Under what conditions might My Salon Suite establish a Brand Building Fund?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
e twelfth (12th) month that the Franchise Business is open, Franchisee shall, on or before the tenth (10th) day of each month pay to Franchisor a monthly Royalty Fee equal to five and one-half percent (5.5%) of Gross Revenues. Beginning the thirteenth (13th) month following the opening of the Franchised Business through the end of the Term of this Franchise Agreement, Franchisee shall, on or before the tenth (10th) day of each month, pay to Franchisor the greater of One Thousand Dollars ($1,000) or five and one-half percent (5.5%) of Gross Revenues." s.
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Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the Brand Building Fund has already been established. The document states, "Franchisor has established a System-wide marketing and brand building fund." Franchisees are required to contribute to this fund, with a minimum contribution of $200 per month. However, My Salon Suite retains the right to increase this contribution up to 2% of the franchisee's gross revenues. These contributions are due monthly, at the same time and manner as the royalty fee.
The Brand Building Fund is intended to maximize public recognition and acceptance of the Proprietary Marks and enhance the collective success of all Franchised Businesses operating under the System. My Salon Suite directs all advertising programs and has sole discretion to approve or disapprove the creative concepts, materials, and media used in such programs, as well as their placement and allocation. Franchisees acknowledge that expenditures from the Brand Building Fund may not be equivalent or proportionate to their individual contributions, nor is there a guarantee of direct or pro rata benefits from advertising placement.
My Salon Suite may use the Brand Building Fund to cover various costs related to advertising, including television, radio, magazine, and newspaper campaigns, direct mail, outdoor billboard advertising, internet marketing, in-store marketing materials, public relations activities, advertising agencies, website development, and personnel costs for advertising. All sums paid into the Brand Building Fund are maintained in a separate account and may be used to defray My Salon Suite's expenses related to the administration and direction of the fund and advertising programs. The Brand Building Fund and its earnings do not otherwise benefit My Salon Suite, and the fund operates solely as a conduit for collecting and expending advertising fees. My Salon Suite will not use the Brand Building Fund contributions for advertising that is principally a solicitation for the sale of franchises, but Franchisor reserves the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing.
While the Brand Building Fund is intended to be of perpetual duration, My Salon Suite may terminate it, but not until all monies in the fund have been expended for advertising or promotional purposes or returned to contributing franchisees. If My Salon Suite elects to terminate the Brand Building Fund, it may, in its sole discretion, reinstate the Brand Building Fund at any time, operating it as described in the Franchise Disclosure Document.