Booth rent agreements are commonplace in hair salons. Thinkstock/Comstock/Getty Images A booth rent agreement is a legal contract between an owner and a leasing party. It grants permission to the leasing party to use a designated area inside the said business in exchange for a fee. Booth rent contracts are most common in hair salons, tattoo parlors and other businesses of that nature. The agreements themselves are very flexible and can be made to cater to the needs of your specific business. For example, some salon owners prefer weekly booth rentals, while others prefer monthly. 1. Download a basic booth rent agreement to use as a template. If you don't know where to look, you can try the websites Printable Contracts and Docstoc. Both these sites offer free ones. and Agreements Etc. both offer paid versions (see Resources). 2. Fill out the first part of the agreement. At a minimum, the first part always addresses the names of the lessor and the lessee, along with the property address where the booth is to be rented.
Some agreements will also go on to include all of the contact information of each party. 3. Describe the rental booth. Try to include the square footage of the booth along with what access the lessee has to the rest of the building and its equipment. For example, with a booth rental in a salon, the lessee will lease the hair station area, but will also have access to such things as shampooing stations, break rooms, drying stations and reception areas, 4. Write the terms of the agreement. In this section describe whether its a weekly, monthly, or yearly contract; the terms of deposit and payments; the start date of the agreement; any grace periods that are offered; and the ramifications of breaking the contract. 5. State your responsibilities as a lessor. Items such as maintaining the building, keeping the equipment in working order, providing reception services and including utilities should all be addressed. Basically, anything that you're providing in addition to the space should be included here.
6. State that the lessee is considered an independent contractor. This is important because without this clause, the lessee could be considered an employee and leaves you with more legal responsibilities. Also, include that as an independent contractor, the lessee is responsible for such things as their own insurance and taxes. 7. Write a clause that states whether the lessee is allowed to sub-lease the space to another party or not. If they are allowed to sub-lease, detail the conditions under which they are allowed to do so. 8. Write a clause stating that the lessee is obligated to upkeep the premises and keep the areas they use neat and clean. Also, state that the lessee is responsible for any damages caused by themselves, their clients, or their guests that's caused by negligence or malicious acts. 9. Include any additional sections you want to highlight. You've already covered the basics of the contract, but there are addition options you can add if you choose to do so. Common examples include offering janitorial services, a separate section detailing utilities, an indemnity clause releasing the owner from liability, and an exclusivity agreement.
10. Provide spaces for both the lessor and the lessee to sign and date the contract at the bottom. Tip References Idea Marketers; What You Need to Know Before You Sign a Salon Booth Rental Agreement or Rent a Chair Contract; Francis FeatherbyBeauty Salon Secrets: Booth RentalBharat Bhasha; Salon Booth Rental Make Easy; Francis Featherby Photo Credits Thinkstock/Comstock/Getty Images Suggest an Article Correction PHENIX SALON SUITES IS NOW PRE-LEASING FOR OUR NEW LOCATION THAT WILL BE LOCATED IN THE BRAND NEW PUBLIX SHOPPING CENTER ACROSS FROM THE LIFETIME FITNESS CENTER IN CAHABA HEIGHTS/VESTAVIA. CALL DENNIS DAUGHETY AT 205-422-5661 TO SCHEDULE A TOUR AND SEE WHY PHENIX SALON SUITES IS THE NUMBER ONE SALON SUITES CONCEPT IN THE US!!! Come see why our salon professionals are so happy they made the move into salon ownership! Cosmetologist, Hair Stylist, Nail Technicians, Manicurist, Massage Therapist, Estheticians, Aesthetic Medicine, Spray Tanning, Small Retail Business and Any Other Specialty Service Providers......
OWN YOUR OWN SALON OR SMALL BUSINESS, CREATE THE SPACE YOU HAVE BEEN DREAMING OF, RUN YOUR OWN BUSINESS, REAP THE REWARDS! Cut and paste the link below to see our latest Video!- Founded by a Salon Family with over 24 Salon Professionals in the family and more than 85 Years of Salon Experience. - Professional Liability Insurance Included - All equipment provided (styling chair, shampoo station, cabinets, dryer w/wheels) - National Advertising campaign to strengthen the Phenix Salon Suites brand and encourage walk insOver 180 Locations are Now Open in the U.S and over 65 more new locations will open in 2017 with another 300 in the next couple of years! Keywords: Salon Suites, booth rental, nails, hair, massage, spa, private. FOR MORE INFORMATION CALL 205-422-5661Recruiters, please don't contact this job poster. do NOT contact us with unsolicited services or offersCosmetologists who work as employees on a commission basis keep a percentage of the income they bring into the salon through the services they perform, typically 50% of the total amount.
Although as an incentive, some salons will pay their stylists on a sliding scale, with the greater the amount of money brought into the salon by the cosmetologist, the higher the percentage she will be allowed to keep, sometimes 55% or even 60%. Cosmetologists who are paid on a commission basis are also paid a percentage of the total amount of retail products they sell, usually 10% to 15%. The salon owner provides all the products and supplies used by commissioned employees, including shampoo, conditioner, permanent wave rods, hair color, and towels, and also pays the business expenses. The employee usually supplies her own combs, brushes, shears, blow dryer, curling irons, clippers, and other specialty items. Commissioned salon employees normally work a schedule set by the salon owner or manager, use the supplies (such as shampoo and permanent waves) that the salon owner purchases, and sell the retail product lines that the salon owner chooses to offer for sale. Many salon owners will pay all or part of the fees for continuing education for their employees, and some offer fringe benefits such as vacation and sick pay.
Other than keeping an appointment book for their clients, the bookwork necessary for a commissioned stylist is usually not extensive or complicated. Advertising is also the responsibility of the salon owner, although word of mouth is undeniably the best advertisement of all. Individual hairstylists usually have their own business cards and the responsibility of building their own clientele belongs to them. Many cosmetologists who are self-employed own their own salons, but a growing number of the self-employed lease booth space or a chair from the salon’s owner. In this case, workers provide their own supplies, and are responsible for paying their own taxes and benefits. They usually pay a monthly or weekly fee to the salon owner, who is responsible for utilities and maintenance of the building. Booth rental cosmetologists enjoy greater freedom but also have greater responsibilities than commissioned salon employees. In exchange for their rental payment, they usually receive a vanity, mirror, hydraulic salon chair, and access to shampoo bowls, towels, and chair or “hood” dryers, all provided by the salon owner.
The independent contractor must purchase all the products she uses on her clients as well as the retail products she chooses to sell, and like the commissioned employee, she furnishes her own shears, combs, brushes, styling tools and numerous other specialty items as well. Independent contractors pay their own registration fees for continuing education, and do not receive fringe benefits through the salon. Owners of booth rental salons may or may not advertise their business; independent contractors are often responsible for their own marketing. When it comes to taxes, there is a great deal of difference between an employee and an independent contractor. Independent contractors must also hold a state sales tax license, collect sales tax on their services and retail sales, and periodically send the sales tax collected to the state in which they practice, while commissioned employees don’t have to worry about any of that, as it is all the responsibility of the salon owner. Because they are not employees and federal income tax is not withheld from their pay, independent contractors are required to pay self-employment tax and usually file quarterly estimated income tax payments to the Internal Revenue Service to avoid having to pay their total tax bill at one time.
Because their tax returns are more complicated to file than those of a regular salon employee, independent contractors often enlist the help of a bookkeeper or accountant when tax time arrives. It is important that independent contractors keep accurate business records and receipts of all income and expenses, while salon employees have no need for keeping most of these records, although business expenses such as license fees and equipment may be claimed as a deduction by both employees and independent contractors. Independent contractors are free to set their own schedules, can come and go as they please between clients, and maybe even take a second job or a class. They are able to choose the product lines they want to use and to sell. While all this freedom is very appealing to many cosmetologists, most wait to become independent contractors until after they have a steady clientele built up, because whether or not they have any appointments on their books, they must pay their rent and purchase supplies to stay in business.