Who is responsible for selecting the site for a Cost Cutters Family Hair Salon franchise location?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
Accordingly, no provision of this Agreement may be construed to impose any obligation or responsibility on COST CUTTERS to locate or select a site for the Franchised Location.
The FRANCHISEE will not lease, purchase or otherwise acquire a site for the Franchised Location until: (1) the proposed site has been reviewed and approved in writing by COST CUTTERS for FRANCHISEE'S Franchised Location, considering all factors COST CUTTERS deems material in considering whether to approve such site for FRANCHISEE'S Franchised Location including accessibility, visibility, potential traffic flows, competition, other commercial, market, and demographic information and other factors COST CUTTERS deems relevant; and (2) COST CUTTERS has reviewed the Lease and determined whether FRANCHISEE will be required to sublease from COST CUTTERS or an affiliate.
The review of the site conducted by COST CUTTERS will not be deemed to be a warranty, representation or guaranty by COST CUTTERS that the site will be approved for FRANCHISEE'S Franchised Location or if the FRANCHISEE'S Cost Cutters Business is approved by COST CUTTERS and is opened and operated at that site, that it will be a financial success.
Notwithstanding anything to the contrary contained in this Agreement, the site for the Franchised Location may not be located within any location or premises owned or controlled by a national or regional mass merchandiser such as but not limited to Wal-Mart, Target, Venture or Costco.
- 21.2 STANDARD STORE LAYOUTS AND PLANS. After the Franchised Location has been leased or otherwise acquired in accordance with this Agreement, the FRANCHISEE will, within sixty (60) days of the date of this Agreement, provide COST CUTTERS with the following information for the Franchised Location: (A) a copy of the executed Lease and Lease Addendum signed by landlord (if applicable); (B) the store front elevation; (C) space documentation (size and lay-out); (D) location of the plumbing and electrical sources; (E) local signage requirements, laws and regulations; and (F) all other pertinent information.
Based upon the information provided by the FRANCHISEE, COST CUTTERS will provide approved store layouts and plans for the Franchised Location.
The FRANCHISEE will construct or remodel the Franchised Location in strict compliance with the store layouts and plans provided by COST CUTTERS.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, the franchisee is responsible for locating and acquiring a site for their franchised location. However, the franchisee cannot finalize the lease or purchase until Cost Cutters Family Hair Salon reviews and approves the proposed site in writing. Cost Cutters Family Hair Salon will consider factors like accessibility, visibility, traffic flow, competition, and market demographics when reviewing the site. Cost Cutters Family Hair Salon also needs to review the lease to determine if the franchisee will be required to sublease from them or an affiliate.
Cost Cutters Family Hair Salon's site review does not act as a guarantee that the site will be approved or that the Cost Cutters Family Hair Salon business will be financially successful at that location. The document also specifies that the franchised location cannot be within premises owned or controlled by national or regional mass merchandisers like Wal-Mart, Target, Venture, or Costco.
After the site is secured, the franchisee must provide Cost Cutters Family Hair Salon with detailed information about the location, including a copy of the executed lease, storefront elevation, space documentation, location of plumbing and electrical sources, and local signage requirements. Based on this information, Cost Cutters Family Hair Salon will provide approved store layouts and plans, which the franchisee must strictly follow during construction or remodeling. The franchisee is responsible for ensuring the location complies with these plans and all applicable laws.