My Salon Suite Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$675,106 - $1,678,095
Franchise Fee
$25,000
Min Cash Required
$35,000
Total US Locations
355
Business Summary
My Salon Suite offers franchises for the operation of luxury turnkey salon suite studios. These studios provide a high-end environment for salon professionals to offer health and beauty services to their own clients. Franchisees lease and then convert approved locations into individual suites that they sublease to various salon professionals, such as hair stylists, massage therapists, estheticians, and nail technicians. Franchisees are also responsible for managing and maintaining these salon suites and common areas.
Corporate History
Suite Management Franchising, LLC (SMF) was formed as a Florida limited liability company on March 30, 2012, and began franchising My Salon Suite Businesses on July 1, 2012. SMF previously franchised Salon Plaza businesses from April 2015 until December 31, 2021, but no longer offers those franchises. SMF was acquired on June 25, 2021, by Suite Management Holdings, LLC (SMH), which later became a wholly-owned subsidiary of Propelled Brands Holdings, Inc. (PBHI) on December 28, 2021. On that same date, PBHI formed Propelled Brands Franchising, LLC, which now serves as SMF's immediate parent. SMF has affiliates that operate company-owned My Salon Suite Businesses, with some having been in operation since as early as 2010.
Financial Overview
Investment Range
$675,106 - $1,678,095
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$35,000
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$532,192
Equipment Costs (High)
$1,385,235
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Propelled Brands Franchising, LLC has received an unqualified audit opinion for its consolidated financial statements for the years ended December 31, 2024, and 2023, indicating that the financial statements present fairly in all material respects. The auditor's reports do not identify any conditions or events that raise substantial doubt about the company's ability to continue as a going concern. The company's financial statements reflect increases in both total assets and total liabilities from 2023 to 2024, with member's equity also increasing. Revenues show growth from $72,355,048 in 2023 to $98,190,208 in 2024, although net income decreased from $12,569,087 in 2023 to $9,668,250 in 2024.
Financing Details
My Salon Suite does not offer direct or indirect financing for new franchise businesses. However, for conversion franchisees who meet credit standards, My Salon Suite may finance a portion of the initial franchise fee. Specifically, if a conversion franchisee pays $15,000 of the initial franchise fee, My Salon Suite will finance the remaining $35,000. This loan is provided at 0% interest per annum, repayable over 36 months in monthly installments of $972.22. Payments are automatically debited from the franchisee's business checking account. A personal guarantee from the franchisee's principals is required, but no other security interest is needed. Franchisees may prepay the note in whole or in part without penalty.
Performance Metrics
Total US Locations
355
Franchised Units
304
Corporate Units
51
Avg Square Footage
6,664
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
1
Litigation Summary
My Salon Suite has one reported litigation case. In June 2020, a shareholder derivative lawsuit was filed against nominal defendant Floor & Decor and certain officers and directors, including John Roth and Brad Brutocao, alleging breach of fiduciary duty and unjust enrichment. A motion to dismiss the litigation was denied in December 2023. The parties amicably settled this dispute via a compromise and settlement order entered on September 19, 2024, with codefendants agreeing to pay an $8,000,000 settlement. My Salon Suite noted that John Roth and Brad Brutocao denied wrongdoing and had D&O insurance to cover their defense costs.
Bankruptcy History
On November 2, 2024, TGI Friday's Inc. filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. Jennifer Rote, who is currently My Salon Suite's General Counsel, served as TGI Friday's Inc.'s Senior Vice President and General Counsel and left the company in September 2024, prior to the filing of this petition. The case is currently pending.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement for two additional 10-year terms, My Salon Suite franchisees must provide written notice between 9 and 12 months before the current term expires. They must demonstrate the right to occupy and operate the approved location for the renewal term or secure a new approved site. All capital expenditures, including updates to hardware and software, must be completed to meet current System Standards for new franchisees. Franchisees must be in good standing, having substantially complied with all agreements and satisfied all monetary obligations to My Salon Suite, its affiliates, and approved vendors. Additionally, they must meet current franchisee qualifications, complete any required training, sign a general release, and pay a renewal franchise fee equal to 15% of the then-current initial franchise fee for a new franchised business.
Training & Support Program
Franchisor Assistance
My Salon Suite assists franchisees with pre-opening tasks such as evaluating proposed locations and designating a Protected Territory. They provide access to design standards and template architectural plans for constructing or remodeling the business. Franchisees receive lists of required items and Approved Vendors for equipment, signs, fixtures, and supplies. Initial training is provided through "My Salon Suite University" for up to two people, tuition-free, encompassing online/on-demand learning and mentor site visits. My Salon Suite approves all franchisee advertising and promotional materials, including grand opening campaigns. For ongoing support, the franchisor offers continuing consultation and advice via various communication channels and potential on-site visits. They also provide the electronic Franchise Operations Manual and its updates, approve or disapprove requests for non-approved products/services or alternative vendors, and administer the Brand Building Fund. My Salon Suite may conduct inspections, require attendance at additional training programs (some with fees), and host an annual conference (mandatory with a fee). They also maintain a brand website and may revise the System and develop new proprietary products/services.
Initial Training Hours
34
Training Location
Online/virtual and designated in-person locations
Ongoing Support
After opening, My Salon Suite provides continuing consultation and advice on managing and operating the business through telephone, fax, intranet, email, or on-site visits. They approve or disapprove all advertising and marketing materials. Franchisees receive ongoing access to the electronic Franchise Operations Manual, including updates and modifications. My Salon Suite also approves or disapproves franchisee requests for non-approved products or services and purchases from vendors not on the approved list. They administer the Brand Building Fund for system-wide marketing. The franchisor may require franchisees and designated managers to attend up to two days of additional training programs or refresher courses annually, which may incur tuition fees. My Salon Suite may also conduct inspections of the business to ensure compliance with System Standards and may revise the Operations Manual with new concepts and ideas. Additionally, they may create and develop new proprietary products and services that franchisees must sell.
Franchise Requirements
Ideal Candidate Profile
My Salon Suite requires its franchisees, or at least one of their principals if the franchisee is an entity, to personally supervise the day-to-day operations of the business and devote their best efforts to its management. If a manager is delegated these responsibilities, they must be approved in writing by My Salon Suite and successfully complete My Salon Suite University before assuming managerial duties. This implies that My Salon Suite seeks individuals with strong supervisory or management capabilities who can ensure efficient and high-quality operation of the business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Exclusive
Territory Size Requirements
My Salon Suite typically grants an exclusive Protected Territory defined as a 2-mile radius from the front door of the approved location. The exact boundaries can be narrowed or expanded based on location and demographics, potentially described by zip codes, streets, landmarks, and state or county lines. This territory may also overlap with another franchisee's Protected Territory in some cases. The continuation of this territorial exclusivity is not dependent on achieving a certain sales volume or market penetration.
Staffing Notes
My Salon Suite franchisees are responsible for hiring and supervising efficient, competent, and courteous employees and for setting their wages and incentives. The franchisor has no liability for employment decisions. The franchisee, or a designated manager, must personally supervise day-to-day operations. The business must always be staffed with at least one individual who has successfully completed My Salon Suite University. If a designated manager is appointed, they must be approved in writing, successfully complete initial training before assuming the role, and devote full-time efforts to the business without engaging in other activities without My Salon Suite's consent. Any new designated manager must be hired and trained within 30 days. All officers, directors, managers, and employees with access to confidential information must sign confidentiality and non-compete agreements.