What Is a Salon Booth Rental Agreement?
A salon booth rental agreement is a legally binding contract between a salon owner and a stylist who rents a workstation inside the salon. It clearly explains the terms for renting the space to both parties, ensuring there is no confusion, and includes things like:
- The rent amount
- When rent is due
- What items the stylist can use from the salon
- How disputes will be handled
- General rules and responsibilities for both parties
Clearly outlining these rules within the agreement helps both parties maintain a long-term professional working relationship. It also helps avoid misunderstandings. Salon booth renters are typically independent contractors and do not work as regular employees of the salon. This essentially means that they set their own work hours, manage independent clients, and run their own business using the booth they rent. A salon booth rental agreement should clearly state this within the document. It must also follow the IRS guidelines for independent contractors, which specify how much control the salon has over the stylist’s work.
You can use a Legal Templates free salon booth rental agreement template to draft your own. Our guided questionnaire makes it easy to fill in your details quickly and download the completed agreement in PDF or Word format.
What to Include in a Salon Booth Rental Agreement?
While the salon booth agreement can vary depending on the type of business and the state it’s operating in, here are some general key sections a well-written agreement should include:
1. Booth Details
Begin by describing the booth that you’re renting within the salon. Explain where, within the salon, the booth is located. Include the business name and address of the salon. Mention any key details of the booth that would tell the stylist exactly what they’re renting. You can also include the booth size and layout to avoid any confusion later on.
Since stylists will be sharing the space, it can be helpful to list any equipment that they will be sharing. For example, a styling chair, a mirror, storage cabinets, a dryer, etc. It is helpful to be as descriptive as possible so everyone knows what items are shared and which aren’t.
2. Payment Terms
Like any other rental agreement, you’d want to specify the rent amount and when it’s due within your salon booth rental agreement. Some salons may collect rent every week, while others prefer a monthly due date. Include other details such as security deposits, late fees, and preferred payment methods within your agreement. State whether rent will be a fixed amount or calculated in some other way, such as a percentage of gross or net sales.
3. Lease Term
Specify the start date and the duration of the agreement. For example, will the lease be week-to-week, month-to-month, or for a set term? Include details about how either party can end the lease agreement early and under what circumstances.
4. Shared Utilities
The owner may either include utilities within the rent or agree to split certain costs. The salon booth rental lease agreement should clearly specify which utilities the stylist is responsible for (e.g., electricity, water, or other fees) or whether they will only pay a share of the costs. Any common areas that both the landlord and tenant will be using should be listed clearly. This can include spaces such as storage rooms, break rooms, laundry rooms, or parking areas.
For example, in a hair salon booth rental agreement, you may want to list areas such as shampoo bowls, color mixing areas, and towel storage. In a beauty salon booth rental agreement, shared areas may include treatment rooms, sanitizing stations, and makeup counters.
5. Salon Rules
The salon rules and standards may vary from one salon to another. But here are some important aspects you can include within your rental agreement:
- Hours of operation
- Cleanliness expectations
- What services are allowed
- Dress codes (if the salon has one)
- Any safety information, such as chemical use
Many states also have their own sanitation standards for salons. Also, check with your local state board’s standards.
6. Client Ownership
Since stylists work as independent contractors and have their own client base, it can be helpful to specify who owns the client list and how that would be handled should the working relationship change at any stage.
7. Insurance and Liability
Some salon owners may require the stylist to carry their own liability insurance. Typically, stylists already have:
- General Liability Insurance, which covers injuries or property damage.
- Professional Liability Insurance, which covers claims related to the services they provide.
In your agreement, you can also specify who will be responsible if any items in the booth are damaged.
8. Retail Product Sales
If the salon sells products, explain how those sales will work. Whether there is a commission or if the stylist will keep everything they sell. If the salon has rules about which services can or cannot be offered, they should be included in the agreement.
9. Dispute Resolution
Explain how disputes will be handled. Some salon booth lease agreements may require mediation or written notice before any bigger steps are taken. Clarity on how disputes will be handled can provide both sides with a clear and calm way to resolve issues if they arise.
Responsibilities of Salon Owners and Booth Renters
A salon booth lease agreement helps split duties between both parties. It can help both parties understand what they’re responsible for and what tasks they’re supposed to handle.
Salon Owner Responsibilities
Salon owners are responsible for the general upkeep of the salon. This often includes:
- Making sure the salon is clean and safe for clients
- Ensuring proper licensing
- Providing working equipment
- Maintaining sanitation standards
- Keeping shared property, tools, and common areas in good condition
Stylist Responsibilities
Stylists may work independently, but they still share a space with the rest of the salon workers and therefore, have some important responsibilities, such as:
- Keeping their workstations clean
- Following the rules and regulations of the salon
- Paying rent on time
- Carrying required insurance
- Bringing their own tools, products, and supplies (if required)
Sample Salon Booth Rental Agreement
Refer to the sample salon booth rental agreement template below to understand how to complete each section correctly. Then, use our guided form to customize your own agreement and download it as a PDF or Word document.
When Can a Salon Owner End the Salon Booth Rental Lease Agreement?
Your lease agreement should outline the situations in which a salon owner may terminate your contract. While most booth rentals borrow ideas from general contract law and traditional lease arrangements, the specific terms depend on what’s written in the agreement.
Here are some common reasons why a salon owner may end your booth rental agreement:
- Non-payment of rent: If rent is not being paid, a salon owner may end the rental agreement after following the steps listed in the contract.
- Rule violations: If the stylist continues to break rules after being notified, the owner may choose to end the agreement.
- Unsafe behavior: If the stylist’s behavior or actions pose a threat to the safety of clients and other workers within the salon, the salon owner may terminate the contract.
- Loss of required licensing: State cosmetology boards require stylists to maintain an active license to provide services. If the stylist loses their license, for whatever reason, they owner may have to end the agreement.
State Requirements for Salon Booth Rentals
Each state has its own rules for licensing, sanitation, and the operation of salons. These requirements are separate from the rental agreement itself, but it’s helpful for salon owners and stylists to check their state board for the most current guidelines.
For example:
- The California Board of Barbering and Cosmetology provides rules for workstation setup, cleaning practices, and overall salon safety.
- The Texas Department of Licensing & Regulation (TDLR)regulates salon facilities and booth rentals, as well as the health and safety standards that salons must meet.