Rent Abatement Applies When the Building is Inaccessible and Suite Renter Cannot Reasonably Operate

Rent shall abate on a proportionate, daily basis (up to the maximum # of days per calendar year as specified herein) only when the Suite is rendered materially inaccessible or unusable for the lawful operation of Licensee’s salon business due to conditions not caused by Licensee and Licensor has declared an event of abatement. The following categories represent qualifying events. Upon the occurrence of a qualifying event Licensor shall declare an event of abatement and immediately contact Licensee to opt-in or opt-out of utilizing their abatement credit.

The following represent events that typically qualify for exercising the Rent Abatement.

Loss of Access to the Suite

Applies when the renter cannot physically access the suite due to issues caused by the operator, landlord, or building systems.

Examples

• Building closure
• Electronic lock/access system failure preventing access
• Fire marshal mandated shutdown
• Flooding blocking any entry
• Police/security lockout
• Mandatory evacuation
• Hallway/common area construction blocking any and all access

Utility Failures That Prevent Services

Applies when utilities necessary for licensed salon operations are unavailable.

Examples

• No electricity
• No running water
• HVAC failure creating temperatures below 60 and above 80 degrees Fahrenheit that prohibits safe service delivery

Force Majeure Events

Applies when the building itself becomes inaccessible due to a catastrophic event or government decree.

Examples

• Regional utility outages
• Acts of terrorism
• Government emergency orders
• Civil unrest
• Extreme weather such as hurricane and tornado

Operator-Caused Construction or Maintenance Disruption

Applies when management’s work substantially interferes with the suite’s use.

Examples

• Planned renovations shutting down water/power
• Excessive noise/vibration preventing services
• Repeated maintenance closures
• Utility shutdowns during remodels

Casualty Events

Applies after fire or casualty damage that renders the building inaccessible.

Examples

• Fire
• Severe storm damage
• Burst pipes and flooding
• Major roof leak with flooding
• Natural disaster damage

Typical Exclusions (When Abatement Would NOT Apply)

The following details the events that DO NOT qualify for exercising the Rent Abatement.

Issues Caused by the Suite Renter

No abatement if the renter caused or contributed to the issue.

Examples

• Negligence
• Damage to plumbing/electrical
• Improper chemical use
• Unauthorized alterations
• Failure to follow operating rules
• Overloaded electrical equipment

Temporary or Minor Interruptions

Short interruptions excluded.

Examples

• Brief power flickers
• Short HVAC interruptions
• Temporary internet issues
• Routine maintenance interuptions
• Minor repairs
• Interruptions under 3 consecutive hours

Reduced Client Business or Economic Hardship

Abatement applies to inability to operate — not reduced profitability.

Examples NOT qualifying

• Slow customer traffic
• Poor sales
• Competition
• Staffing shortages
• Inflation
• Online reviews
• Parking inconvenience
• Neighborhood construction not blocking access

Personal Circumstances of the Renter

No abatement for issues unrelated to the premises.

Examples

• Illness
• Vacation
• Family emergency
• License suspension
• Loss of clientele
• Employee disputes

Shared/Common Area Inconveniences That Do Not Prevent Operations

Minor inconvenience do not trigger abatement.

Examples

• Crowded parking
• Temporary lobby work
• Cosmetic renovations
• Elevator delays where alternate access exists

The following terms are required to exercise the rent abatement:

Notice Requirement

Renter must notify management promptly.

Mitigation Requirement

Renter must reasonably attempt to continue operations where possible.

Cap on Liability

Abatement applies to rent only. Lost profits/business damages are excluded.