Does the restriction on My Salon Suite franchisees' involvement in competing businesses extend to the Protected Territory?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Other Competing Businesses*.* Own, maintain, engage in, have any interest in, or be employed as an officer, director, executive, or principal of any other Competing Business within the following areas: (i) at the location of the Franchised Business; (ii) within the Protected Territory; (iii) within a radius of twenty (20) miles of the perimeter of the Protected Territory granted hereunder; or (iv) within a radius of twenty (20) miles of the perimeter of any other protected territory licensed by Franchisor to any third party or any Franchised Business that is in operation or under development, as of the date of expiration, transfer or termination of this Franchise Agreement through the date of Franchisee's involvement in the Competing Business; or
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, franchisees face restrictions on involvement with competing businesses both during the term of the franchise agreement and for a period after the agreement terminates or is transferred. During the franchise term, a franchisee cannot own, maintain, engage in, have any interest in, or be employed by any other competing business. These restrictions apply not only to the location of the franchised business but also within the franchisee's protected territory.
Specifically, the restrictions extend to the location of the franchised My Salon Suite business, within the protected territory granted to the franchisee, within a 20-mile radius of the perimeter of the protected territory, and within a 20-mile radius of any other protected territory licensed by My Salon Suite to a third party. This broad geographic scope aims to prevent franchisees from directly competing with their own My Salon Suite business or encroaching on other franchisees' territories.
After the franchise agreement concludes, the franchisee is subject to a two-year post-term covenant not to compete. This covenant prevents the franchisee from engaging in activities such as franchising or licensing similar businesses, owning or being involved in competing businesses, or contacting My Salon Suite's vendors for competitive purposes. The geographic scope of this post-term restriction includes the former franchisee's territory and a 20-mile radius around it, as well as a 20-mile radius around any other My Salon Suite protected territory. These measures are in place to protect My Salon Suite's goodwill, confidential information, and unique system qualities.