Salon Rental Agreement
Salon Rental Agreement
This Salon Rental Agreement ("Agreement") is made and entered into as of [Insert Date], by and between [Your Company Name] located at [Your Company Address] ("Lessor"), and [Stylist Name], an independent stylist doing business as [Business Name] ("Lessee").
WHEREAS, Lessor desires to lease to Lessee, and Lessee desires to lease from Lessor, certain space within [Your Company Name] under the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
I. Premises Description
The leased premises consist of Station Number 3, located within [Your Company Name] at [Your Company Address]. This space includes one stylist chair, one hair washing station, and associated cabinetry for storage of styling tools and products.
II. Term of Lease
This Agreement is effective from [Start Date], and shall continue until [End Date]. The Agreement will automatically renew for successive one-year terms unless either party provides written notice of non-renewal at least 30 days prior to the end of the current term.
III. Rental Payment
A. Monthly Rent: Lessee shall pay to Lessor a monthly rent of $1,200. Rent is due on the first day of each month and is payable to [Lessor Account].
B. Late Payment: If rent is not paid within five (5) days after the due date, a late fee of $50 will be incurred. Continued failure to pay rent may result in termination of this Agreement as outlined in Section X.
IV. Deposit
A. Security Deposit: At the time of signing this Agreement, Lessee shall pay a security deposit of $2,400, equivalent to two months’ rent. This deposit will cover damages or unpaid rent. It will be held by Lessor and returned to Lessee within 30 days of the termination of this Agreement, subject to the condition of the premises and fulfillment of the rental obligations.
B. Use of Deposit: The deposit shall not be considered as the last month's rent unless specifically agreed in writing by Lessor. Any deductions for repairs or unpaid rent will be itemized and provided to Lessee in a written statement at the end of the lease term.
V. Use of Premises
A. Permitted Use: The premises shall be used exclusively for the purpose of providing hair styling services, including cutting, coloring, and styling hair. The use of the premises for any other purposes, including but not limited to, the sale of beauty products, without prior written consent from Lessor, is strictly prohibited.
B. Compliance with Laws: Lessee shall comply with all local, state, and federal laws and regulations applicable to the operation of a hairstyling business. This includes maintaining all necessary licenses and certifications required for performing beauty services.
VI. Utilities and Services
A. Utilities Provided by Lessor: Lessor shall be responsible for all utilities associated with the premises, including water, electricity, and heating/cooling. These utilities are included in the rental payment specified in Section III.
B. Lessee's Responsibilities: Lessee is responsible for their own telephone and internet services, including the installation and monthly service fees. Lessee must coordinate installation with Lessor to ensure minimal disruption to the salon operation.
VII. Shared Areas
A. Accessibility and Use: Lessee shall have access to shared areas of the salon, including the waiting area, restrooms, and break room. These areas are to be used by Lessee, their clients, and staff as needed during business hours.
B. Maintenance of Shared Areas: Both Lessor and Lessee are responsible for maintaining the cleanliness and order of shared areas. Specific responsibilities include disposing of trash appropriately and reporting any damages or necessary repairs to Lessor immediately.
C. Decor and Advertising: Any changes to the decor of shared areas or the placement of advertising materials must receive prior written approval from Lessor. Lessee is permitted to display their business name and services offered within their designated station area only.
VIII. Equipment and Furnishings
A. Equipment Provided by Lessor: Lessor will provide the basic salon equipment necessary for hair styling services, including a styling chair, hair washing station, and a work cabinet. These items remain the property of Lessor and must be maintained in good working condition by Lessee.
B. Lessee's Equipment: Lessee is permitted to bring in additional personal equipment necessary for their services, provided it does not interfere with the salon operations or cause safety hazards. Lessee must notify Lessor of any significant equipment changes within the premises.
IX. Insurance and Liability
A. Liability Insurance: Lessee shall secure and maintain a liability insurance policy with a minimum coverage of $500,000 per occurrence and $1,000,000 aggregate, which must include general liability and professional liability coverage. Lessor must be named as an additional insured on the policy.
B. Property Insurance: Lessee is responsible for obtaining insurance to cover their own equipment and personal property against theft, damage, or loss. Lessor will not be liable for any damage or loss to Lessee's personal belongings.
C. Indemnification: Lessee agrees to indemnify and hold harmless Lessor from any claims, damages, losses, liabilities, and expenses arising from Lessee's use of the premises, except for those resulting from Lessor’s gross negligence or willful misconduct.
X. Termination Conditions
A. Notice of Termination: Either party may terminate this Agreement by providing 60 days written notice to the other party. The notice must be delivered via certified mail or personally delivered to ensure receipt.
B. Early Termination by Lessee: If Lessee terminates the Agreement before the end of the lease term, Lessee remains responsible for all rent payments due until the lease term expires or until the space is re-leased, whichever occurs first.
C. Termination for Breach: In the event of a breach of any terms of this Agreement by either party, the non-breaching party shall have the right to terminate the Agreement immediately upon providing written notice. Breaches requiring immediate termination include, but are not limited to, non-payment of rent, illegal activities, or significant damage to the premises.
XI. Dispute Resolution
A. Mediation: In the event of a dispute arising from or related to this Agreement, the parties agree to engage in mediation efforts before resorting to arbitration or litigation. Mediation shall be conducted by a mutually agreed-upon mediator within 30 days of written notice by either party of the dispute.
B. Arbitration: If mediation fails to resolve the dispute within 60 days, either party may initiate binding arbitration as the sole means to legally resolve disputes under this Agreement. Arbitration shall be conducted in accordance with the rules of the American Arbitration Association.
XII. Miscellaneous Provisions
A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State where the salon is located.
B. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions, agreements, or understandings of any kind.
C. Amendments: Any amendments to this Agreement must be in writing and signed by both parties.
D. Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will continue in full force and effect.
E. Notice: All notices under this Agreement must be given in writing either by email, certified mail, or personal delivery, and will be effective upon receipt.
Signatures
This Agreement is executed in duplicate, with each party retaining one copy. By signing below, each party warrants that they have the authority to enter into this Agreement and have done so voluntarily.
Lessor
[Name]
[Date]
Lessee
[Name]
[Date]
