What is the term length in years for the My Salon Suite conversion franchise fee financing?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
described below) or indirect financing for a new My Salon Suite franchised business. We do offer financing of the conversion franchise fee of $50,000 as outlined below. We do not guarantee your note, lease, or obligations.
| Item | Source of | Down | Amount | Term | Interest | Monthly | Prepay | Security | Liability | Loss of |
|---|---|---|---|---|---|---|---|---|---|---|
| Financed | Financing | Payment | Financed | (Yrs.) | Rate | Payment | Penalty | Required | Upon Default | Legal Right on Default |
| Initial | Us(note 1) | $15,000 | $35,000 |
Source: Item 10 — FINANCING (FDD pages 41–42)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, My Salon Suite may offer financing for a portion of the initial franchise fee to conversion franchisees who meet their credit standards. Specifically, My Salon Suite may finance $35,000 of the initial franchise fee if the franchisee pays $15,000 up front.
The term length for the financing of the conversion franchise fee is 36 months, or 3 years, with 0% interest per annum. The monthly installment payment is $972.22 if the full $35,000 is financed. The first payment is due 30 days after the conversion franchise commences operations. My Salon Suite will automatically debit the franchisee's business checking account on the 25th day of each month.
My Salon Suite requires a promissory note to be signed, as well as a personal guarantee from the principals if the franchisee is a corporation or other business entity. Franchisees can prepay the note without penalty. However, if a franchisee does not meet My Salon Suite's minimum credit standards, they may be required to pay a higher down payment than $15,000 or pay the full initial franchise fee.
Events of default include failure to pay, breach of the franchise agreement, termination of the franchise agreement, insolvency, or sale of assets. If a franchisee defaults, My Salon Suite may terminate the franchise agreement, and all outstanding principal under the note will become immediately due and payable. The franchisee is also responsible for covering any costs My Salon Suite incurs while enforcing the note.