What exhibit number is the Cost Cutters Family Hair Salon Sublease?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
e by you will be an insignificant amount of the total purchases required to establish your Cost Cutters Business.
You must sublease from us any Cost Cutters located in a Walmart. The form of that sublease is included in Exhibit G to this disclosure document (the "Walmart Sublease"), that is subject to our Master Lease with Walmart that is included in Exhibit H to this disclosure Document (the "Walmart Master Lease"), including in many instances, a separate schedule to the Walmart Master Lease. Pursuant to our Walmart Master Lease, Walmart may not renew our lease, and thus we cannot renew your Walmart Sublease, if your sales fall below $150,000 per year or any other sales threshold designated by Walmart. Additionally, Walmart can compel us, and thus you, to remodel your Cost Cutters salon if Walmart deems it necessary for various reasons, including that Walmart remodeled the Walmart store and as a condition of renewal of your Walmart Sublease. If we approve
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the form of the sublease for Walmart locations is included as Exhibit G. Franchisees are required to sublease from Cost Cutters Family Hair Salon for any location within a Walmart. This sublease is subject to Cost Cutters Family Hair Salon's master lease with Walmart, which is included as Exhibit H.
This means that if a prospective franchisee is considering a location within a Walmart, they should carefully review Exhibit G to understand the terms and conditions of the Walmart Sublease. They should also review Exhibit H to understand the terms of the master lease between Cost Cutters Family Hair Salon and Walmart, as the franchisee's sublease is subject to that master lease.
It is important to note that Walmart has the right to not renew the master lease if the franchisee's sales fall below $150,000 per year or any other sales threshold designated by Walmart. Additionally, Walmart can require Cost Cutters Family Hair Salon, and thus the franchisee, to remodel the salon if Walmart deems it necessary. Therefore, franchisees need to be aware of these potential requirements and financial risks associated with operating a Cost Cutters Family Hair Salon in a Walmart location.