Under what circumstances is the My Salon Suite referral fee not applicable?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Annual Conference Fee (4) | Then-current fee (currently $750 - $950 per person). Non-attendance fee is currently $2,000. | Upon demand | Payable to us to help defray the cost of your attendance at any annual conference of all franchisesthat we choose to hold. This fee is due regardless of whether or not you attend our annual conference in any given year. You will also be charged an additional fee for non-attendance. |
|---|---|---|---|
| Inspection and Testing | The costs we incur in testing/inspecting your proposed product/vendor (estimated to be between $100 to $500) | As incurred | Payable if we inspect a new product,service, or proposed vendor nominated by you. |
| ResaleConsulting Fee(5) | $7,500 | 50% on signing Resale Services Consulting Agreement and 50% paid at closing. | You may request that we assist you in selling your Franchised Business. The Resale Consulting Fee is due only if you use |
Source: Item 5 — Initial Fees (FDD pages 18–28)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the Resale Consulting Fee of $7,500 is only applicable if a franchisee requests and utilizes My Salon Suite's assistance in selling their franchised business. This fee covers the cost of My Salon Suite providing resale consulting services.
In practical terms, a My Salon Suite franchisee is not obligated to pay the Resale Consulting Fee if they independently sell their franchise without the franchisor's involvement. This provides franchisees with the option to manage the resale process themselves, potentially saving them $7,500.
However, if a franchisee chooses to leverage My Salon Suite's expertise and resources to facilitate the sale, the Resale Consulting Fee becomes due. The fee is structured with 50% payable upon signing the Resale Services Consulting Agreement and the remaining 50% due at the closing of the sale. This arrangement incentivizes My Salon Suite to actively support the franchisee in finding a suitable buyer and completing the transaction.