When hiring a location for nails business, tenants usually have to sign an agreement form as a contract (lease). Land owner (landlord) often prepare the draft contract – compiled by their lawyers or legal counsel – which has semantically complicated contents and legal terms. Here are 7 things you should know when prepare hiring contract for salon business in general and in particular, a nail salon:
1. You should have a clear understanding of business conditions advantages and difficulties as well as the ability to expand later. Pay attention to the terms related to the Purpose of premise section, as proficiency in law called the terms of “use purpose" of the business location, carefully consider the terms of Percentage rent increase (i.e. the rent increase percentage ratio of each period), is that too high, too disadvantages or not; terms related to the ability to lease (sublet); terms of expansion.
2. Considering the competition level of hiring place. Carefully consider through the terms of the Percentage income in the draft contract (understood as the income percentage which have to pay extra to the landlord), the adjusted Common Area Maintenance cost if specified by the landlord, etc.
Though the area has less competition (there are a few salons), it is not good if amendment costs are too high, it need to be reviewed. Or pay more attention on the terms of Exclusive rights when hiring salon in mall.
3. Are there any limited on the right of salon adjustment? There are places where landlord does not allow you to adjustable lighting system, air conditioning system ... You need to know this to evaluate the effects or impacts to your business.
4. Rights and limited range of refurbished salon or salon purchases later. Nail salons are usually needs annual refurbished for the sake of business expansion or extension. You need to find out the landlord's rules for exact rights and limits of your salon when renting land - location, learn the rules relating to the resale salon later as needed, including terms related to have or not the former owner paper of Power of Attorney.
5. Right to place Ads board at the business location and the surrounding area. Do not disregard this provision before signing the contract to avoid damage and underprivileged later.
6. Effective duration and termination of the hiring contract. By understood it you can prepare well for your business plan. Consider all the following terms:
• The Penalty: percentage and fixed terms of penalties.
• Penalty paid after the specified period (Late Payment Penalty).
• Terms of re-signing (Renewal option): Look carefully that it have or have not. If it have, is it convenient or it bound too heavy, disadvantage for you later? Knowing your rights in this can help avoids later controversy.
7. The terms relating to maintenance salons, safety business and salon insurance (insurance required of tenant). Knowing it to avoid penalties for breach of contract terms, as well as help you anticipate the cost impact to the business expenses later, to help prepare the store preservation planning. View the store safety conditions composed by landlord for difficulty terms. Ability to meet the demand on this issue or require a expensive re-equip (because it will increase the cost of doing business in an unexpected way).