When is the Royalty Fee due for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
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Under the Franchise Agreement, you will pay us a reduced Royalty Fee of 2.75% of Gross Sales for the first 6 months your new Center or Conversion Center is open for business. This reduction of the Royalty Fee is in place so you can invest additional money in the initial marketing plan during the first 6 months your Center or Conversion Center is open. The reduced Royalty Fee described in the preceding paragraph only applies to new Centers and Conversion Centers and it is not available to a franchisee that purchases a Resale Center.
Under the Franchise Agreement, beginning the 7th month through the 12th month you will pay us 5.5% of Gross Revenues. Beginning the 13th month you will pay us the greater of $1,000 or 5.5% of the new Center's or Conversion Center's Gross Revenues through the expiration date of the Franchise Agreement.
The Royalty Fee is due and payable through electronic transfer on or before the 10th day of the month following the month to which the Royalty Fee applies (unless the day is a holiday, in which case payment (electronic transfer) will be made on the next succeeding business day). You must provide us with the authorization for electronic transfer of the Royalty Fee before you open and commence operation of your Center. We may change the method of payment of the Royalty Fee from electronic transfer to any other method of payment as we deem appropriate at any time. A business day means any d
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 Royalty Fee is due on or before the 10th day of each month. This payment is for the previous month's Gross Revenues. The Franchise Agreement requires franchisees to authorize electronic transfers for Royalty Fee payments before commencing operations. If the 10th falls on a holiday, payment via electronic transfer is due the next business day. My Salon Suite retains the right to modify the payment method at any time. A business day excludes Saturdays, Sundays, and national holidays.
For new Centers or Conversion Centers, My Salon Suite offers a reduced Royalty Fee of 2.75% of Gross Revenues for the first 6 months. From months 7 through 12, the Royalty Fee increases to 5.5% of Gross Revenues. Starting in the 13th month, the Royalty Fee is the greater of $1,000 or 5.5% of Gross Revenues. This reduction does not apply to Resale Centers.
Late payments of the Royalty Fee will incur a fee of $50 per day until the balance is paid. Additionally, if any payment is not made by the due date, My Salon Suite can charge interest, accruing from the original due date until the payment is received. The interest rate is the lesser of 1.5% per month or the maximum rate permitted by law.