What restrictions are placed on My Salon Suite franchisees regarding involvement in other competing businesses at the location of the franchised business?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
To protect the goodwill and unique qualities of the My Salon Suite franchise system and the confidentiality and value of the Confidential Information, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor covenants that, during the time Covenantor is associated with Franchisee, Covenantor will not:
- (i) Divert, or attempt to divert, any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with SMF's proprietary trademarks and operating system.
- (ii) Own, maintain, engage in, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of any other business that: (i) is the same as, or substantially similar to the Franchised Business; (ii) engages in the rental of salon studio spaces or that offers or provides any of the other products/services that are offered by the Franchised Business; or (iii) grants or has granted franchises or licenses, or establishes or has established joint ventures, for one or more businesses that engage in the rental of salon studio spaces or that offer or provide any of the other products/services that are offered by the Franchised Business (collectively, a "Competing Business"); provided, however, that this Section does not apply to Franchisee's operation of a Franchised Business pursuant to a valid franchise agreement with SMF.
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 certain restrictions regarding involvement in competing businesses, particularly at the location of their franchised business. During the time the franchisee is associated with My Salon Suite, they cannot own, maintain, engage in, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of any other business that is the same as or substantially similar to the franchised business. This includes businesses that rent salon studio spaces or offer similar products/services.
This restriction extends to businesses that grant franchises or licenses, or establish joint ventures for businesses involved in salon studio rentals or similar offerings. However, this restriction does not apply to the franchisee's operation of a My Salon Suite franchise under a valid franchise agreement with SMF.
These measures are in place to protect the goodwill and unique qualities of the My Salon Suite franchise system, as well as the confidentiality and value of confidential information provided to the franchisee. These restrictions are in place to ensure that franchisees are fully committed to the success of their My Salon Suite business and do not divert resources or customers to competing ventures.