Can My Salon Suite retroactively increase the Brand Building Fund contribution?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | If you are a new Center or a Conversion Center you will pay 2.75% of Gross Revenues for the first 6 months. Beginning the 7 th month through the 12 th month you will pay 5.5% of Gross Revenues for . Beginning the 13th month after your Franchised Business opens through the end of the term of the Franchise Agreement, you will pay the greater of $1,000 or 5.5% of Gross Revenues. | On or before | The "Royalty Fee" is based on "Gross Revenues" during the previous month. The reduction in the Royalty Fee for the first 6 months is not applicable to the purchase of a Resale Center. |
| the 10th day of | |||
| each month | |||
| Brand Building Fund Contribution | Currently a minimum of $200 per month. We may increase this up to 2% of your monthly Gross Revenues. | Same as | This contribution will be used for a "Brand Building Fund" for our use in promoting and building our My S |
Source: Item 5 — Initial Fees (FDD pages 18–28)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the Brand Building Fund contribution is currently a minimum of $200 per month. However, My Salon Suite retains the right to increase this contribution up to a maximum of 2% of the franchisee's monthly Gross Revenues.
This means that while the base contribution is set, franchisees need to be aware that this amount can fluctuate based on their revenue and the franchisor's decision to increase the percentage. This change could impact a franchisee's profitability and financial planning. Franchisees should factor in the potential for this increase when projecting their expenses.
It is important to note that the Brand Building Fund is used by My Salon Suite to promote and build the franchise brand. While franchisees contribute to this fund, the franchisor has discretion over how the funds are spent. Franchisees should inquire about the current and planned uses of the Brand Building Fund to understand how their contributions will benefit the overall My Salon Suite brand and, potentially, their individual business.