Salon Booth Lease Agreement: Template for Owners

Need a way to boost your profits? Consider renting out salon space to independent beauty professionals. A solid salon lease agreement can protect your business and bring exceptional talent into your salon, while also establishing the proper terms to ensure a healthy, cooperative relationship. 

This article will outline what a salon booth rental agreement is and why it’s key for your business. We’ll also cover sections typically included in booth rent contracts, plus common limitations and an example of a booth rental agreement template. 

What Is a Salon Booth Lease Agreement and Why Is It Key?

A salon booth rental agreement is a binding contract that outlines the terms and conditions for independent contractors to run their own business within your salon. Though they work inside your salon, renters are not employees – you simply become their landlord while they perform their own services.

Offering your salon space to renters is a great way to earn some extra cash for your business, though you should always have an airtight set of rules in place.

Here, we list a few reasons why salon lease agreements are necessary: 

They detail responsibilities

A detailed salon lease agreement will outline the responsibilities for you and the renting stylist. For instance, cleaning responsibilities, who pays for which utilities, and which supplies the renter may have access to (or whether they must bring their own). A clear guide on these terms will foster a better relationship between you and the renting stylist, facilitating a more professional environment.

They're a legal safeguard

Your salon rental agreement also acts as a legal safeguard for your business. With clearly defined terms such as rental amounts, start dates, licensing requirements, and non-competes, you can create an indisputable document that protects your salon business and helps you avoid conflicts or lawsuits. 

They define appropriate use

A well-drafted salon lease agreement will flesh out your rules for use of the property, such as hours of operation and acceptable styling products. You can’t exert control over specific services, but (depending on your state laws) you may limit the general types of services renters can offer. For instance, if you run a hair or nail salon, you may restrict accepted services to those only within the hair and nail industry, and prohibit other activities such as tattooing or waxing. 

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9 Sections of Salon Booth Lease Agreements

Each salon booth contract will vary based on the business (and in some cases, state laws). Below are some of the most common sections you’ll find in standard booth lease agreements. 

1. Party introductions

The salon rental agreement should have the names of both parties: you, the business owner (Landlord/Lessor), and the renting stylist (Tenant/Lessee). Include legal names along with any relevant business names. Some independent contractors will work under an LLC or DBA that may not contain their own name. You should also include any necessary contact information such as addresses and phone numbers. 

2. Lease terms and renewals

Indicate the duration of the lease with defined start and end dates, whether that’s six months, one year, or any other quantifiable term. You may also choose to lease on a week-to-week or month-to-month basis, though it’s still a good idea to define the minimum/maximum rental time. 

How long you rent out the space is entirely up to you – just make sure you’ve made this crystal clear in your paperwork. You should also include details about renewals, or next steps if the stylist decides not to continue in your salon (such as how much advance notice is required). 

3. Rent and payment terms

The booth rental cost, due date, and payment frequency are some of the most important terms to define in your salon booth contract. These will detail exactly how much is due and when, eliminating any confusion or ambiguity surrounding payments. You should also indicate which payment methods you accept and any potential processing fees involved.

Conveniently process transactions on the spot with GlossGenius’ Payments features.

4. Security deposit amount and conditions

Accurately detail the current conditions of the property and its expected return condition once the lease ends. Most leases will include clauses regarding acceptable wear and tear, though you should also require booth renters to perform regular maintenance on any borrowed equipment to reduce potential damages. Include the security deposit amount, and which damages you may deduct for.

5. Hours of operation

Provide your business hours of operation. While you can’t dictate your booth renter’s schedule, note your official opening and closing times so they can create their own schedule around your hours. 

6. Utilities 

Make it clear who is responsible for certain utilities: Are water and electricity included in the rent? Or do renters pay a percentage of the monthly expenses? Be careful not to overlook details like these, as they can become an awkward headache (or even a legal issue) once the bills start coming around. 

7. Use of space

Defining the use of space at your salon can create a more comfortable environment for both clients and staff. This section outlines what the stylist can and cannot do in their rented space (such as providing illicit services or those outside their certifications), how much equipment they’re allowed to bring, specific decor, or even permitted chemicals and products (per OSHA regulations). 

8. Salon policies

Do freelance stylists need to have their cosmetologist license? Are they required to have insurance? Make sure you write out any salon-wide policies the renter should know before signing their agreement. This can also include policies on hygiene, sanitization, proper waste disposal, professional conduct, social media, and pets. Despite being independent contractors, renters are still a representative of your business while they work on your property, and are obligated to follow stated rules for the premises – as long as they are in compliance with state and federal laws. 

9. Miscellaneous

Are booth lessees allowed to work at competing salons while renting from you? What constitutes a breach of contract? Can any section of the contract be amended? You may want to clarify these terms as well to ensure all renters fully understand the parameters and limitations of their agreement. 

Salon Booth Lease Agreement Template

Drafting the right contract is essential for smooth business operations. Here, we’ve provided a salon booth rental agreement template to help you get started.

*Please note that any [specified terms] are for example only. Feel free to adjust them to match your business needs.

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Agreement date: _________________

PARTIES: 

[Salon Owner Name/Business], known as the “Lessor/Owner/Landlord” 

[Salon Renter Name/Business], known as the “Lessee/Renter/Tenant”

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Owner contact information: 

Address: 

Phone number: 

Email:

Renter contact information:

Address: 

Phone number: 

Email: 

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LEASE TERMS AND RENEWALS

Lease start date: 

Lease end date: 

*Renewals or non-renewals must be indicated via 60-day advance written notice. 

RENT AND PAYMENT

Tenant agrees to pay [monthly/weekly] amount of $______________ in full by the [1st] of every month (if monthly), or by [Friday] end of day (if weekly). Owner will accept rental payments via check or money order. Visa or Mastercard payments are also accepted with a [1.5%] processing charge per transaction.

SECURITY DEPOSIT

Tenant agrees to provide a security deposit in the amount of $____________, which will be returned in full within [21] days of lease termination (pending any damages or necessary repairs caused directly or through negligence by the Lessee). In the event of deposit loss, Owner agrees to provide Lessee with a written list of itemized deductions. 

HOURS OF OPERATION

Renter acknowledges that salon business hours are between _____________ and __________ [Monday through Saturday], and no access to the premises will be granted outside of these stated hours. Owner understands that the Renter may establish their own hours as long as they fall within this timeframe. 

UTILITIES

Owner is responsible for covering all costs related to the [business phone and internet], as well as _______% of all [electricity and water] costs. Tenant agrees to provide the remaining ______%. These costs are not included in the base rent price listed above. 

USE OF SPACE

Owner will provide Renter with [one (1) salon chair, hygienic gear, cleaning supplies, and a workstation], which they may customize for their own accessibility. Renter is responsible for supplying their own [hairdryers, brushes, and styling products]. However, they must adhere to the salon’s “low tox” environment policy and avoid the use of products containing [formaldehyde, PFAs, and methylene glycol]. Renter also agrees that their rented space shall be used for the occupation listed in this agreement only, and any services provided outside of the accepted terms may result in immediate termination of the salon lease agreement. 

SALON POLICIES

Before signing, Tenant must acknowledge and agree to the salon’s existing policies: 

• Toxic chemicals (such as dyes or relaxers) require a special refuse for disposal. 
• Renter agrees to conduct themselves professionally both at their station and in any common areas so as not to affect the business or reputation of either party. 
  • Drinking, drug use, or physical violence is not permitted on the premises at any time, and engaging in any of the above activities will result in immediate termination of lease agreement. 
• Renter is free to take photos and videos of their work for social media as long as their clients provide consent. 
• Renter understands that due to limited space and client sensitivities, pets are not allowed inside the salon (with the exception of service animals). 
• Renter agrees to clean and maintain borrowed equipment, and that any damage incurred through the Renter’s actions or negligence may result in loss of security deposit. 
• Only Tenants with active insurance and a valid cosmetologist/esthetician license are eligible for space rental. Renter acknowledges that misrepresentations regarding credentials will result in immediate lease termination, and they shall be held responsible for any fines or penalties incurred.

MISCELLANEOUS

While in active contract with [Salon Name], Tenant shall not provide services for or share sensitive information with local competitors. Tenant also understands that nullification of any singular section of this contract does not void any other sections of the agreement. Violations of any lease section will be considered a breach of contract and may result in termination of the entire agreement. 

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What Are the Limitations of Salon Booth Lease Agreements?

Booth rent contracts may offer protection and explicit guidelines for your salon, but they can only go so far when it comes to your control. Some restrictions of salon lease agreements include:

Limited authority 

At the end of the day, booth renters are independent contractors, not your employees, so there’s only so much you can stipulate in your terms. For example, you can set your opening/closing hours, but the renter can set their own hours within that given timeframe. You also cannot control their specific services (like which haircuts or nail styles they’re allowed to do), nor can you influence their pricing or force them to use particular salon software. 

They can be tricky to navigate

Hiring independent contractors requires some knowledge and research regarding tax and labor laws. While renting salon space may seem like a good way to boost your income, agreements are serious business: what you permit through these contracts can affect your brand and reputation, as well as your professional relationships. 

There’s not much you can do if the vibe is off

It can be rough working adjacent to someone you just don’t vibe with personally, but contracts exist to protect both parties. In the event you find your personality clashing with your stylist’s (barring any prohibited behavior laid out in the contract), there’s not really anything you can do about it – except try to work it out, of course.

Expand Your Salon Business with GlossGenius

Renting out salon space to independent workers can not only increase your profit, but help support up and coming stylists while potentially bringing more attention to your own business. (If you run a hair salon, having a freelance nail artist on the premises can help expand your clientele by making it easier to market your services.)

GlossGenius is an all-in-one platform that can handle everything you need to streamline your daily operations. With Finances, you can easily manage your expenses and reporting to get through tax season without a sweat. GlossGenius’ Reports & Analytics make it simple to track your business progress and create actionable insights to reach your milestones. And with Forms & Waivers, you can set up custom docs to cover your liabilities, saving you the time and hassle of having to make them from scratch. 

Try GlossGenius today and get 14 days free!

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