Where is the Leased Premises for a Cost Cutters Family Hair Salon further depicted?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD 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. COST CUTTERS' review of the Lease prior to its execution will not be for the purpose of approving the legal aspects, economics or rental terms of the Lease. Accordingly, COST CUTTERS will have no responsibility to the FRANCHISEE with regard to the economics or legality or enforceability of the Lease. If FRANCHISEE requests and COST CUTTERS agrees to guarantee FRANCHISEE's lease obligations in any way (e.g., as tenant or guarantor), then COST CUTTERS reserves the right to charge FRANCHISEE a monthly fee of the amount by which twelve percent (12%) of FRANCHISEE's monthly gross sales exceeds FRANCHISEE's monthly lease payments for as long as such guaranty is in effect. COST CUTTERS has no obligation to guarantee FRANCHISEE's lease in any way, but if COST CUTTERS does, FRANCHISEE must pay such monthly lease guaranty fee.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the lease for the franchised location, referred to as the "Lease," is further detailed in Exhibit P, which contains a Lease Addendum.
Prior to executing the lease, a Cost Cutters Family Hair Salon franchisee must submit it to Cost Cutters Family Hair Salon for review. The lease must include the provisions outlined in the Lease Addendum in Exhibit P. It should also exclude radius restrictions and be conditional upon Cost Cutters Family Hair Salon's approval of the franchisee.
Additionally, the lease must grant Cost Cutters Family Hair Salon the right to enter the premises for inspections during business hours and the option to assume the lease for the remaining term if the franchisee is evicted or the agreement is terminated. Cost Cutters Family Hair Salon's review does not cover the legal or economic aspects of the lease, and Cost Cutters Family Hair Salon assumes no responsibility regarding the lease's economics, legality, or enforceability.