Under what condition would My Salon Suite share proceeds from its reserved activities with franchisees?

According to My Salon Suite's 2025 Franchise Disclosure Document, the Franchise Agreement does not grant franchisees the right to engage in activities reserved by My Salon Suite or to share in any proceeds from those activities. These reserved activities include establishing franchises outside the franchisee's protected territory, marketing similar products under different trademarks, using alternative distribution channels, and engaging in other activities not expressly prohibited in the Franchise Agreement.

Specifically, My Salon Suite and its affiliates retain the exclusive right to establish, operate, and license Franchised Businesses outside of a franchisee's Protected Territory. They also reserve the right to market and sell similar products and services under different trademarks, and to distribute approved products and services through alternative channels, both within and outside the Protected Territory. Additionally, My Salon Suite can acquire, merge with, or franchise any business, even those offering similar services, without providing franchisees a share of the proceeds.

The only exception to this is if My Salon Suite agrees in writing to share proceeds with the franchisee. This means that unless a separate written agreement exists, franchisees have no inherent right to any financial benefit from activities that My Salon Suite reserves for itself.

This arrangement is typical in many franchise systems, where the franchisor retains control over certain aspects of the business and revenue streams. Prospective My Salon Suite franchisees should be aware that their financial returns are primarily tied to the performance of their individual franchise location and not from the broader activities of the franchisor unless explicitly stated in a written agreement.