Under what conditions can My Salon Suite condition approval of a franchise sale?
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 the 2025 FDD, My Salon Suite has broad discretion to condition its approval of a franchise transfer. Specifically, My Salon Suite may condition or withhold consent for a transfer based on the circumstances of the transfer or for any other reason it deems appropriate.
My Salon Suite will assess several factors pertaining to the prospective buyer. The transferee must secure and maintain all necessary permits and licenses within the time frame that My Salon Suite stipulates. If leases or other agreements require consent from lessors or other parties, that consent must be obtained for the transfer to proceed. The purchase price and terms of the transfer must not be so burdensome that they impair the future operation of the franchise by the new owner.
My Salon Suite also considers any existing issues with the franchise itself. The franchisee must correct any deficiencies that My Salon Suite has identified. Alternatively, the transferee can agree to upgrade, remodel, expand, or refurbish the franchise to meet My Salon Suite's current standards within a specified time period. My Salon Suite's approval of a transfer does not waive any claims it may have against the transferring party. My Salon Suite also has the right to disclose the franchisee's revenue reports and other financial information to any prospective transferee.
Prospective franchisees should be aware that My Salon Suite retains significant control over franchise transfers. This could impact the ability to sell the franchise in the future and the terms under which a sale can occur. Franchisees should seek clarification from My Salon Suite regarding specific conditions or concerns related to potential transfers.