What was the total amount of capital expenditures for My Salon Suite in 2024?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
The furniture, equipment and developed software have an expected life of three to seven years, and leasehold improvements are amortized over the shorter of the life of the lease or the useful life of the assets. Total fixed assets are inclusive of construction in process of $3,339,301 and $1,905,869 at December 31, 2024 and 2023, respectively, and is primarily included in leasehold improvements.
The Company executed asset purchase agreements on January 30, 2024 for 2 corporate salon suite locations owned by Mera Studio Suites, LLC and on August 1, 2024 for 1 corporate salon suite location owned by Pylons, LLC, both third parties.
The total cash consideration paid of $4,224,473 was allocated to the assets acquired and liabilities assumed by the Company based on management estimates of their fair value in accordance with FASB ASC Topic 805, Business Combinations, on the date of acquisition.
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the company's total fixed assets are inclusive of construction in process of $3,339,301 at December 31, 2024. These are primarily included in leasehold improvements.
Additionally, the company executed asset purchase agreements on January 30, 2024, for two corporate salon suite locations owned by Mera Studio Suites, LLC, and on August 1, 2024, for one corporate salon suite location owned by Pylons, LLC. The total cash consideration paid for these acquisitions was $4,224,473.
Prospective franchisees should note that these figures reflect My Salon Suite's corporate expenditures and may not directly correlate with the investment required to open a franchised location. It is important for potential franchisees to carefully review Item 7 of the FDD, which outlines the estimated initial investment for a franchise, and to conduct their own due diligence to determine their specific capital needs.