Sola Salon Lease Agreement Explained
A Sola Salon lease agreement is a legally binding document between Sola Salon Studios and each beauty professional that leases a salon suite. The lease outlines the rights and responsibilities of both parties, as well as the terms and conditions of occupancy. It is essential to understand the lease before signing it, as it will affect your business operations and financial planning.
The primary purpose of a Sola Salon lease agreement is to establish the terms of the relationship between Sola Salon Studios and the lessee. This includes the length of the lease, rent payment terms, and any other fees associated with the use of the salon suite. The lease also details the requirements for both parties, such as insurance coverage and maintenance responsibilities.
A Sola Salon lease agreement is crucial for salon professionals renting a space at Sola Salon Studios because it protects both the lessee and the studio owner . A lease agreement contains specific details regarding your business, including the:
Additionally, the lease will clarify the dispute-resolution process in case there are any issues between the owner and the studio. While your relationship with the Sola Salon owner may start off friendly with good rapport, issues can arise. The contract helps solve misunderstandings and any potential issues that would arise during your work.
Having a commercial lease template for your nail salon gives you a chance to create your own set ‘rules’ in the new space you work in. House rules typically involve policies related to working hours, cancellation policies and guest/dog policies, which are subject to change and are often informal agreements between the owner and the staff. When you have your own store rules, however, you are able to enforce your own policies regarding the staff members working in your salon suite.
Essentials of a Sola Salon Lease Agreement
While much will depend on what you can negotiate with the landlord, a Sola Salon lease agreement typically includes the following components:
Rent Terms
The rent section states the amount of money you have to pay, how often you have to pay it, and any other related payment obligations. For instance, you might have to pay a common area maintenance fee, a tax or utility surcharge, or an annual escalator clause. This section might also talk about a late charge, interest on the late charge or cost of collection, and the handling of rent checks.
Salon Use Specifications
This section confirms that you’re only allowed to conduct your specified salon use in your studio, and you can’t change your business type without the landlord’s written consent. There might also be language about your ability to use facilities such as restrooms, break rooms, and event spaces and the rules for behavior in these shared areas.
Lease Duration
The lease duration section tells both you and the landlord how long you’re committed to the agreement. There’s often no requirement for how long the lease term must be, but most salon owners find the three-year mark works best for them. There’s probably a mechanism for renewing the lease as well, whether it’s a one-time renewal or the ability to renew every year for up to five additional years.
Owner Obligations
The owner obligations are specific duties and responsibilities both you and the landlord have to fulfill, such as paying rent, giving notice to renew, obtaining insurance, and using the premises only for its agreed-upon purpose. There might also be a section about fixtures and how they become personal or real property when you place or attach them to the studio space.
How To Download It and Read it as a PDF
Removing these particular words from your vocabulary is a critical part of negotiating your Sola salon lease. Without them, you risk paying much more than you should on your lease with Sola Salon.
When you want to read through the Sola Salon lease agreement in detail, sitting down with a print copy is a time-consuming process. However, when you convert your Sola Salon lease agreement to a PDF format, the entire process becomes much more streamlined. You’ll probably discover that the entire leasing agreement is actually much longer and much more complex than you personally realized prior to this in-depth look at the agreement.
You can access the Sola Salon lease agreement in PDF format specifically within your Sola Salon Tools Online portal. Locate the "Documents" tab on the left side of your screen and click it. A new menu will pop up in the right-hand corner of your screen. Choose the "Document Library" option. You’ll be taken to the Document Library. Click the plus sign next to the Documents option to expand the menu and reveal a "Lease Agreement" tab. On the right-hand side of the screen, you’ll have the option to download a PDF version of the entire Sola Salon lease agreement.
Once the document downloads, you can pull it up on your phone, tablet, or computer and use it to read through the Sola Salon lease agreement in detail. Through this process, you’ll begin to gain a better understanding of all the details contained in your lease.
Common Conditions To Be Aware Of
Beyond the standard terms you’ll find in any commercial real estate lease (rent, tenancy of space, terms of default, etc.), Sola Salon leases contain several specific provisions which aren’t always tenant-friendly. Take a close look at the following clauses:
Termination for Convenience – both Sola Salon and you (the lessee) must have three months’ notice should either party wish to voluntarily terminate the lease.
Renewal Terms – the lease is for an initial term of two years and can be renewed by any party for an additional two years at the same rate.
Late Rent – if rent is not received by the landlord four days after the due date, it is considered late and incurs its regular fee of $50 plus 5% of the monthly rent amount.
Security Deposit – the landlord may charge a one-month security deposit as well as a non-refundable $49 set-up fee.
Authorized Personnel – no more than two representatives may represent the tenant unless a separate authorization form is filed with the landlord and the tenant wins a legal dispute against the landlord.
Alterations and Signs – the tenant shall not be permitted to install or use any sign or allowance on the premises without obtaining permission from the landlord , which can be granted or denied at the landlord’s sole discretion. However, the clause goes on to say that landlord shall not unreasonably withhold or delay permission to alter the space.
Damage – the tenant agrees to be wholly responsible for any damage to the premises, regardless of fault (unless due to fire, flood, war, acts of God or other factor outside of the tenants control). In addition, they must pay for any loss the landlord may incur should it sell the property "in order to move in a prospective buyer."
Liability – the landlord claims no liability for personal injury or other damages caused to either the tenant or any guests. Tenants are recommended to carry liability insurance.
Early Termination – in the event the tenant chooses to terminate this lease before its expiration, they will be obliged to pay the total balance owed on their lease (rent and all expenses through the lease term), and if they provide notice to terminate less than 30 days from the first of the following month they will owe two times the pro-rated lease amount. In addition, any unsold retail product must be returned to the landlord and any marketing materials promoting the salon must be removed from all sale platforms (i.e. social media.)
Strategies to Negotiate Your Lease Agreement
Rent increases and rent adjustments are important aspects of any lease agreement that can be negotiated by the client. When the salon operator has a strong business history in another location, and intends to replicate the same success in this new location, the rental amount and increase could be positioned in order to recognize the operator’s business experience, and to position the business from a future security basis. In addition, if the proposal is for an operator who is relocating her business, the client may consider negotiating for a limited period in which the operator has the ability to increase rents without restriction. For example, 3% no matter what the increase in cost of living. A client should consider whether she would prefer to exchange the lower minimum rent for a higher service charge rate.
There are many changes that a client can request in the agreement that would benefit their business. Many of the provisions are negotiable. Some negotiable provisions may include provisions regarding service schedule, sales charges for rent, indemnification, insurance, limitation of liability, rights of first offer, dispute resolution process, and assignment and sublease. Keep in mind that a client may be able to negotiate for a credit towards corporate training. This practice is not available with other salon franchises. The client must also make sure that the client will have the right to make any improvements to the shop and the premises.
Certain definitions are important and negotiable. The definition of service schedule, which many may consider as the days in which the business will be open, is crucial to understanding what the clients’ obligations are under the agreement. It is essential for an operator to agree to the schedule, even if it is subject to negotiation. A discussion regarding having a procedure to send out emails or a phone call to the clients prior to not opening is recommended.
The franchisee in several salon franchises has a right to make decisions related to the type and frequency of training. The right of first offer is an opportunity for a franchisee to renew its existing lease or relocate within the same shopping center at market rates. The right of first offer allows tenants to negotiate with the landlord before other potential tenants. Many times the lease language will indicate that the landlord has the right of first offer or first opportunity to rent to existing tenants. Clients will need to make a choice regarding whether they would prefer to pay the "wages" of trainer and to be able to receive training on a corporate level, or whether the clients would be able to manage the quality control aspect of training and maintain control over the quality of their own operation. Since the Sola Salon concept encourages a high level of customer service and quality control, if a client is willing to take on that responsibility, she should be able to negotiate during the selection process and discuss the option of foregoing some of her initial franchise costs, in exchange for this type of right.
Since the actual location is selected by Sola, the location must be approved by the client, and the client should have the opportunity to visit the location prior to signing the lease agreement. Sola could be negotiating with more than one person for the same space. Most leases have a specific period for which the client must approve the lease. In the event that the lease is not approved by the client, Sola will usually reimburse the client for all expenses.
The Role of Your Lawyer
Signing a Sola Salon lease agreement involves various legal considerations, not least of which is the legality of the agreement itself and the obligations that are imposed on both the lessee and the landlord. In the case of salon suite rentals, you are entering into an agreement with another business that you are likely not fully aware of. It is imperative that you review the Sola Salon lease agreement prior to signing and seek professional advice regarding making changes to the contract and understanding any obligations it may impose on you.
Sola Salon leases vary depending on the individual business owner and the type of salon or services offered by the owner . For example, some leasers require an exclusive right to the premises, while others place limits on what services you are or are not allowed to perform. When it comes to the rental agreement, your rights as well as the rights of the business owner may be limited, so it is recommended that you seek a legal review of the lease agreement prior to signing. Doing so will ensure that you have a full understanding of the obligations involved with signing the lease and – if necessary – you may also be able to request changes to the contract through your lawyer.