Which section of the My Salon Suite Franchise Agreement discusses post-term obligations?
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.
Post-Term Covenant Not to Compete.
Source: Item 9 — **FRANCHISEE'S OBLIGATIONS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, Item 23 discusses post-term obligations in two sections. The first section outlines restrictions on activities for two years after the franchise agreement ends. During this period, the franchisee and their owners/principals cannot be involved with any business that grants franchises or licenses for salon studio spaces that compete with My Salon Suite.
The second section details the post-term covenant not to compete. This section states that to protect the goodwill and unique qualities of the My Salon Suite system, the franchisee agrees for a continuous uninterrupted period of two (2) years that the franchisee will not be involved in any competing business. This includes franchising or licensing activities, owning or being involved in other competing businesses within certain geographic areas, and contacting My Salon Suite's vendors for competitive purposes.
These restrictions are designed to protect My Salon Suite's market position and confidential information. The agreement also states that any breach of these covenants would cause irreparable injury to My Salon Suite, entitling them to injunctive relief in addition to other legal remedies. This means My Salon Suite can seek a court order to stop the franchisee from violating the agreement.