Salon Booth Rental Agreement

SALON BOOTH RENTAL AGREEMENT

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

SALON OWNER ("Owner"):
Name: [________________________________]
Salon Name: [________________________________]
Address: [________________________________]
City: [________________] State: [____] ZIP: [________]
Phone: [________________________________]
Email: [________________________________]
Establishment License #: [________________________________]

BOOTH RENTER ("Renter"):
Name: [________________________________]
DBA (if applicable): [________________________________]
Address: [________________________________]
City: [________________] State: [____] ZIP: [________]
Phone: [________________________________]
Email: [________________________________]
Cosmetology License #: [________________________________]
License Expiration: [__/__/____]

IMPORTANT STATE-SPECIFIC NOTICE

BOOTH RENTAL RESTRICTIONS VARY BY STATE:

• Some states (e.g., Pennsylvania) prohibit booth rentals in salons
• California (AB 5) imposes strict independent contractor tests
• Many states require booth renters to have separate licenses
• Worker misclassification can result in significant penalties

Verify your state's laws before entering this agreement.

ARTICLE 1: BOOTH SPACE

1.1 Rented Space

Owner agrees to rent to Renter, and Renter agrees to rent from Owner:

Salon Location: [________________________________]
Booth/Station Number: [________________________________]
Space Description: ☐ Styling Station ☐ Private Room ☐ Designated Area

Space Includes:
☐ Styling chair
☐ Mirror
☐ Work counter/station
☐ Storage cabinet/drawers
☐ Electrical outlets
☐ [________________________________]

1.2 Common Areas

Renter shall have access to:
☐ Reception/waiting area
☐ Shampoo area/bowls
☐ Restrooms
☐ Break room
☐ Product storage area
☐ Laundry facilities
☐ Parking
☐ [________________________________]

1.3 Dedicated vs. Shared

☐ Dedicated Space - Renter has exclusive use
☐ Shared Space - Space shared with: [________________________________]
☐ Time-Share - Renter's dedicated hours: [________________________________]

ARTICLE 2: TERM

2.1 Rental Term

Commencement Date: [__/__/____]
Term: ☐ Month-to-Month ☐ [____] months ☐ [____] year(s)
Expiration Date (if fixed): [__/__/____]

2.2 Renewal

☐ Automatic month-to-month renewal after initial term
☐ Renewal requires written agreement
☐ Notice required for non-renewal: [____] days

2.3 Termination

Without Cause:
☐ Either party with [____] days written notice

For Cause (Immediate):
☐ Loss or suspension of cosmetology license
☐ Violation of salon policies
☐ Failure to pay rent for [____] days
☐ Illegal activity
☐ Conduct harmful to salon reputation

ARTICLE 3: RENT AND FEES

3.1 Booth Rent

Rent Amount: $[________] per ☐ week ☐ month

Rent Due: [____] day of each ☐ week ☐ month
First Rent Payment Due: [__/__/____]

3.2 Payment Terms

Payment Method:
☐ Cash
☐ Check payable to: [________________________________]
☐ Electronic payment to: [________________________________]
☐ Auto-debit authorized: ☐ Yes ☐ No

Late Fee: $[________] or [____]% if not paid within [____] days

3.3 Security Deposit

Deposit Amount: $[________]
Due: Upon signing
Applied to: Damage, unpaid rent, cleaning
Return: Within [____] days after termination, less deductions

3.4 Rent Structure

☐ Flat Rate - Fixed weekly/monthly amount

☐ Percentage of Gross - [____]% of Renter's gross revenue

• Minimum guarantee: $[________]
• Revenue reporting required: ☐ Weekly ☐ Monthly

☐ Hybrid - Base rent of $[________] plus [____]% of gross over $[________]

3.5 What's Included in Rent

☐ Use of booth/station
☐ Utilities (electric, water, heat/AC)
☐ Common area access
☐ Wifi/internet
☐ Basic supplies (towels, capes): ☐ Yes ☐ No
☐ Use of shampoo bowls
☐ Reception services: ☐ Yes ☐ No
☐ Appointment booking system: ☐ Yes ☐ No
☐ Credit card processing: ☐ Yes ☐ No
☐ [________________________________]

3.6 Additional Charges (Not Included)

☐ Products/supplies - Renter provides own
☐ Laundry service: $[________]/month
☐ Towel service: $[________]/month
☐ Reception/booking fee: $[________]/month or [____]% of bookings
☐ Credit card processing: [____]% of transaction
☐ After-hours access: $[________]
☐ Continuing education room: $[________]/use
☐ [________________________________]

ARTICLE 4: INDEPENDENT CONTRACTOR STATUS

4.1 Independent Business

THE PARTIES EXPRESSLY AGREE THAT RENTER IS AN INDEPENDENT CONTRACTOR AND NOT AN EMPLOYEE OF OWNER.

Renter operates as an independent business and shall:
☐ Maintain own business license
☐ Set own prices for services
☐ Set own work schedule
☐ Provide own tools and products
☐ Build and maintain own clientele
☐ Collect payments directly from clients
☐ Pay own business taxes
☐ File own tax returns

4.2 IRS Requirements

To maintain independent contractor status per IRS guidelines, Renter:
☐ Controls how services are performed
☐ Has opportunity for profit or loss
☐ Has significant investment in business
☐ May provide services to multiple businesses
☐ Is responsible for own business expenses

4.3 No Employee Benefits

Renter shall NOT receive:
☐ Health insurance
☐ Retirement benefits
☐ Paid time off
☐ Workers' compensation
☐ Unemployment insurance
☐ Any employee benefits

4.4 Tax Responsibility

☐ Renter responsible for all taxes (federal, state, local, self-employment)
☐ Owner will issue Form 1099-NEC if rent paid via percentage
☐ Owner will NOT withhold taxes from Renter

4.5 State-Specific Requirements

State: [________________]

☐ Renter has booth rental license (if required): #[________________________________]
☐ Renter registered with state labor department (if required)
☐ State-specific requirements met: [________________________________]

ARTICLE 5: RENTER'S BUSINESS OPERATIONS

5.1 Services Offered

Renter may provide the following services (within license scope):
☐ Hair cutting and styling
☐ Hair coloring and chemical services
☐ Hair extensions
☐ Waxing
☐ Makeup application
☐ Nail services (if separately licensed)
☐ Skincare/esthetics (if separately licensed)
☐ Other: [________________________________]

5.2 Hours of Operation

Salon Hours:
Monday: [________] to [________]
Tuesday: [________] to [________]
Wednesday: [________] to [________]
Thursday: [________] to [________]
Friday: [________] to [________]
Saturday: [________] to [________]
Sunday: [________] to [________]

Renter's Hours:
☐ Renter sets own hours within salon operating hours
☐ Minimum hours required: ☐ Yes ([____] hours/week) ☐ No
☐ After-hours access: ☐ Available ☐ Not available

5.3 Pricing

☐ Renter sets own prices (independent contractor requirement)
☐ Renter's prices independent from salon menu
☐ Renter provides own price list to clients

5.4 Appointments

☐ Renter schedules own appointments
☐ Renter uses own booking system
☐ Renter may use salon booking system: ☐ Yes ☐ No (fee: $[________])
☐ Renter maintains own appointment book

5.5 Payments and Collections

☐ Renter collects all payments directly from clients
☐ Renter processes own credit card payments
☐ Payments NOT processed through salon register
☐ Renter issues own receipts

☐ OR Salon processes payments (additional fee applies): [____]%

• NOTE: This arrangement may affect independent contractor status

5.6 Products and Supplies

☐ Renter provides ALL products used on clients
☐ Renter provides own tools, equipment, supplies
☐ Renter may purchase products from Owner at wholesale: ☐ Yes ☐ No
☐ Renter may retail products to clients: ☐ Yes ☐ No

5.7 Client Ownership

☐ Renter owns relationship with Renter's clients
☐ Renter may take client contact information upon departure
☐ Renter responsible for maintaining client relationships
☐ Owner may not redirect Renter's clients to other stylists

ARTICLE 6: LICENSING AND INSURANCE

6.1 Required Licenses

Renter shall maintain at all times:
☐ Valid state cosmetology license
☐ Booth rental license (if required by state)
☐ Business license
☐ Sales tax permit (for retail sales)
☐ Any specialty licenses for services offered

Renter shall provide copies of all licenses to Owner.

6.2 License Display

☐ Renter's license displayed at booth
☐ Renter's business license displayed

6.3 Insurance

Renter shall maintain:

☐ Professional Liability Insurance

• Minimum coverage: $[________] per occurrence
• Minimum aggregate: $[________]

☐ General Liability Insurance

• Minimum coverage: $[________]

☐ Product Liability (if selling products)

• Minimum coverage: $[________]

Certificate of insurance:
☐ Provided before commencement
☐ Names Owner as additional insured
☐ Updated annually

6.4 Workers' Compensation

☐ Not required (Renter has no employees)
☐ Required if Renter employs assistants

ARTICLE 7: OWNER'S OBLIGATIONS

7.1 Facility Maintenance

Owner shall:
☐ Maintain salon in clean and sanitary condition
☐ Maintain all common equipment in working order
☐ Provide adequate utilities
☐ Maintain required salon licenses
☐ Comply with health and safety regulations
☐ Provide adequate lighting and ventilation
☐ Maintain restroom facilities

7.2 No Control Over Services

Owner shall NOT:
☐ Control how Renter performs services
☐ Set prices for Renter's services
☐ Set Renter's work schedule
☐ Require Renter to attend meetings/training
☐ Require Renter to use specific products
☐ Control Renter's client interactions

7.3 Common Supplies (if included)

Owner provides:
☐ Towels and linens: ☐ Yes ☐ No
☐ Shampoo/conditioner at shampoo bowls: ☐ Yes ☐ No
☐ Cleaning supplies for common areas
☐ [________________________________]

ARTICLE 8: RULES AND REGULATIONS

8.1 Salon Policies

Renter agrees to follow reasonable salon policies regarding:
☐ Cleanliness and sanitation standards
☐ Appearance of work area
☐ Professional conduct
☐ Noise levels
☐ Parking
☐ Emergency procedures
☐ Security protocols

NOTE: Excessive rules may affect independent contractor status

8.2 Sanitation Requirements

Renter shall:
☐ Comply with state board sanitation requirements
☐ Sanitize tools and equipment
☐ Maintain clean work area
☐ Properly dispose of waste
☐ Follow blood-borne pathogen procedures

8.3 Prohibited Activities

Renter shall NOT:
☐ Perform services outside license scope
☐ Smoke on premises
☐ Consume alcohol or drugs on premises
☐ Conduct illegal activities
☐ Harass other renters, clients, or staff
☐ Damage salon property
☐ Store hazardous materials improperly

8.4 Quiet Enjoyment

Owner shall not unreasonably interfere with Renter's business operations.

ARTICLE 9: SIGNAGE AND ADVERTISING

9.1 Business Identity

☐ Renter may use own business name
☐ Renter may display own business cards
☐ Renter may display own credentials/awards

9.2 Restrictions

☐ Renter may not modify salon signage
☐ Renter may not advertise address without "at [Salon Name]"
☐ Owner approval required for: [________________________________]

9.3 Social Media

☐ Renter may use own social media accounts
☐ Renter may photograph work in salon
☐ Renter should credit salon location when appropriate

ARTICLE 10: INDEMNIFICATION

10.1 Renter's Indemnification

Renter shall indemnify Owner against:
☐ Claims arising from Renter's services
☐ Client injuries from Renter's services
☐ Product liability claims from Renter's products
☐ Renter's employee claims (if any)
☐ Renter's negligence

10.2 Owner's Indemnification

Owner shall indemnify Renter against:
☐ Claims from salon facility defects
☐ Owner's negligence
☐ Common area accidents not caused by Renter

10.3 Limitation of Liability

Owner not liable for:
☐ Theft of Renter's property
☐ Damage to Renter's equipment
☐ Loss of Renter's business/income

ARTICLE 11: DISPUTE RESOLUTION

11.1 Governing Law

State of [________________]

11.2 Dispute Resolution

☐ Good faith negotiation first
☐ Mediation before litigation
☐ Small claims court for disputes under $[________]
☐ Litigation in [________________] County

11.3 Attorneys' Fees

Prevailing party entitled to attorneys' fees.

ARTICLE 12: END OF AGREEMENT

12.1 Upon Termination

Renter shall:
☐ Remove all personal property within [____] days
☐ Return keys/access devices
☐ Leave booth in clean condition
☐ Pay any outstanding rent

12.2 Abandoned Property

Property not removed within [____] days:
☐ Becomes Owner's property
☐ May be disposed of by Owner
☐ Storage charges may apply: $[________]/day

12.3 Client Information

☐ Renter may take own client contact information
☐ Renter may notify clients of relocation
☐ Owner shall not interfere with Renter's client relationships

ARTICLE 13: MISCELLANEOUS

13.1 Entire Agreement

This Agreement constitutes the entire agreement.

13.2 Amendments

Amendments must be in writing signed by both parties.

13.3 Notices

Written notices to addresses above.

13.4 Severability

Invalid provisions do not affect remainder.

13.5 Non-Waiver

Failure to enforce is not waiver.

13.6 Assignment

Renter may not assign or sublease without Owner consent.

13.7 Relationship of Parties

Nothing creates employment, partnership, or agency relationship.

ARTICLE 14: SPECIAL PROVISIONS

14.1 Non-Compete

☐ No non-compete (may affect independent contractor status)

☐ Limited non-compete:

• Within [____] miles for [____] months after termination
• NOTE: Extensive non-competes may indicate employee status

14.2 Product Sales

☐ Renter may sell products to clients
☐ Sales tax collection: Renter's responsibility
☐ Renter provides own inventory
☐ Commission to Owner on product sales: ☐ None ☐ [____]%

14.3 Assistants

☐ Renter may hire own assistants: ☐ Yes ☐ No
☐ Assistants must have proper licensing
☐ Assistants are Renter's employees, not Owner's
☐ Renter responsible for assistant's actions

SIGNATURES

SALON OWNER:

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

BOOTH RENTER:

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

EXHIBIT A - INVENTORY OF INCLUDED ITEMS

EXHIBIT B - SALON RULES AND REGULATIONS

[Attach reasonable salon policies - remember excessive rules may affect independent contractor status]

This template is for informational purposes only. Booth rental arrangements involve significant worker classification risks that vary by state. Misclassification can result in liability for back taxes, penalties, and benefits. Both salon owners and booth renters should consult with qualified employment attorneys and tax professionals before entering into any booth rental arrangement.