Salon Licensing Agreement

This Salon Licensing Agreement ("Agreement") is made and entered into as of [Month Day, Year], by and between [Your Company Name], a corporation organized and existing under the laws of [State], with its principal place of business located at [Licensor Address] ("Licensor"), and [Business Name], a corporation organized and existing under the laws of [State], with its principal place of business located at [Licensee Address] ("Licensee").

WHEREAS, Licensor owns certain proprietary elements, including but not limited to trademarks, service marks, trade names, business methods, and other intellectual property (collectively, "Licensed Properties"), which are used in connection with the operation of salons;

WHEREAS, Licensee desires to obtain, and Licensor wishes to grant, a license to use the Licensed Properties in connection with the operation of a salon under the terms and conditions set forth herein;

WHEREAS, this Agreement will allow Licensee to operate under the branding and operational methods of Licensor, thereby expanding Licensor's brand into new markets.

1. Grant of License

1.1 Scope of License

The Licensor hereby grants to the Licensee a non-exclusive, non-transferable, and revocable license to use the Licensed Properties, which may include but are not limited to trademarks, trade names, service marks, and associated intellectual property. This license is granted solely for the purpose of operating a salon at the specified location, referred to herein as the "Premises."

1.2 Restrictions

This license is strictly limited to the Premises and does not confer any rights to the Licensee to sublicense, assign, or otherwise transfer the Licensed Properties to any third party. The Licensee is prohibited from using the Licensed Properties in any manner that is not expressly authorized under this Agreement, including but not limited to any geographical area beyond the Premises.

2. Term

2.1 Commencement and Duration

This Agreement shall take effect from the date first written above and, unless terminated earlier as provided herein, will continue for a period of [Specify Number] years ("Term").

2.2 Renewal Options

Upon nearing the end of the initial Term, the Licensee may be offered the option to renew this Agreement under terms to be negotiated at that time, subject to the approval and at the discretion of the Licensor. Any renewal will require a formal amendment to this Agreement and shall not be presumed to be automatic.

3. Royalty Payments

3.1 Payment Terms

In consideration for the licensing rights granted hereunder, the Licensee shall compensate the Licensor with a royalty fee. This fee shall be calculated as [Specify Percentage]% of the gross monthly revenue generated from the operations utilizing the Licensed Properties at the Premises.

3.2 Payment Schedule

Royalty payments are due on a quarterly basis and must be paid by the 15th day of the month following the end of each quarter. For example, royalties for the quarter ending March 31 must be paid by April 15.

3.3 Reporting and Auditing

To ensure compliance with this payment schedule, the Licensee is required to submit detailed quarterly revenue reports alongside the royalty payments. The Licensor reserves the right to audit the Licensee's financial records related to the use of the Licensed Properties to verify accuracy. Such audits will be conducted at the Licensor’s expense, provided that if discrepancies found exceed 5% of the due payments, the cost of the audit will then be borne by the Licensee.

4. Use of Licensed Properties

4.1 Compliance and Authorization

The Licensee agrees to use the Licensed Properties, which include but are not limited to trademarks, service marks, and trade names, strictly in accordance with the standards and guidelines set forth by the Licensor. The use of these properties is restricted solely to the manner explicitly authorized under this Agreement.

4.2 Modification Restrictions

Licensee shall not alter, modify, or change the Licensed Properties in any way without the prior written consent of the Licensor. Any desired modifications must be formally requested, and written approval must be obtained before any such changes are implemented.

5. Quality Control

5.1 Inspection Rights

The Licensor retains the right to conduct periodic inspections of the Premises to ensure that the use of the Licensed Properties adheres to the established brand standards and quality controls. These inspections aim to maintain the integrity and reputation of the brand associated with the Licensed Properties.

5.2 Compliance Adjustments

Licensee agrees to fully cooperate with the Licensor during these inspections and to make any adjustments or corrections suggested by the Licensor. This cooperation includes providing access to relevant areas and adhering to any recommendations made to align with the required standards.

6. Intellectual Property Rights

6.1 Ownership and Acknowledgment

The Licensee acknowledges that all intellectual property rights in the Licensed Properties are and shall remain the property of the Licensor. This Agreement does not transfer any ownership rights to the Licensee.

6.2 Protection of Rights

Licensee agrees to refrain from any actions that could jeopardize, limit, or interfere with the Licensor's ownership or rights in the Licensed Properties. This includes avoiding any activities that would infringe on the intellectual property or diminish its value.

7. Termination

7.1 Conditions for Termination

This Agreement may be terminated by either party under the following conditions:

7.1.1 Notice of Breach: A party may terminate this Agreement if the other party breaches any of its terms and fails to cure such breach within [Specify Number] days following receipt of written notice of the breach.

7.1.2 Written Notice Requirement: Termination requires [Specify Number] days' written notice to the other party, providing time for any potential resolution or cure of the breach.

7.2 Post-Termination Obligations

Upon termination, the Licensee must cease all use of the Licensed Properties and ensure that no materials bearing any of the Licensed Properties are further utilized or distributed. The Licensee must also settle any outstanding payments or royalties due under the terms of this Agreement.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State].

9. Entire Agreement

This Agreement contains the entire understanding and agreement between the parties hereto and supersedes any and all prior or contemporaneous negotiations, discussions, agreements, and understandings, whether written or oral, relating to its subject matter.

IN WITNESS WHEREOF, the parties hereto have executed this Salon Licensing Agreement as of the date first above written.

Name: [Your Name]
Company Name: [Your Company Name]

Name: [Licensee Representative Name]
Company Name: [Business Name]