Franchising Since: 2012
Headquarters: Carrollton, Texas
Estimated Number of Units: 355
Franchise Description: The franchisor is Suite Management Franchising, LLC. The franchisor offers franchises for the operation of turnkey salon suite studios and related services in a luxury environment under the brand “My Salon Suite” to salon professionals where such professionals can provide health and beauty services to their own respective clients.
Training Overview: Franchisees and any designated manager or representative must complete the initial training (My Salon Suite University) to the franchisor’s satisfaction before they open their franchised business. My Salon Suite University consists of (1) Online Training (New Store Training and Suite Force); and (2) On-the-Job Mentor Training (at a franchised business the franchisor designates or online). After My Salon Suite University is completed, it is recommended that all franchise owners re-attend My Salon Suite University every five years. 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 online and/or on demand education).
Territory Granted: Under the Franchise Agreement, the franchisor grants franchisees a protected territory. The protected territory is where the franchisor will not open, operate, or license any third party the right to own or operate a franchised business utilizing the marks, and the boundaries of the territory are determined in the franchisor’s sole discretion. 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 two miles and may overlap with another franchisee’s protected territory. In certain densely populated metropolitan areas or sparsely populated rural areas, a territory may be considerably smaller or larger.
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, which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques.
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 two consecutive successor terms of 10 years.
Financial Assistance: The franchisor typically does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. For conversion franchisees that meet the franchisor’s credit standards and qualify for financing, it may offer them financing for a portion of the initial franchise fee necessary to establish their franchised business. The franchisor offers a reduced initial franchise fee of $25,000, a 50% discount, to veterans of the U.S. Armed Forces who meet the requirements of the VetFran Program or first responders (e.g., paramedics, emergency medical technicians, police officers, sheriffs, and firefighters) who meet program requirements.
Estimated 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 | $1,200 | $37,712 |
| Improvements/Conversions | $353,351 | $984,638 |
| Furniture and Fixtures | $173,881 | $374,552 |
| Freight | $3,060 | $10,892 |
| Signage | $4,960 | $26,045 |
| Miscellaneous Opening Costs | $5,000 | $9,000 |
| Operating Supplies | $10,000 | $10,000 |
| Advertising/Marketing (3 months) | $15,000 | $20,000 |
| Insurance (annual) | $1,400 | $4,000 |
| Additional Funds – 3 months | $35,000 | $65,000 |
| Design Standards Fee | $1,500 | $2,500 |
| Architectural Services Fee | $14,704 | $54,756 |
| Project Management Fee | $5,000 | $5,000 |
| Licensing and Permitting | $50 | $25,000 |
| ESTIMATED TOTAL (new location) | $675,106 | $1,682,095 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | For the first 6 months: 2.75% of gross revenues. Beginning the 7th month through the 12th month: 5.5% of gross revenues. Beginning the 13th month after the franchised business opens through the end of the term of the Franchise Agreement, franchisees will pay the greater of $1,000 or 5.5% of gross revenues. |
| Brand Building Fund Contribution | Currently a minimum of $200 a month. The franchisor reserves the right to increase up to 2% of monthly gross revenues. |
| Technology Fee | Then-current fee (currently $170 per month). |
| Grand Opening Advertisement | Currently a minimum of $15,000. |
| 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 | If franchisees fail to obtain insurance, the franchisor may obtain insurance for them, and they must reimburse the cost of insurance premiums and any additional cost incurred by the franchisor. |
| 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). |
| Annual Conference Fee | Then-current fee (currently $750 - $950 per person). Non-attendance fee is currently $2,000. |
| Inspection and Testing | The costs the franchisor incurs in testing/inspecting the franchisee’s proposed product/supplier (estimated to be between $100 to $500). |
| Resale Consulting Fee | $7,500 |
| 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. |
| Late Fee for Required Payments | $50 per day. |
| Failure to Submit Required Report Fee | $100 per occurrence and $50 per day. |
| Non-Compliance Fee | 2.5% of gross revenues. |
| 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 Franchise Fee | 15% of the then-current initial franchise fee. |
| Transfer Fee | $15,000 plus any broker fees related to the transfer. |
| Suite Relief Fund | $50 per month. |
| Early Termination Damages | Amount varies. |
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