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My Salon Suite/Salon Plaza Franchise Costs & Fees

Date of Incorporation: 2010
Franchising Since: 2012
Headquarters: Metairie, Louisiana

Business Description: Suite Management Franchising, LLC, the franchisor, offers franchises for the operation of: (i) turnkey salon suite studios and related services in a luxury environment under the brand My Salon Suites to salon professionals where such professionals can provide health and beauty services to their own respective clients; and (ii) turnkey salon suite studios and related services featuring upscale modern décor under the brand Salon Plaza to salon professionals where such professionals can provide health and beauty services to their own respective clients.

Franchise Offer: The franchisor offers two franchises that operate under its proprietary system. One is for the use of the “My Salon Suite” trademarks, trade names, service marks, and logos for the operation of My Salon Suite Businesses. The other is for the use of our “Salon Plaza” trademarks, trade names, service marks, and logos for the operation of Salon Plaza Businesses.

Financial Assistance: Franchise Credit LLC, (FC LLC) through its Managing Agent, Mount Pleasant Capital, LLC, offers financing for franchisees’ construction costs, real estate improvements, fixtures, furniture, and signs. At its sole discretion, FC LLC may offer franchisees financing for other items associated with the franchise. The financing will be in the form of a loan. In addition to the financing arrangements described, if requested, the franchisor may assist franchisees in obtaining other financing. Financing terms and interest rates will vary depending on the financial institution and the financing program offered by that institution. Generally, the franchisor does not guaranty any of the franchisee’s obligations to the third party lenders described above, however it may, at our sole discretion, choose to do so.

Training and Assistance: Franchisees and any designated manager or representative must complete the initial training to the franchisor’s satisfaction before they open their Franchised Business. The franchisor provides initial training at no charge for up to 2 people. The initial training consists of 12 hours of classroom training and 4 hours of on-the-job training. From time to time, the franchisor may require that franchisees, designated managers, and other employees attend Franchise System-wide refresher or additional training courses. Some of these courses may be optional, while others may be required. Franchisees may also request that the franchisor provide additional training (either at corporate headquarters or at their Franchised Business).

Territory: Under the Franchise Agreement, the franchisor grants franchisees an exclusive Protected Territory determined in its sole discretion where it will not open, operate, or license any third party the right to own or operate a Franchised Business utilizing the Marks. The size of the Protected Territory may vary from other franchisees based on the location and demographics surrounding the Approved Location, but the typical Protected Territory will be a radius of 2 miles. In certain densely populated metropolitan areas or sparsely populated rural areas, a territory may be considerably smaller or larger.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may enter into 2 consecutive successor terms of 10 years.

Obligations and Restrictions: Franchisees (or one or more of the principals if franchisees are a corporation or partnership or limited liability company) must personally supervise the day-to-day operations of the Franchised Business. Franchisees must devote their best efforts to the management and operation of the Franchised Business. Franchisees may, however, delegate the day-to-day operation of the Franchised Business to a manager (the Designated Manager), provided that the Designated Manager successfully completes the Initial Training Program before assuming any managerial responsibility and otherwise meets the then-current standards for a Designated Manager. Franchisees must sell or offer for sale only those Approved Products and Services authorized by the franchisor and which meet its standards and specifications. Franchisees must follow our policies, procedures, methods, and techniques.

Estimated Number of Units: 55

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $50,000 $50,000
Travel and Living Expenses $1,000 $3,000
Rent or Real Estate $4,500 $17,000
Improvements/Conversions $194,000 $593,000
Furniture and Fixtures $90,000 $195,000
Signage $3,000 $10,000
Miscellaneous Opening Costs $1,000 $3,000
Operating Supplies $1,000 $5,000
Advertising/Marketing (3 months) $2,300 $10,000
Insurance (annual) $1,400 $4,000
Additional Funds – 3 months $0 $40,000
Design Standards Fee $0 $1,000
Project Management Fee $0 $2,500
Architectural Services Fee $7,500 $21,500
ESTIMATED TOTAL $395,700 $955,000
Other Fees
Type of Fee Amount
Royalty Fee 5.5% of Gross Revenues.
Brand Building Fund Contribution Up to 1% of your monthly Gross Revenues.
Cooperative Advertising As determined by cooperative.
Unauthorized Advertising Fee $500 per occurrence.
Site Selection Assistance Then-current fee (currently $500 per day plus travel and living expenses).
Insurance Policies Cost of insurance premiums, plus a 20% administrative fee.
Initial Training for Additional Persons $2,000 per person.
Additional Assistance and Training Then-current fee (currently $500 per day plus travel and living expenses).
Technology Fee Then-current fee (we do not currently charge this fee).
Convention Fee Then-current fee (currently estimated to be $500 per person).
Inspection and Testing The costs the franchisor’s incurs in testing/inspecting your Proposed product/supplier (estimated to be between $100 to $500)
Customer Issue Resolution Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.
Payment Service Fees Up to 4% of total charge.
Interest Lesser of 1.5% per month or the maximum rate permitted by law.
Returned Check or Insufficient Funds Fee $100 per occurrence.
Failure to Submit Required Report Fee $100 per occurrence and $100 per week.
Audit Expenses Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $15,000)
Relocation Fee The franchisor’s costs.
Indemnification Will vary under circumstances.
Professional Fees and Expenses Will vary under circumstances.
Renewal Fee $2,000
Transfer Fee $7,000
Extension Fee $2,500

The above information has been taken from the FDD of My Salon Suite/Salon Plaza. Year of FDD: 2016

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