Can a Cost Cutters Family Hair Salon franchisee relocate their store?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
raining, and Customized Workshops. These programs are offered either at the Franchised Location or at various regional locations or online.
ITEM 12 TERRITORY
Franchise Agreement
You will operate the Cost Cutters Store at an approved location, and that approved location may be in a Walmart store. You may operate the Cost Cutters Store only at the site we approve. You receive no territorial rights. You may not relocate the Cost Cutters Store. Cost Cutters reserves the right to offer Cost Cutters franchises at approved locations outside Walmart stores. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You do not receive an exclusive territory or area when granted a single Cost Cutters franchise.
Source: Item 12 — TERRITORY (FDD pages 52–55)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, franchisees are not permitted to relocate their store. The FDD states that a franchisee must operate their Cost Cutters Family Hair Salon at a location that Cost Cutters Family Hair Salon approves.
This restriction means that franchisees cannot independently decide to move their business to a different location, even if they believe it would be more profitable. The initial site selection is critical, as the franchisee is bound to that specific location unless Cost Cutters Family Hair Salon approves an exception, which is not guaranteed. This lack of flexibility could pose a challenge if the area around the approved location deteriorates economically or if a better opportunity arises elsewhere.
Furthermore, the document specifies that Cost Cutters Family Hair Salon reserves the right to offer franchises at locations outside Walmart stores. The franchisee will operate their Cost Cutters Family Hair Salon at a site that Cost Cutters Family Hair Salon first accepts and will sublease that site from their affiliate unless Cost Cutters Family Hair Salon approves a location outside of a Walmart store, in which case, they may require the franchisee to lease directly from the landlord. This highlights the importance of thoroughly researching and understanding the location approval process and the terms of the lease agreement before committing to a Cost Cutters Family Hair Salon franchise.