Whether you're moving to booth rental or a hybrid model, your booth rental agreement needs to fit your state's laws and your salon's setup. Use these 3 templates as drafts for your salon while you get started. After the templates, this guide covers what to add and how much control you keep once renters move in.
Before you download: the three templates below are commercial lease forms, so you'll need to fill in details specific to your salon. And always get legal advice before a renter signs your agreement.
1) Booth rental agreement for salons in California
With its complex legal system, California booth renter agreements can be especially tricky.
This template sets a month-to-month term, with rent due on or before the first of each month. It also includes a signing incentive for new renters. The example offers one month of free base rent or a $200 allowance toward a new station mirror.
The form is a commercial lease with a California governing-law clause. It doesn't cover the booth renter conditions in California Labor Code section 2778, so plan to have a California employment attorney add them. Ask your attorney to write terms that match how renters actually work in your space.
Your booth rental agreement has to balance flexibility for renters with protection for your business, and this Texas template shows one way to do it. Renters can sublet their booth only with your prior written consent.
The template also leaves the late fee amount blank for you to set, with a 5-day grace period before it applies.
This template uses a year-to-year term with rent due monthly. If your bookings rise and fall with the seasons, weigh which term length best fits how you want to fill your booths. For shorter commitments, compare the month-to-month terms in the California and Texas templates.
A booth rental agreement should spell out what renters pay for their space and what happens when the arrangement changes. If you're using a template, tailor these details to your salon before sending it for legal review. An attorney drafting yours from scratch will need your answers on each point below.
Make sure the agreement covers:
The rent amount and what it includes, such as utilities
When rent is due and how often you charge it
The booth space and the equipment that comes with it
The services renters are permitted to offer in your salon
The lease term and whether renters can sublet their booth
Late fees and any grace period before they apply
Penalties for breaking the lease early
Who keeps client contact info and booking history when a renter leaves
View our booth rental video
Check out our video about managing booth renters in Mangomint's salon software.
Booth renters run their own business inside your salon. How much you control the way they work affects whether they're treated as independent or as employees.
For federal tax purposes, IRS guidance on independent contractors weighs the entire relationship, especially the right to direct the worker. In a salon, that control can look like requiring renters to follow your systems or set prices your way, which can point toward employment. A written agreement is one factor in that review, so the way renters actually work matters too.
Getting this wrong has a cost. A business treating an employee as a contractor without a reasonable basis may be held liable for that worker's employment taxes.
Shared space works the same way. Asking renters to help keep the salon calm for clients is a reasonable expectation. Still, setting rules for how they do their work or run their business is the kind of control federal guidance weighs.
If you want this level of control over your business, the booth renter or hybrid model might not be for you. State rules vary, so have an employment attorney review the expectations in your agreement before renters sign.
Set up your salon software for booth renters
Renters need a few settings your employees don't, mostly around who gets paid and who sees which clients. If you're moving to a booth rental or hybrid model, Mangomint lets you:
Set up payment accounts for booth renters so payments go to their own bank account. By default, gift card and membership sales come to you.
Collect booth rent with a membership, automatically or manually for each renter. This works best when rent is the same each billing period.
Assign product owners so renter-owned retail sales go to the renter's account. Product commission is paid out separately, based on your compensation model.
Mangomint can route checkout payments to each renter's own bank account and collect booth rent through memberships. Try it now with a free trial, or book a live demo to see how booth renter payments work.
Frequently Asked Questions
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What should a salon booth rental agreement include?
Cover the payment terms and the space renters get for their rent. Then add exit terms, such as the lease length and who keeps client records when a renter leaves. Have an attorney review the final version for your state.
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Are booth renters independent contractors?
They can be, but calling someone a booth renter doesn't settle it. For federal tax purposes, the IRS looks at how much right you have to control the way renters work. State rules vary (California sets specific booth renter conditions in Labor Code section 2778), so check with an employment attorney.
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Can I require booth renters to use my salon software?
You can offer your software and explain what changes if renters use another system, such as booking shared equipment. Making software a requirement is a form of control over how renters work, and that control can point toward employment for federal tax purposes. Rules vary by state, so ask an employment attorney before you add that condition.
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Can I use these booth rental agreement templates as they are?
Use them as a starting point. All three are the same commercial lease form, with a governing-law clause for each state. Before using one replace example entries, such as the sample commencement date and booth contents, edit the permitted-use line, which says hair salon services, if renters offer barbering or other services, and have an attorney review the finished agreement.
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How can I collect booth rent automatically?
In Mangomint, you can set up booth rent as a membership with a billing frequency that matches your rent schedule. You choose whether each renter is charged automatically or manually. This approach works best when a renter pays the same amount every billing period.
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Who keeps the client list when a booth renter leaves?
Your agreement should say, so settle it before a renter signs. If your salon is in California, keep in mind that the section 2778 conditions include the renter having their own book of business. In Mangomint, client ownership settings can limit each renter's access to their own clients.
Emily Holzer is a Content Marketing Manager at Mangomint. She has a master’s degree in English and a passion for helping salons, spas, and other local beauty businesses thrive. When she is not writing, you can find her playing chess or tending to her houseplants. Fun fact: Emily has donated 8 ponytails (so far) across 5 hair loss charities in the U.S.
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