What rights does the Franchisor have as a third-party beneficiary of the lease for a My Salon Suite franchise?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
of assignment in accordance with this Addendum, Franchisor has no obligations, liabilities, or responsibilities under the Lease of any kind, including, without limitation, as a guarantor or indemnitor of Tenant's obligations to Landlord. Tenant represents that, before the Effective Date, it has not entered into an agreement to assign its right, title, and interest in and to the Lease to any other person.
- C. Use of Property. During the term of the Lease, Tenant shall use the Premises solely for the operation of a Franchised Business that subleases/rents studio space and provides certain other authorized services/products to third-party salon professionals in accordance with the requirements of the Franchise Agreement, unless Tenant and Landlord obtain Franchisor's prior written consent to another use.
- D. Franchisor's Right of Entry. Franchisor may enter the Premises at any time to inspect Tenant's operations and engage in all activities expressly permitted by the FranchiseAgreement.
- E. Notices to Franchisor. Landlord shall serve Franchisor with a copy of any notice of default, breach, or termination of Lease at the same time that Landlord serves Tenant with such notice.
- F. Default by Tenant; Franchisor Opportunity to Cure.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, the franchisor, as a third-party beneficiary to the lease agreement between the franchisee (Tenant) and the landlord, possesses specific rights designed to protect its interests. My Salon Suite's approval of the franchise location is contingent upon the landlord agreeing to include certain provisions in the lease that benefit the franchisor. These provisions ensure that My Salon Suite is informed of any issues that may arise and has the opportunity to protect its brand and system.
Specifically, the landlord is obligated to provide My Salon Suite with copies of any notices of default, breach, or termination of the lease at the same time such notices are given to the franchisee. This ensures My Salon Suite is promptly aware of any potential problems that could jeopardize the franchisee's operation and, by extension, the reputation of the My Salon Suite brand. Furthermore, the landlord must allow My Salon Suite an opportunity to cure any breach or default by the franchisee before terminating the lease. This cure period must be no less than the cure period extended to the tenant plus an additional ten days, with a minimum cure period extended to the franchisor of at least 30 days total.
My Salon Suite's right to cure the franchisee's default provides a critical safeguard. If My Salon Suite chooses not to cure the default within the specified cure period, the landlord is then free to terminate the lease, but will have no remedy against the franchisor. Additionally, My Salon Suite has the right to enter the premises at any time to inspect the franchisee's operations and engage in activities permitted by the Franchise Agreement. These rights collectively enable My Salon Suite to maintain standards and protect its brand integrity, even if the franchisee faces difficulties. These stipulations are put in place to ensure the continued operation and brand consistency of My Salon Suite franchises.