Salon Equipment Lease Agreement
Salon Equipment Lease Agreement
This Salon Equipment Lease Agreement ("Agreement") is made and entered into as of [Date], by and between [Your Company Name], with a principal place of business located at [Your Company Address] ("Lessor"), and [Lessee Name], with a principal place of business located at [Lessee Address] ("Lessee").
WHEREAS, the Lessor is the lawful owner of certain salon equipment more specifically described in Attachment A to this Agreement ("Equipment"); and
WHEREAS, the Lessee desires to lease the Equipment from the Lessor for use at the Lessee’s salon located at the aforementioned address, and the Lessor agrees to lease the Equipment to the Lessee on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
I. Lease Term
A. Duration: The lease term of this Agreement shall commence on the [Start Date], and shall terminate on the [End Date], unless sooner terminated pursuant to the terms herein or extended by mutual written agreement of the parties.
B. Renewal Option: The Lessee shall have the option to renew this Agreement for an additional period of two years upon the same terms and conditions, provided that the Lessee gives written notice to the Lessor of its intention to renew at least 90 days prior to the expiration of the initial term.
II. Lease Payments
A. Monthly Rent: The Lessee agrees to pay the Lessor a monthly lease payment of $500 for the use of the Equipment. The first payment shall be due on the [Date], and subsequent payments shall be due on the first day of each month thereafter.
B. Late Payments: If any lease payment is not made within 10 days after its due date, the Lessee shall pay a late fee of $50 per day for each day the payment is late.
C. Security Deposit: Upon execution of this Agreement, the Lessee shall pay to the Lessor a security deposit of $1,500. This deposit will be held by the Lessor as security for the performance of all the Lessee’s obligations under this Agreement and shall be refunded to the Lessee within 30 days after the expiration or earlier termination of this Agreement, less any amounts due to the Lessor.
III. Use of Equipment
A. Permitted Use: The Equipment shall be used solely for the purpose of providing salon services at the Lessee’s business premises. The Lessee shall not use the Equipment for any unlawful purpose or in any manner inconsistent with the manufacturer's instructions.
B. Prohibited Actions: The Lessee shall not modify, alter, or attach anything to the Equipment without the prior written consent of the Lessor. The Lessee shall be responsible for any damage to the Equipment resulting from unauthorized modifications or alterations.
C. Compliance with Laws: The Lessee agrees to comply with all applicable laws, ordinances, and regulations pertaining to the use, maintenance, and operation of the Equipment. The Lessee shall also be responsible for obtaining any necessary permits or licenses required for the operation or use of the Equipment at the Lessee's premises.
IV. Maintenance and Repairs
A. Lessee's Responsibilities: The Lessee shall be responsible for the regular maintenance and upkeep of the Equipment to ensure it remains in good working condition, consistent with the manufacturer's specifications. This includes routine cleaning and servicing as recommended by the manufacturer.
B. Repairs: Should the Equipment require repair due to normal wear and tear, the Lessee shall notify the Lessor immediately. The Lessor will arrange for the repair of the Equipment within 14 days of notification at the Lessor's expense. If repairs are due to misuse or negligence by the Lessee, the Lessee will be responsible for the cost of such repairs.
V. Delivery and Installation
A. Delivery: The Lessor shall deliver the Equipment to the Lessee’s premises on or before the 30th of [Date]. The Lessor is responsible for the cost of delivery.
B. Installation: The Lessor shall oversee the installation of the Equipment at the Lessee's premises, to be completed by [Date]. The Lessee shall provide necessary access to the premises for installation purposes. The cost of installation shall be borne by the Lessor.
VI. Ownership and Title
A. Retention of Ownership: The Lessor retains full ownership and title to the Equipment throughout the term of this Agreement. The Lessee acquires no property rights or other rights in the Equipment, except as specifically granted under this lease.
B. Prohibition on Transfer: The Lessee shall not sell, lease, sublease, assign, encumber, or otherwise transfer the Equipment or any interest therein without the prior written consent of the Lessor.
C. Return of Equipment: Upon termination or expiration of this Agreement, the Lessee agrees to return the Equipment to the Lessor in the same condition as received, normal wear and tear excepted. The Lessee shall be responsible for any costs associated with returning the Equipment to the Lessor's specified location.
VII. Insurance and Liability
A. Insurance Coverage: The Lessee shall secure and maintain insurance coverage for the Equipment with a minimum coverage amount of $20,000 against theft, loss, damage, or destruction. The insurance policy must name the Lessor as an additional insured and loss payee. Proof of insurance must be provided to the Lessor prior to the delivery of the Equipment and upon renewal of the policy, which should occur annually.
B. Liability: The Lessee shall be liable for any damage to the Equipment not covered by insurance, except for normal wear and tear. The Lessee shall indemnify and hold the Lessor harmless from any claims, damages, or expenses arising out of the Lessee’s use, operation, or possession of the Equipment.
VIII. Default and Termination
A. Events of Default: An event of default shall occur if the Lessee fails to make any lease payment within 15 days after its due date, fails to maintain insurance, or materially breaches any other provision of this Agreement and fails to cure such breach within 30 days after receiving notice from the Lessor.
B. Termination upon Default: Upon occurrence of an event of default, the Lessor may terminate this Agreement immediately and take possession of the Equipment. The Lessee shall be responsible for all costs associated with the return of the Equipment.
IX. Dispute Resolution
A. Mediation: In the event of any dispute under this Agreement, the parties agree to first attempt to resolve the dispute through mediation facilitated by a mutually agreed-upon mediator in [City/State].
B. Binding Arbitration: If mediation fails to resolve the dispute, the parties agree to submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall take place in [City/State], and the decision of the arbitrator shall be final and binding on both parties.
X. Miscellaneous Provisions
A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
B. Notices: All notices or communications required or permitted under this Agreement shall be in writing and shall be delivered by hand, sent by certified mail, or emailed to the parties at their respective addresses specified in the preamble or to such other address as either party may specify in writing.
C. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, whether written or oral, relating to the subject matter of this Agreement.
Signatures
In witness whereof, the parties have executed this Salon Equipment Lease Agreement as of the date first above written.
Lessor
[Name]
[Date]
Lessee
[Name]
[Date]
