Booth Rental Agreement 1 Booth Rental Agreement 2 32 KB View Details Salon Booth Station Rental Lease Agreement TemplateGoogle Sheet / DocWhat’s more fabulous than being a master hair stylist? Owning your own salon! Not only will you always look good and feel beautiful, but you are the one in charge of naming your hair salon, marketing your salon, and making sure you have the best talent working inside your salon! As the owner, it's up to you to determine how to manage your stylists. Some owners will simply pay a percentage of the monies earned, or commission, from each service performed while others will charge a flat monthly rate to be operating there. If you choose the latter, which is a very common scenario, then you will want to think about having a good, solid salon booth rental agreement in place! Booth Rental AgreementsBefore I delve into what should be included in a salon booth rental agreement, I will first go over a few basics about them. What are salon booth rental agreements?
A salon booth rental agreement is basically a lease like you would have for an apartment, but on a smaller scale for a workspace. It enables salon owners to rent out spaces, “cubicles,” or booths to operate independently under their roof and only have to pay whatever is specified in the agreement, rather than a percentage of sales. How is it different for the owner? The owner of the salon is not responsible for payroll, rather ensuring that each stylist knows they are operating as a 1099 worker, or an independent contractor. The owner also has the responsibility of collecting rent from the booth renters, and dealing with any potential problems as they may arise. The salon owner is under absolutely no obligation to offer any kind of health insurance or benefits, and is not responsible for any operations or actions of the stylists. How is it different for the stylists? As stated earlier, stylists must pay out a monthly/weekly/bi-weekly booth rental fee, rather than be paid an hourly rate and/or commission on services performed.
They have the freedom to make as much or as little as they see fit, but in order to be a successful booth renter, it is best that they focus on marketing and making the most they can. Not only are stylists responsible for paying a booth rental fee, they are ultimately responsible for purchasing their own supplies, keeping track of all of their finances, maintaining a database of clients and appointments, paying taxes and insurance, and securing appropriate business licensing where required by local government. Basically, they are their own business and are in charge of everything within their own operation! If you are adamant on drafting your own, it can be helpful to use someone else’s agreement as a guide or perhaps one that you may have saved from renting your own booth in the past. Regardless of who writes it, it is still good to have a legal entity look it over to ensure it’s an enforceable agreement.What to IncludeRental basics. Rental start/end date, rental amount, due date (weekly, bi-weekly, monthly), late fees and when/how they are charged, and any other fees that may be the responsibility of the renter such as security deposits.
What’s included in rent. It should be clearly stated in the contract what is included in the rental fee. Things that are often included are: Booth rental, use of electricity, trash removal, merchant service, landline access, wifi, cable, shampoo station, designated storage area, and so on.Often times, when you start as an employee at a new place, you are given what is called a “probation period” which means you can quit or be let go for whatever reason within the specified timeframe, often 15 or 30 days. Similarly, since your renters are not your employees, you still need this provision in the contract and include that a written notice must be given. Let’s face it, personalities can clash hard. Just don’t leave this out; it protects both of you.If there are other services you can offer your renters, such as the services of a receptionist at an additional charge, offer this in the contract and have the renter initial next to each additional service agreeing to the fee on top of the rent.
Some salon owners are against a whole lot of decorations while others don’t care how it’s decorated, so as long it’s returned to the original state upon vacating. If you have any personal preferences, this is the place to include it. Before even thinking about typing up your rental agreement, you need to make sure renting booths out is legal in your state! As far as I know, it is illegal in a few states, and you don’t want to be operating outside of the law by accident! If you have the legal green light, go for it and see how well it can work out for you!Booth Rent vs. Commission vs. HourlyWhat would you have liked to read more information about? What are salon booth rental agreements? Do you have to have one? What else should you include in one? How much does it cost to have one written for you? Booth rental, commission, or hourly? A sample rental booth agreementSee results without voting 75 Cute and Creative Bakery NamesChoosing a name for your bakery is a piece of cake with this list of 75 cute and creative bakery names.
90+ Trendy and Charming Boutique NamesDo you have business savvy and a passion for fashion? Opening a clothing boutique is the perfect way to embrace both! Check out our cute, unique, and classy boutique names. 150+ Cute Questions to Ask Your BoyfriendWhether you’re trying to get to know each other better or just bored, here is a list of over 100 cute questions to ask your boyfriend!A hair salon can be a profitable business. Little blond long hair girl has haircare by stylist. The cost to start up a hair salon business varies depending on the type of business. A small booth salon, where you rent a section of an existing salon as your own business, costs infinitely less than purchasing a large well-known franchise. Both may share similar start-up costs, but the amounts will be different. Equipment In a booth rental situation, the salon supplies the chair, sink and hair dryers as part of the monthly rent. If you are purchasing an existing salon, you can negotiate the price of the equipment as part of the sale and some equipment will be part of the price as a fixture, such as the sinks, receptionist desks, booths and supply area.
An existing franchise comes with the necessary equipment while a new franchise will involve an outlay of funds to purchase the equipment. Costs for equipment range from zero dollars for booth rental up to $32,000 at a franchise. The cost depends on the type of salon, amount of chairs and services offered. Supplies Supplies for a salon can become costly. Not only are there the products for use on the client for services, but there is also the cost of the products you sell. These prices depend on the brands, such as Matrix, Abba, Nexus or OPI, and can go up to $23,000 as an initial cost. Other supplies include sanitizers, perm rods, hair capes, towels, cleaning supplies and a washer and dryer. Most salons require the hair stylist to provide their own scissors, blow dryers, brushes, razors and combs. Some salons provide clippers although many stylists have their own. Business Start-Up Costs A booth rental can require a monthly rent up to $1,000, but it includes insurance, utilities and the business license for the establishment.
As a sole business or a franchise, you are required to pay rent, insurance, deposits and utilities. These fees can range up to $10,000. An attorney can be required to negotiate or review the contract for the rent or franchise agreement at an additional hourly cost from $250 an hour or more, Promotion One area you do not want to neglect is the promotion of your new business. The expenditure of this money can lead to the infusion of cash you will require over the next several months as you build up the business. Promotions can include radio advertising, television advertising, flyers in the mail or left on cars. Promotions prices can vary and range from a couple of dollars for the flyers to hand out up to $15,000 for the television spots. References Entrepreneur: How to Open a Salon or Day Spa; August 2005Fantastic Sam's: Investing In A Hair Salon FranchiseSport Clips: Franchise Opportunities Photo Credits Little blond long hair girl has haircare by stylist. Suggest an Article Correction