When it comes to your commercial lease, asking for provisions that a landlord wouldn’t normally include can save, or even make you money. One of the smartest moves you can make is to understand and negotiate an Exclusive Clause or Restrictive Covenant in your lease or renewal agreement. These terms can provide a significant advantage if you know how to leverage them.

What Is an Exclusive Clause?

An Exclusive Clause in your lease gives you, the tenant, the right to offer specific services or sell certain products that no other tenant in the shopping center can provide or sell. Don’t let the word “exclusive” mislead you, it’s not automatic or guaranteed.

This differs from a Restrictive Covenant, which is language in the lease that restricts other tenants from offering certain products or services, putting everyone on notice of those limitations.

Why It Matters

Securing an Exclusive Clause helps protect your salon’s revenue and market position. Always request exclusivities for all the services you provide and the products you sell in the center. This puts the responsibility on the landlord to prevent competing businesses from opening within the same property.

However, there are some exceptions:

• Large retailers often have the right to provide a variety of services or carry certain products, such as having a salon inside their store or offering specialty haircare lines.
• Mixed-service businesses, like spas, may be allowed to offer limited overlapping services. For example, one styling chair in their space often capped at around 10% of their total sales.

Negotiation Tips

If you can’t secure a full exclusive, here are strategies to protect your business:

• Request limits on the landlord leasing to other upscale salons.
• Ensure no other tenant is permitted to sell the same product lines (this can also be reinforced through exclusivity agreements with your product providers).
• If the landlord won’t agree during the initial term, try again at renewal or request exclusivity for at least the first three years.

These steps help safeguard your salon against competition that could reduce your sales and profit margins.

Why You Should Act Early

This issue often goes unnoticed until it’s too late. By negotiating the right terms up front, you protect your investment and long-term success. You may never know exactly how much revenue you saved by including this clause, but you’ll be grateful for the protection if a competing salon tries to move in.

Need Help?

I offer free lease consultation calls to help you understand your options and negotiate the best terms possible.

📩 Contact me at leasing@summitsalon.com