Are there any exceptions to the standard 10-year term for a My Salon Suite Franchise Agreement?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary |
|---|---|---|
| Agreement | ||
| a. Term | Section 4.A. of Franchise Agreement | Ten (10) years. |
| Section 3 of Development Agreement | Term continues until completion of Development Schedule | |
| b. Renewal or | Section 4.B. of Franchise | If you are in good standing and you meet |
| extension | Agreement | other requirements, you may enter |
| ofterm | ||
| 2 consecutive renewal | ||
| terms of 10 | ||
| years. | ||
| c. Requirementsfor | Sections 4.A. through | Your renewal franchise rights permit |
| you to renew or extend | 4.B. of Franchise Agreement | you to remain as a Franchisee after the initial term of your Franchise Agreement expires. You must: (i) provide notice of your renewal no fewer than 9 months and no greater than one (1) year prior to the end of the term; (ii) demonstrate to our satisfaction that you have the right to operate the Franchised Business at the Approved Location for the duration of the renewal term or, if you are unable to continue operating at the Approved Location, secure a substitute location that is acceptable to us; (iii) complete all maintenance, refurbishing, renovating, updating, and remodeling of the |
| Provision | Section | Summary |
| in | ||
| Franchise | ||
| -------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Agreement | Franchised Business premises, as well | |
| as | ||
| any updates to required hardware and | ||
| software, to comply with our then | ||
| current Franchise System standards and | ||
| specifications for new franchisees; (iv) | ||
| not be | ||
| in breach of any provision of the | ||
| Franchise | ||
| Agreement | ||
| or | ||
| any | ||
| other | ||
| agreement | ||
| with | ||
| us | ||
| our | ||
| affiliates, | ||
| Approved Vendors, and also be in | ||
| substantial | ||
| compliance | ||
| with | ||
| these | ||
| agreements | ||
| during | ||
| their | ||
| respective | ||
| terms; | ||
| (v) | ||
| satisfy | ||
| all | ||
| monetary | ||
| obligations you have to | ||
| us, our affiliates, | ||
| and approved or designated vendors; | ||
| (vi) execute our then-current form of | ||
| franchise agreement and any ancillary | ||
| documents | ||
| for | ||
| the | ||
| renewal | ||
| term, | ||
| and | ||
| this | ||
| new franchise agreement may have | ||
| materially | ||
| different | ||
| terms | ||
| and | ||
| conditions | ||
| (including, | ||
| for | ||
| example, | ||
| higher Royalty Fees | ||
| and | ||
| Brand Building | ||
| Fund Contributions) from the Franchise | ||
| Agreement that covered your initial | ||
| term; | ||
| (vii) | ||
| satisfy | ||
| our | ||
| then-current | ||
| training | ||
| requirements | ||
| for | ||
| renewing | ||
| franchisees | ||
| at your sole expense prior to | ||
| the renewal | ||
| date; | ||
| (viii) | ||
| execute a general | ||
| release in favor of us and our affiliates | ||
| in the form | ||
| we | ||
| prescribe; | ||
| and | ||
| (ix) | ||
| pay us | ||
| a renewal | ||
| franchise | ||
| fee equal to 15% of | ||
| our then- current | ||
| initial | ||
| franchise | ||
| fee | ||
| for | ||
| d. Termination by you | Section 14.G. of Franchise Agreement | a Franchised Business. You do not have the contractual right to terminate the Franchise Agreement, subject to state law. |
| e. Termination by franchisor without cause | Not Applicable | Not Applicable. A termination of the Development Agreement does not permit the franchisor to terminate the Franchise Agreement. |
| f. Termination by franchisor with cause | Sections 14.A. through 14.B. of Franchise Agreement Section 6 of Development Agreement | We may terminate your agreement upon your default and, in some instances, failure to cure. Termination is effective upon delivery of written notice, except as otherwise provided in the Franchise |
| Provision | Section | Summary |
| in | ||
| Franchise | ||
| ----------------------------------------------------------------- | ----------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–76)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the standard term for a Franchise Agreement is ten years, as detailed in Section 4.A of the Franchise Agreement. However, there is an exception related to the Development Agreement. Section 3 of the Development Agreement states that the term continues until the completion of the Development Schedule. This means that if a franchisee has a Development Agreement, their initial term may extend beyond ten years until they fulfill their development obligations.
Additionally, the Franchise Agreement can be renewed for two consecutive terms of 10 years each, as outlined in Section 4.B. To qualify for renewal, franchisees must be in good standing and meet specific requirements. These requirements, detailed in Sections 4.A through 4.B, include providing timely notice of renewal, demonstrating the right to operate at the approved location, completing necessary refurbishments to meet current system standards, and complying with all agreements.
Furthermore, franchisees must not be in breach of any agreements, must satisfy all monetary obligations, and must execute the then-current form of the franchise agreement, which may contain materially different terms, including potentially higher fees. Franchisees must also meet the then-current training requirements and execute a general release in favor of My Salon Suite and its affiliates. Finally, they must pay a renewal franchise fee equal to 15% of the then-current initial franchise fee. These conditions ensure that only qualified and compliant franchisees are granted renewal terms, and that My Salon Suite can update the terms of the agreement to reflect current business practices.
In summary, while the standard term for a My Salon Suite franchise is 10 years, the term can be extended by the Development Agreement until the Development Schedule is complete. Franchisees also have the option to renew for two additional 10-year terms if they meet specific conditions and requirements outlined in the Franchise Agreement.