What must the transferee of a My Salon Suite franchise demonstrate to the franchisor's satisfaction?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
(10) The transferee must obtain, within the time limits set by Franchisor, and maintain thereafter, all permits, and licenses required for the operation of the Franchised Business;
(11) To the extent required by the terms of any leases or other agreements, the lessor or other parties must have consented to the proposed transfer;
(12) The transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;
(13) The purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation of the Franchised Business and performance under its franchise agreement;
(14) (a) Franchisee has corrected any existing deficiencies of the Franchised Business of which Franchisor has notified Franchisee on a punch list or in other communications, and/or (b) the transferee agrees (if the transfer is of this Agreement) to upgrade, remodel, expand and/or refurbish the Franchised Business and to add or replace services, equipment, and/or other items required to operate the Franchised Business, in accordance with Franchisor's then current requirements and specifications for My Salon Suite Franchised Businesses within the time period Franchisor specifies following the effective date of the transfer;
(15) Franchisee must request that Franchisor provide the prospective transferee with Franchisor's current form of disclosure document and Franchisor shall not be liable for any representations not included in the disclosure document;
(16) Franchisor's approval of the transfer shall not constitute a waiver of any claims Franchisor may have against the transferring party;
(17) Franchisor shall have the right to disclose to any prospective transferee such revenue reports and other financial information concerning Franchisee and Franchisee's Franchised Business as Franchisee has supplied Franchisor hereunder; and
(18) In any event, Franchisor may withhold or condition Franchisor's consent to any transfer as Franchisor deems appropriate based on the circumstances of the transfer or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, a transferee must meet several conditions to gain the franchisor's approval. The transferee must obtain and maintain all necessary permits and licenses required to operate the franchise within the time limits set by My Salon Suite. If leases or other agreements require consent for the transfer, the transferee must ensure that the lessor or other relevant parties have given their consent. The transfer must also comply with all applicable laws, including state and federal laws governing franchise sales.
Furthermore, the purchase price and terms of the transfer must not be so financially burdensome that they impair or threaten the future operation of the My Salon Suite franchise or the transferee's ability to meet the franchise agreement obligations. The franchisee must correct any existing deficiencies that My Salon Suite has identified, or the transferee must agree to upgrade, remodel, expand, or refurbish the franchise to meet My Salon Suite's current standards and specifications within a specified timeframe after the transfer. The franchisee is responsible for requesting that My Salon Suite provide the prospective transferee with the most current disclosure document, and My Salon Suite is not liable for any representations not included in that document.
My Salon Suite's approval of the transfer does not waive any claims the franchisor may have against the transferring party. My Salon Suite retains the right to disclose revenue reports and other financial information about the franchisee and their franchise to any prospective transferee, provided that the franchisee has supplied this information to the franchisor. Finally, My Salon Suite reserves the right to withhold or condition its consent to any transfer based on the specific circumstances or other considerations.