My Salon Suite
Formerly known as Suite Management Franchising
Bottom line
- Total investment $675K – $1.7M including a $50K franchise fee, 2.8% ongoing royalty.
- Average unit revenue of $456K/year (median $440K). Estimated payback in 6.0 years.
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System growing at 31.0% CAGR over 3 years with 355 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one My Salon Suite unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 My Salon Suite units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $7.9M purchase
Total debt
$6.3M
SBA $3.9M + senior + seller note
Overview
About
My Salon Suite franchisees lease and operate independent salon suite spaces within larger salon buildings, renting individual rooms to independent beauty professionals (stylists, estheticians, nail technicians). Franchisees manage the leased suites, handle tenant relations, collect rent, and maintain the facility while beauty professionals operate independently within the space.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
My Salon Suite presents moderate-to-high risk due to high capital requirements, recent executive litigation, corporate financial ambiguity, back-loaded royalty structure, and unsubstantiated financial claims.
Score breakdown · what drove the 59 / 100 rating
- 01MINORHigh initial investment ($675K-$1.68M) with moderate unit growth (10.5% YoY) creates extended payback risk, especially given $1,000/month minimum royalty even in slow months
- 02HIGHSignificant litigation history: $8M settlement in Sept 2024 involving founder Brad Brutocao and key officers for breach of fiduciary duty raises governance and transparency concerns
- 03HIGH'Going Concern' status marked False suggests potential financial distress at corporate level, though contradicted by positive unit growth — requires clarification on corporate health
- 04MINORRoyalty structure heavily back-loaded: franchisees pay discounted rate (2.75%) only 6 months, then doubles to 5.5% with $1K minimum, creating cash flow cliff at month 12-13
- 05MEDMissing Item 19 (Financial Performance Representations): Average figures provided ($455K revenue, $194K net) lack substantiation, unit-by-unit breakdown, or timeframe — cannot validate true earning potential
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
56 numbers
One-time purchase · CSV download · Validation questions included
FDD download
My Salon Suite · FDD (2025) PDF