What exhibit number is the Development Agreement for Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
greement**
In addition to signing a Franchise Agreement, if you want to develop more than one Store, you must also sign a development agreement (the "Development Agreement") under which we grant you the right, and you accept the responsibility, to develop a specified number of Cost Cutters Stores in a Designated Market Area ("Development Area"). A copy of our Development Agreement is attached as Exhibit E. Under the Development Agreement, you must open the agreed-upon number of Cost Cutters Stores ("Minimum Development Quotas"), within specified period of time ("Development Periods"). If
you fail to do so, your Development Agreement and Franchise Agreement will either automatically expire or be subject to termination by The Barbers, depending on your Store development commitment (See Item 12).
The Barbers currently grants development rights for three ("3-Store"), six ("6-Store"), or multiple stores under the "Fast Start Program". If you acquire the right to develop just one Cost Cutters Store, you will sign a Franchise Agreement for that Cost Cutters Store. If you acquire 3-Store or 6-Store development rights under the Fast Start Program, you will concurrently sign the Development Agreement and the Franchise Agreement for the first Store to be developed. You sign The Barbers' then current standard Franchise Agreement for each subsequent Cost Cutters Store you open according to the Development Agreement.
**c.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, the Development Agreement is included as Exhibit E. If a prospective franchisee is interested in developing more than one Cost Cutters Family Hair Salon location, they must sign a Development Agreement. This agreement grants the franchisee the right and responsibility to develop a specific number of Cost Cutters Family Hair Salon stores within a designated market area.
The Development Agreement also stipulates that the franchisee must open an agreed-upon number of Cost Cutters Family Hair Salon stores within a specified time frame. Failure to meet these minimum development quotas could lead to the expiration or termination of both the Development Agreement and the Franchise Agreement, as determined by The Barbers.
Cost Cutters Family Hair Salon currently grants development rights for three or six stores under the Fast Start Program. Franchisees who acquire the right to develop a single Cost Cutters Family Hair Salon store will sign a Franchise Agreement. Those acquiring 3-store or 6-store development rights under the Fast Start Program will sign both the Development Agreement and the Franchise Agreement for the first store to be developed. For each subsequent Cost Cutters Family Hair Salon store opened under the Development Agreement, the franchisee will sign The Barbers' then-current standard Franchise Agreement.