Does the Cost Cutters Family Hair Salon FDD include a Lease Addendum?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
22.9 LEASE ADDENDUM. The FRANCHISEE will secure the Landlord's written agreement to the provisions contained in this Article in the form of Lease Addendum attached as Exhibit "P" to the Cost Cutters Franchise Disclosure Document.
22.1 COST CUTTERS' REVIEW OF LEASE. Once a site for the Franchised Location has been accepted by COST CUTTERS, FRANCHISEE shall lease, purchase, or otherwise acquire possession of
the Franchised Location, provided that COST CUTTERS has the right and option to lease or to have an affiliate lease the Franchised Location directly from the landlord and to require the FRANCHISEE to sublease the Franchised Location from COST CUTTERS or one of its affiliates. The lease for the Franchised Location (the "Lease") will be submitted to COST CUTTERS by the FRANCHISEE for COST CUTTERS' review prior to execution of the Lease by the FRANCHISEE. The Lease must, at a minimum, contain (a) the provisions of the Lease Addendum in Exhibit P to the Cost Cutters Franchise Disclosure Document, (b) no radius restrictions, (c) and be conditional upon COST CUTTERS' approval of the FRANCHISEE, (d) give COST CUTTERS the right to enter the premises to conduct inspections at any time during regular business hours, and (e) the right, but not the obligation, to assume the Lease for the remaining term, in accordance with the provisions of this Article, if the FRANCHISEE is evicted by the Landlord or if this Agreement expires or is terminated by either COST CUTTERS or the FRANCHISEE for any reason prior to the expiration of the Lease, and (f) other reasonable terms required by COST CUTTERS including, without limitation the right to exercise options.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2024 FDD)
Yes, according to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, a Lease Addendum is included as Exhibit "P".
Specifically, the FDD states that franchisees must ensure the landlord agrees in writing to the provisions outlined in Article 22, using the Lease Addendum provided as Exhibit "P". This addendum is a standard form that modifies the lease agreement between the franchisee and the landlord to protect Cost Cutters Family Hair Salon's interests.
Furthermore, Cost Cutters Family Hair Salon retains the right to review the lease before it is executed by the franchisee. The lease must include the provisions of the Lease Addendum in Exhibit P, and give Cost Cutters Family Hair Salon the right to enter the premises to conduct inspections and the right to assume the lease if the franchisee is evicted or the agreement is terminated.