Within how many days are royalty billings to My Salon Suite franchisees due?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable consist primarily of royalty billings to franchisees and are due within 30 days. Accounts receivables are stated at amounts net of an allowance for credit losses. The allowance for credit losses is estimated based on historical collectivity, aging of receivables and other factors such as franchisee performance or circumstances that may impact the Company's ability to collect against those receivables. Accounts receivables are written off through the allowance account when it is determined the receivable will not be collected. Accounts receivable may also be converted to notes receivable due from franchisees at the discretion of the Company.
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, accounts receivable, which primarily consist of royalty billings to franchisees, are due within 30 days. This means that franchisees are expected to pay their royalty fees to My Salon Suite within 30 days of the billing date.
My Salon Suite states these receivables are presented net of an allowance for credit losses. This allowance is estimated based on factors like historical collectability, the aging of receivables, and franchisee performance. This indicates that My Salon Suite proactively accounts for potential non-payment by franchisees.
Furthermore, My Salon Suite has the discretion to convert accounts receivable into notes receivable due from franchisees. This suggests that My Salon Suite may offer franchisees the option to convert outstanding royalty payments into a formal payment plan under certain circumstances. Franchisees should inquire about the terms and conditions of such conversions, including any interest or fees that may apply.