What is the Cost Cutters Family Hair Salon subtenant required to do to comply with the Prime Lease?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
sdiction in the state or federal courts of Minnesota with respect to any litigation pertaining to this GUARANTY, and agrees that all litigation pertaining to this GUARANTY will and must be venued exclusively in Minnesota.
PERSONAL GUARANTORS
| 1. | The acknowledgments | made by the | FRANCHISEE contained | in Article 26 and | |---|---|---|---|---|
FRANCHISE DISCLOSURE DOCUMENT
EXHIBIT F: COST CUTTERS SUBLEASE
COST CUTTERS SUBLEASE
| 4. | The provisions | of Article 12 requiring | arbitration hearings | to take place | in | |---|---|---|---|---|---| | 4. | The provisions | of Article 23 requiring | arbitration hearings | to take place | in | 1.1 Grant of Sublease. Sublessor hereby subleases to Subtenant, and Subtenant hereby rents from Sublessor, all of the Leased Premises for the identical purposes and uses set forth in the Prime Lease pursuant to each and every term, covenant, condition and obligation imposed upon Sublessor pursuant to the Prime Lease except as such terms, covenants and conditions are specifically modified by this Sublease.
SUBLEASE; USE; TERMS
- 1.2 Compliance with Prime Lease. During the term of the Prime Lease, or any extension or renewal thereof, Subtenant covenants and agrees: (A) to perform and observe all of the terms, covenants, conditions and agreements of the Prime Lease designated therein to be performed by Sublessor as Tenant with respect to the Leased Premises during the term of this Sublease, to the extent that they are not modified or amended by this Sublease and any extension or renewal thereof; (B) that with respect to the Leased Premises, Subtenant shall not do or suffer or permit anything to be done which would constitute a default under the Prime Lease or might cause the Prime Lease to be canceled, terminated or forfeiture reserved or vested in Landlord under the Prime Lease; and (C) to indemnify and hold Sublessor harmless from and against any and all claims, liabilities, losses and damages of any kind whatsoever that Sublessor may incur by reason of, resulting from or rising out of a failure by Subtenant to comply with the provisions of this Sublease.
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, a subtenant must adhere to several requirements to comply with the Prime Lease. The subtenant must perform and observe all terms, covenants, conditions, and agreements of the Prime Lease that the sublessor (Cost Cutters Family Hair Salon) is designated to perform as the tenant. This applies to the leased premises during the term of the sublease, unless modified by the sublease itself. The subtenant must also ensure that their actions do not cause a default under the Prime Lease, which could lead to its cancellation or termination.
Furthermore, the Cost Cutters Family Hair Salon subtenant is responsible for indemnifying and protecting the sublessor from any claims, liabilities, losses, or damages resulting from the subtenant's failure to comply with the sublease provisions. This means that if the subtenant's actions or inactions lead to financial or legal repercussions for the sublessor, the subtenant is obligated to cover those costs. The sublessor also agrees not to waive, modify, amend, or surrender the provisions of the Prime Lease in any way that would negatively impact the subtenant's use of the leased premises, unless the subtenant provides prior written consent.
In the event of a default by the sublessor under the Prime Lease, the subtenant is required to step in and fulfill the sublessor's obligations directly to the landlord. This includes assuming, performing, and abiding by all terms, covenants, and conditions of the Prime Lease, including the payment of all amounts due or becoming due. Additionally, the subtenant must provide a written statement of its monthly gross sales to the sublessor by the fifth day of each month. This report is essential for calculating percentage rent and other financial obligations under the sublease. These measures ensure that the landlord's interests are protected and that the Cost Cutters Family Hair Salon location continues to operate smoothly.