A booth rental contract is a legal agreement that affects your business for months or years. Yet many stylists sign without reading carefully—then regret it when issues arise. Take time to review these key terms, ask questions about anything unclear, and negotiate before you sign. It's much harder to change terms later.
Basic Terms to Verify
Start with the fundamentals. Make sure these basics are clearly stated.
- Your legal name and the salon's legal business name
- Exact rental amount and payment schedule
- What's included in rent (utilities, supplies, etc.)
- Start date and contract length
- Whether you're classified as independent contractor (not employee)
- Physical address and specific chair/suite assignment
Pro tip: Get everything in writing. Verbal promises don't hold up if there's a dispute.
Payment Terms
Clear payment terms prevent misunderstandings and disputes.
- Exact rent amount and how it's calculated
- Payment due date and acceptable payment methods
- Late payment penalties (should be reasonable)
- Security deposit amount and conditions for return
- Whether rent can increase and how much notice required
- Consequences of non-payment
Schedule & Access
Understand when you can work and access the space.
- Your allowed operating hours
- Access to keys/codes and 24/7 availability
- Holiday closures and reduced hours
- Minimum hours required (if any)
- How schedule conflicts are handled
- After-hours access policies
Termination Clauses
Know how either party can end the agreement.
- Required notice period (typically 30-60 days)
- Early termination penalties, if any
- Conditions for immediate termination by either party
- What happens to your deposit upon termination
- Process for returning keys and removing belongings
- Non-compete or client solicitation restrictions
Insurance & Liability
Clarify who's responsible for what and what coverage is required.
- Whether you're required to carry professional liability insurance
- Minimum coverage amounts required
- Who's responsible if a client is injured
- Damage to your equipment or the salon's property
- Whether the salon's insurance covers you at all
- Requirements to name salon as additional insured
Client Ownership
This is critical. Who "owns" the clients you serve?
- Confirm your clients are your clients, period
- No non-compete preventing you from taking clients if you leave
- Access to client contact information you've collected
- Who handles booking—you or the salon?
- Restrictions on contacting clients outside the salon
- What happens to existing clients when you leave
Pro tip: Avoid contracts that restrict you from working with your clients elsewhere. Your clients are your business.
Rules & Policies
Understand the operating rules you'll need to follow.
- Dress code requirements
- Product usage restrictions (required to use certain brands?)
- Pricing restrictions (can you set your own prices?)
- Guest policies (other stylists using your station)
- Cleanliness and maintenance responsibilities
- Client behavior policies
- Social media and marketing rules
Contract Red Flags
Walk away or negotiate hard if you see these terms.
- Non-compete clauses that prevent working nearby after leaving
- Automatic rent increases without caps
- Penalties for taking vacation or slow weeks
- Requirement to use only salon-provided products at markup
- Vague termination terms that favor the salon
- Restrictions on your client relationships
- No written contract at all—insist on one
- Pressure to sign immediately without time to review
What You Can Negotiate
Many terms are negotiable. Don't assume the contract is take-it-or-leave-it.
- Rent amount and payment schedule
- Security deposit amount
- Notice period for termination
- Rent increase caps and notice requirements
- Trial period at reduced rate
- Removal of non-compete clauses
- What's included in rent
Frequently Asked Questions
For a significant commitment (6+ months or high rent), it's worth the $200-$500 for a lawyer's review. They'll catch issues you might miss. At minimum, have an experienced booth renter friend review it.
Insist on one. Operating without a written agreement leaves you vulnerable. If the salon refuses, that's a major red flag. At minimum, exchange emails confirming key terms to create a written record.
Yes. Everything is negotiable until you sign. Cross out objectionable terms, write in changes, initial them, and have the salon initial too. If they won't negotiate on dealbreaker terms, find another space.