What does the Master Lease Agreement govern for a Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
ns contemplated hereby, including without limitation, all fees and expenses of agents, representatives, legal counsel and accountants.
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- Facsimile Signatures; Counterparts. This Agreement may be executed and delivered by electronic signature (e.g., DocuSign). The delivery of an executed copy of this Agreement or of any amendment hereto, made by facsimile or electronic transmission (e.g., DocuSign) or as a .pdf attachment to an email by any party to an authorized recipient of the other party hereto shall constitute effective delivery of such document by such transmitting party to such receiving party,
and any executed facsimile or emailed copy so delivered shall be deemed equivalent to an executed original. This Agreement and any amendments thereto may be signed in two or more counterparts, and all counterpart signatures, taken together, shall constitute one executed original.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
SELLER: REGIS CORP. THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC. BUYER: on its own behalf and on behalf of all of its Affiliates Print Name: Print Name:
EXHIBIT A The Stores
FRANCHISE DISCLOSURE DOCUMENT
EXHIBIT O: LEASE ADDENDUM
EXHIBIT O LEASE ADDENDUM
| This Lease Addendum (the "Addendum") is made as of the day of, _20, | |
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| by and between, as Lessor or | |
| Landlord ("Landlord") and as Lessee or Tenant ("Tenant"). |
WHEREAS, The parties hereto acknowledge and agree that Tenant is a party to a "Cost Cutters" hair salon franchise agreement (the "Franchise Agreement") with The Barbers, Hairstyling for Men & Women, Inc., a Minnesota corporation with its principal place of business at 3701 Wayzata Boulevard, Suite 500, Minneapolis, Minnesota 55416 (the "Franchisor"). Pursuant to the Franchise Agreement, Tenant agreed to cause the provisions contained in this Addendum to be made a part of the lease agreement between Tenant and Landlord, a copy of which is attached hereto and incorporated herein by reference (the "Lease").
WHEREAS, In order to induce Tenant to enter into the Lease, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree to the following additional terms and provisions of the Lease, and further agree that, to the extent that the terms and provisions of the Lease conflict with the terms and provisions of this Addendum, the terms and provisions of this Addendum shall control:
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- Notice of Default. Upon the occurrence of any default by Tenant under the terms and provisions of the Lease, Landlord shall concurrently give written notice of such default to Tenant at the address specified in the Lease and to Franchisor and its successors and assigns at the address set forth above or such other address as may be designated in writing by Franchisor.
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- Franchisor's Right to Enter Leased Premises. Franchisor shall have the right to enter the leased premises to conduct inspections at any time during regular business hours.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Lease agreement for a Cost Cutters Family Hair Salon, as referenced in the Addendum, outlines the terms and provisions between the tenant (franchisee) and the landlord. The Addendum modifies the original lease, and in case of conflicts, the Addendum's terms take precedence.
Cost Cutters Family Hair Salon, as security for the franchisee's performance, has the right to the Lease, which is incorporated by reference. If the Franchise Agreement is terminated, if the franchisee ceases business at the Franchised Location, or if the agreement expires without renewal, Cost Cutters Family Hair Salon has the option to assume the Lease for its remaining term under the original terms and conditions, including rental costs.
The franchisee must execute a UCC-1 Financing Statement to record Cost Cutters Family Hair Salon's security interest in the Lease. This assignment is perfected immediately, but Cost Cutters Family Hair Salon cannot enforce the Lease until an Event of Default occurs. After such an event, Cost Cutters Family Hair Salon can take possession by notifying the franchisee and landlord in writing, stating the assumption of the Lease, the date of possession, and agreement to be bound by the Lease terms going forward, along with an assignment form.