Beauty Salon Purchase Agreement

BEAUTY SALON PURCHASE AGREEMENT

THIS BEAUTY SALON PURCHASE AGREEMENT ("Agreement") is made and entered into as of this [____] day of [__________], 20[____], by and between:

SELLER:
Name: [________________________________]
Salon Name: [________________________________]
Address: [________________________________]
City: [________________] State: [____] ZIP: [________]
Phone: [________________________________]
Email: [________________________________]
Establishment License #: [________________________________]

BUYER:
Name: [________________________________]
Address: [________________________________]
City: [________________] State: [____] ZIP: [________]
Phone: [________________________________]
Email: [________________________________]
Cosmetology License # (if applicable): [________________________________]

ARTICLE 1: SALE OF BUSINESS

1.1 Business Being Sold

Salon Name: [________________________________]
Address: [________________________________]
Type: ☐ Hair Salon ☐ Full-Service Salon ☐ Day Spa ☐ Nail Salon ☐ Other: [________]

1.2 Purchased Assets

☐ Salon Equipment (Exhibit A)

• Styling stations: [____]
• Styling chairs: [____]
• Shampoo stations: [____]
• Dryer chairs: [____]
• Manicure stations: [____]
• Pedicure chairs: [____]
• Facial/treatment beds: [____]
• Reception desk
• Waiting area furniture
• Storage/retail displays
• Computer/POS system
• Other equipment: [________________________________]

☐ Inventory

• Product inventory: $[________] at cost
• Retail inventory: $[________] at cost
• Supplies: ☐ Included ☐ Excluded

☐ Lease

• Assignment of lease at [________________________________]
• Remaining term: [____] years
• Monthly rent: $[________]

☐ Intangible Assets

• Business name and goodwill
• Phone numbers
• Website/domain: [________________________________]
• Social media accounts
• Client lists and records
• Appointment books/scheduling history
• Trademarks/logos

☐ Contracts

• Vendor agreements
• Service contracts
• Equipment leases

1.3 Excluded Assets

☐ Cash
☐ Accounts receivable
☐ Personal items
☐ [________________________________]

ARTICLE 2: PURCHASE PRICE

2.1 Total Price

PURCHASE PRICE: $[________________________________]

2.2 Allocation

2.3 Payment Terms

☐ All Cash: $[________] at Closing

☐ Seller Financing:

• Down payment: $[________]
• Note: $[________] at [____]% over [____] months

2.4 Earnest Money

Deposit: $[________]
Due: Within [____] days
Escrow: [________________________________]

ARTICLE 3: DUE DILIGENCE

3.1 Period

Due Diligence Deadline: [__/__/____]

3.2 Information Provided

Financial:
☐ Tax returns ([____] years)
☐ Profit and loss statements
☐ Sales records by service type
☐ Payroll records

Operations:
☐ Client count (active)
☐ Service mix analysis
☐ Staff list and compensation
☐ Equipment list with condition
☐ Vendor contracts

Compliance:
☐ Establishment license
☐ Health inspection reports
☐ Insurance documentation
☐ Any violations/complaints

Legal:
☐ Lease agreement
☐ Booth rental agreements (if any)
☐ Employee contracts
☐ Pending litigation

3.3 Termination Right

Buyer may terminate before deadline if not satisfied.
Deposit returned: ☐ Full ☐ Less $[________]

ARTICLE 4: REPRESENTATIONS

4.1 Seller Represents

Licensing:
☐ Establishment license in good standing
☐ All stylists properly licensed
☐ No pending disciplinary actions

Financial:
☐ Financial statements accurate
☐ No undisclosed liabilities
☐ Taxes current

Operations:
☐ Client count accurately represented
☐ Equipment in working order
☐ No material issues

Staff:
☐ Staff status disclosed (employees vs. booth renters)
☐ No pending employment claims
☐ Worker classification proper

4.2 Buyer Represents

☐ Has authority to purchase
☐ Has funds/financing
☐ Will obtain required licenses

ARTICLE 5: STAFF AND STYLISTS

5.1 Current Staff Structure

Employees:
| Position | Name | Compensation |
|----------|------|--------------|
| [________] | [________] | $[________] |
| [________] | [________] | $[________] |

Booth Renters:
| Name | Weekly Rent |
|------|-------------|
| [________] | $[________] |
| [________] | $[________] |

5.2 Staff Transition

☐ Buyer will offer employment to employees
☐ Booth renters may continue under new agreements
☐ Seller to notify staff [____] days before Closing

5.3 Key Stylists

☐ Key stylists agreeing to stay: [________________________________]
☐ Retention bonuses: $[________]

ARTICLE 6: CLIENT TRANSITION

6.1 Client Records

☐ All client records transfer to Buyer
☐ Appointment history included
☐ Contact information included

6.2 Client Notification

☐ Joint announcement from Seller and Buyer
☐ Mailed to clients: ☐ Yes ☐ No
☐ In-salon announcement
☐ Social media announcement

6.3 Seller's Clients

☐ Seller's personal clients: [________________________________]
☐ Seller may continue serving select clients: ☐ Yes ☐ No

ARTICLE 7: NON-COMPETITION

7.1 Non-Compete

Seller shall not operate or work in a competing salon:
Geographic Area: Within [____] miles
Duration: [____] years

7.2 Non-Solicitation

Seller shall not solicit:
☐ Clients for [____] years
☐ Staff for [____] years

7.3 Exceptions

☐ Seller may work as stylist outside restricted area
☐ [________________________________]

ARTICLE 8: LICENSING

8.1 Establishment License

☐ Buyer applies for new establishment license
☐ License transfer (if permitted): [________________________________]
☐ Contingency if license not obtained

8.2 Timeline

☐ Buyer to apply by: [__/__/____]
☐ Estimated approval: [____] weeks

8.3 Interim Operations

☐ Seller continues operating until license issued
☐ Management agreement during transition
☐ Other: [________________________________]

ARTICLE 9: CLOSING

9.1 Closing Date

Date: [__/__/____]
Location: [________________________________]

9.2 Seller Delivers

☐ Bill of Sale
☐ Assignment of Lease
☐ Assignment of Contracts
☐ Non-Competition Agreement
☐ Keys and access codes
☐ Client records
☐ Equipment manuals
☐ Passwords (POS, website, social media)

9.3 Buyer Delivers

☐ Purchase price
☐ Note (if financing)
☐ Assumption agreements

9.4 Prorations

☐ Rent
☐ Utilities
☐ Prepaid expenses
☐ Gift certificates outstanding: $[________] credit to Seller

ARTICLE 10: INDEMNIFICATION

10.1 Seller Indemnifies

☐ Pre-Closing liabilities
☐ Employee/booth renter claims before Closing
☐ Tax liabilities
☐ Breach of representations

10.2 Buyer Indemnifies

☐ Post-Closing operations
☐ Assumed liabilities

10.3 Survival

[____] years

ARTICLE 11: TRANSITION

11.1 Transition Assistance

Duration: [____] days
Seller provides:
☐ Introduction to clients
☐ Introduction to vendors
☐ Staff training
☐ Operational guidance

Compensation:
☐ Included in price
☐ $[________] per day

ARTICLE 12: MISCELLANEOUS

12.1 Governing Law

State of [________________]

12.2 Disputes

☐ Mediation then arbitration
☐ Litigation in [________________] County

12.3 Entire Agreement

This Agreement constitutes entire agreement.

SIGNATURES

SELLER:

Signature: ________________________________
Printed Name: [________________________________]
Date: [__/__/____]

BUYER:

Signature: ________________________________
Printed Name: [________________________________]
Date: [__/__/____]

EXHIBIT A - EQUIPMENT LIST

[Detailed equipment inventory with condition and values]

This template is for informational purposes only. Beauty salon acquisitions involve licensing, worker classification, and regulatory considerations that vary by state. Both buyers and sellers should consult with qualified attorneys before completing any transaction.