What are 'Required Purchases' for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
The products or services we require you to purchase or lease from an Approved Vendor or purchase or lease in accordance with our standards and specifications, are referred to collectively as your "Required Purchases." We estimate that your Required Purchases will account for approximately 25.1% to 28.9% of your total costs incurred in establishing your Franchised Business, and approximately 31.1% to 35.8% of your ongoing costs to operate your Franchised Business after the initial start-up phase.
You must use the computer hardware and software, including the point-of-sale system that we periodically designate to operate your Franchised Business. You must obtain the computer hardware, software licenses, maintenance and support services, and other related services that meet our specifications from the vendors we specify. You must obtain, before beginning construction and maintain throughout the term of the Franchise Agreement, comprehensive general liability with primary and excess limits of not less than $2,000,000, motor vehicle liability with primary and excess limits of not less than $1,000,000, and professional liability insurance with primary and excess limits of not less than $1,000,000 to $2,000,000. Please consult with your insurance agent regarding the appropriate amount to carry based on your business operation. The insurance company must be authorized to do business in the state where your Franchised Business is located and must be approved by us. It must also be rated "A" or better by A.M. Best & Company, Inc.
We have the right to require you to purchase any products or services necessary to operate your Franchised Business from a vendor that we approve or designate, which may include us (an "Approved Vendor"). We will provide you with a list of our Approved Vendors in writing as part of the Franchise Operations Manual or otherwise in writing, and we may update or modify this list as we deem appropriate. We may develop proprietary productsfor use in your Franchised Business, including private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 36–38)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, 'Required Purchases' are defined as the products or services that franchisees must purchase or lease from an approved vendor, or in accordance with My Salon Suite's standards and specifications. These purchases are a significant part of the franchisee's costs, estimated to be approximately 25.1% to 28.9% of the initial establishment costs. After the initial start-up phase, these required purchases are estimated to be approximately 31.1% to 35.8% of the ongoing operational costs. This means a substantial portion of a franchisee's expenses are dictated by these mandatory purchases.
My Salon Suite maintains control over these purchases to ensure quality and consistency across all franchise locations. Franchisees are required to use computer hardware and software, including a point-of-sale system, that My Salon Suite designates. These items must be obtained from specified vendors. Additionally, franchisees must maintain specific insurance coverage, including comprehensive general liability ($2,000,000), motor vehicle liability ($1,000,000), and professional liability insurance ($1,000,000 to $2,000,000), from an insurance company approved by My Salon Suite and rated "A" or better by A.M. Best & Company, Inc.
My Salon Suite also has the right to require franchisees to purchase any products or services necessary to operate their franchised business from an approved vendor, which may include My Salon Suite itself or its affiliates. The list of approved vendors is provided in the Franchise Operations Manual or in writing and can be updated or modified. My Salon Suite may also develop proprietary products, including private-label products bearing their marks, which franchisees are required to purchase from them or their affiliates. This system allows My Salon Suite to maintain brand standards and potentially generate revenue through rebates and other payments from vendors based on franchisee purchases.