Suite Pro Election & Franchisee Income Protection

11.0 Floor Rent Override Model

11.1 Purpose and Scope

This clause establishes the official Floor Rent Override Model for Melanin Magic Suites™. It:

• Guarantees a baseline income for Franchisees
• Gives Suite Pros the option of fixed rent or revenue share
• Provides a subsidy system for Franchisees during Suite Pro hardship (if approved)
• Enforces multi-level accountability through Regional Licensees and HQ
• Prepares override enforcement for future CHLOM smart contract automation

11.2 Suite Pro Payment Election

11.2.1 Election Requirement

All Suite Pros must elect a payment model during onboarding, defaulting to Floor Rent if no election is submitted.

11.2.2 Election Types

11.2.2.1 Floor Rent Model

• Suite Pro pays a fixed monthly rent, set by Franchisee
• Suite Pro retains 100% of service revenue
• Franchisee retains 100% of Floor Rent
• No override payouts are triggered
• Suite Pro becomes eligible for hardship assistance (Section 11.4)

11.2.2.2 70/30 Revenue Share Model

• Suite Pro pays 30% of gross service revenue (via ThriveSeat tracking)
• Suite Pro retains 70%
• The 30% share is split as follows:

• Overrides are automatically processed and logged via ThriveSeat and CrownLytics

11.3 Model Transition Policy

11.3.1 Switching Between Models

• Suite Pros may switch models only by written request
• Transition requires Franchisee approval and HQ review
• Franchisees are not required to offer both models simultaneously
• All approvals, transitions, and notices must be logged via the Collab Portal

11.4 Hardship Assistance for Floor Rent Model

11.4.1 Eligibility Criteria

To qualify for hardship relief, Suite Pro must:

• Be in good standing for 90 consecutive days
• Submit verifiable proof of hardship (illness, bereavement, income loss)
• File request through the Collab Portal using the designated Hardship Form

11.4.2 Assistance Tiers

11.4.3 Approval Process

• Requests are first reviewed and approved by the Franchisee
• If declined, requests may be escalated to the Regional Licensee
• If declined again, final escalation may be made to CrownThrive HQ
• All decision logs and actions are recorded in the Collab Portal

Note: HQ serves as the last point of escalation, reinforcing local leadership accountability.

11.4.4 Franchisee Subsidy

• If hardship is approved, Franchisee receives 50% of the Suite Pro’s Floor Rent from HQ
• Remaining balance is credited or deferred as outlined in the relief terms
• Subsidies are dispersed monthly and tied to Franchisee compliance standing

11.5 Compliance, Auditing, and Enforcement

11.5.1 Monitoring

• All override payouts and hardship adjustments are recorded in:
• ThriveSeat (real-time booking + revenue tracking)
• CrownLytics (suite-by-suite reports)
• Collab Portal (contractual history and request management)

11.5.2 CHLOM Enforcement

Upon Phase 2 of CHLOM deployment:

• Smart contracts will enforce override routing and hardship approval history
• All subsidy flows will be programmatically traceable and locked via CHLOM Fingerprint ID

11.5.3 Auditing Triggers

Franchisees will be audited if:

• Flagged for non-compliance by HQ
• Exceed 3 hardship subsidies within any rolling 12-month period
• Are reported for override mismanagement via internal review

Audits are conducted by CrownThrive HQ and CHLOM Risk Engines and may result in:

• Subsidy freeze
• Override redistribution
• Suspension of new Suite Pro onboarding until cleared

11.6 Legal Enforcement

• This clause is enforceable under the MM Suites Franchise Agreement and Suite Pro Contract
• All Franchisees and Suite Pros agree to this override structure as a binding condition of participation
• CrownThrive LLC may update this section with proper notice and version control published in the Collab Portal and Help Center