Under what terms can a Cost Cutters Family Hair Salon franchise be renewed or extended?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. Length of the | Article 2.1 | 15 Years from the date your salon opens | |
| franchise term | |||
| b. Renewal or extension of the term | Article 2.2 | Under terms offered to other franchisees at the time of reacquiring the franchise You may be asked to sign a current franchise agreement with materially different terms and conditions than your original agreement and the Continuing Fees on renewal will not be greater than the Continuing Fees that we then impose on similarly-situated renewing franchisees. | |
| c. Requirements for you to renew or extend | Article 2.3 | Give 180 days notice; satisfy all material requirements of your current Franchise Agreement; pay all amounts due to Cost Cutters; modernize your Franchised Location; be in a position to |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 59–65)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, the franchise term is 15 years from the date the salon opens. To renew or extend the franchise term, a franchisee must adhere to the terms offered to other franchisees at the time of renewal.
Cost Cutters Family Hair Salon may require franchisees to sign a current franchise agreement that includes materially different terms and conditions from the original agreement. However, the continuing fees upon renewal will not be greater than the continuing fees imposed on similarly situated renewing franchisees.
To successfully renew a Cost Cutters Family Hair Salon franchise, franchisees must provide 180 days' notice, satisfy all material requirements of their current Franchise Agreement, pay all amounts due to Cost Cutters, modernize their franchised location, and be in a financial position to continue operating the franchise.