Every salon owner is used to wearing many hats, fulfilling a number of diverse roles. They learn most of these skills through trial and error and through repetition.
Perhaps one of the skills that owners struggle with most is salon lease negotiation, simply due to a lack of knowledge or experience in this area. Although salon rent payments need to be less than 7 percent of gross sales in order for a salon to be profitable, owners often pay exorbitant amounts and feel powerless to negotiate with landlords. This single budget line item can often make or break the financial success of the salon.
Many salon owners are at a disadvantage during a lease transaction simply because they have never had the opportunity to learn this particular skill.
Do not miss Summit Salon Business Center’s top ten points of negotiation for a salon lease transaction:
- 1. Net Rent
2. Personal Guarantees
3. Relocation Clauses
4. Extensions and Renewals
5. Assignment and Sublet
6. Exclusive or Restrictive Covenants
8. Landlord and Tenants Work
9. Radius Restrictions
10. Termination and Continuous Operating
For more useful information on Lease Negotiation, click here!
- By Summit Salon Business Center – www.SummitSalon.com