What are the requirements for the Brand Building Fund contribution for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
e twelfth (12th) month that the Franchise Business is open, Franchisee shall, on or before the tenth (10th) day of each month pay to Franchisor a monthly Royalty Fee equal to five and one-half percent (5.5%) of Gross Revenues. Beginning the thirteenth (13th) month following the opening of the Franchised Business through the end of the Term of this Franchise Agreement, Franchisee shall, on or before the tenth (10th) day of each month, pay to Franchisor the greater of One Thousand Dollars ($1,000) or five and one-half percent (5.5%) of Gross Revenues." s.
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Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, franchisees are required to contribute to a System-wide marketing and brand building fund, referred to as the "Brand Building Fund". Currently, the minimum contribution is $200 per month. However, My Salon Suite retains the right to increase this contribution up to a maximum of two percent (2%) of the franchisee's Gross Revenues. This "Fund Contribution" is due monthly, at the same time and in the same manner as the Royalty Fee.
My Salon Suite maintains sole discretion over advertising programs, including approving creative concepts, materials, and media. The Brand Building Fund aims to maximize public recognition of the Proprietary Marks and enhance the collective success of all franchised businesses. Franchisees acknowledge that contributions do not guarantee equivalent or proportionate expenditures for their specific franchise or direct pro rata benefits from advertising placement.
The Brand Building Fund can be used to cover various advertising costs, such as television, radio, magazine, and newspaper campaigns, direct mail, outdoor advertising, internet marketing, in-store materials, and public relations activities. It also covers the costs of employing advertising agencies, website development, and the franchisor's personnel costs for advertising. All sums paid by franchisees are maintained in a separate account, and the franchisor can reimburse itself for reasonable expenses in managing the fund. The fund's earnings do not benefit the franchisor directly, and it operates as a conduit for collecting and expending advertising fees.
My Salon Suite prepares an annual statement of operations for the Brand Building Fund, available to franchisees upon written request. Any remaining funds at the end of the year carry over to the next year. While the fund is intended to be perpetual, My Salon Suite reserves the right to terminate it, ensuring all monies are used for advertising or returned to contributors. Even if terminated, My Salon Suite can reinstate the fund at its discretion, operating it as described in the FDD.