with financial and legal advisors is recommended to fully comprehend these costs and their impact on the business.