DFW, TX—The Dallas Beauty Salon opened its doors to a few thousand people, and its mission was to transform the city’s beauty community and attract a new generation of young, talented people.
Now, the salon is in danger of losing its doors as its landlord has sued the company, accusing it of running a business that is not “fairly” valued.
The lawsuit filed Thursday in the Travis County district court alleges that the DFW Beauty Salon violated the Texas Business and Professions Code by charging fees above the value of the property.
In the lawsuit, the attorney general’s office argues that the rent-controlled structure of the salon does not allow for fair market value of its property.
The case is being investigated by the state’s attorney general and the Texas Rangers, and DFW attorney Scott C. Johnson is not involved.
“The lease does not permit fair market rent,” said DFW beauty salon owner and board member Laura Epps in a statement.
“We have been unable to negotiate fair rent since the lease was created, which has left us without a place to rent.”
The lawsuit accuses DFW of illegally charging salon owners for their services and that the salon failed to comply with zoning regulations.
The lawsuit does not allege that the landlord is discriminating against the salon owners or the salon staff.
The Dallas-Fort Worth area has seen an explosion in beauty salons, with about 10,000 beauty salon openings in the last year.
But in Denton County, which includes Dallas, about 1,400 beauty saloons have opened.
The DFW Salon’s lawsuit claims that the lease is unfair because the property is not leased for a long term, as is required under Texas law.
The lease requires the owner to give up all of the beauty salon’s properties to a new owner, but the lease does provide for a one-year grace period, and the owner has failed to do so, the lawsuit alleges.
The attorney general is seeking damages and an injunction preventing the Denton salon from shutting down.
The Dallas beauty salon opened in 2017, and it is operated by the Daughters of Charity.
Denton attorney Daniel Buehler said he was “surprised” by the lawsuit.
“It’s a fair use of the law to have a lease,” he said.
“The lease is an agreement.
It’s a contract.
The Daughters have signed the lease.”
Denton has seen a boom in beauty salon openings in recent years, but its numbers are shrinking.
There were 8,935 beauty salontwocs in 2016, according to the city of Dallas.
In addition to Denton, Texas has also filed similar lawsuits against the Dallas Beauty Salons and the Dallas-area beauty salon operators, including two in San Antonio.
A spokesperson for DFW said that they are “actively looking for more ways to improve our lease.”
In a statement to Business Insider, the Dallas Salon said it will appeal the suit.