Before welcoming hair stylists into your new salon, consider writing a booth rental agreement. Rely on the contract to avoid unpleasantness if the business relationship turns sour. Well-crafted booth rental agreements offer protection should the need to terminate arise. More important, with a booth rental in place from the beginning, booth renters know exactly what to expect during day-to-day operations. Independent contractors use the booth rental agreement as a guide to meeting expectations and resolving workplace issues.
Research booth rental agreement templates available online. (See Resource 1.) Speak with an attorney to draft an agreement, if you prefer. Consider employee classification for possible tax implications. (See Resource 2.)
Set monthly rental rates and booth sizes. Be specific on measurements. Consider the kinds of equipment the salon supplies and the equipment to be supplied by each renter.
Create a specific dress code with a list of banned fashions such as ripped jeans or other inappropriate attire. Spell out expected conduct of booth renters. Include specifics for the allowance of food and beverages within the salon and unacceptable conversation topics in family friendly salons.
Describe renter duties such as keeping common areas clean or maintaining towel supplies. Set expectations when it comes to answering phones, booking appointments and greeting customers.
Outline sales percentages for retail products sold in the salon. Make clear expectations for minimum monthly sales, if any, and clearly explain incentives for certain sale levels.
Set guidelines for staff participation in salon events, marketing and staff meetings. Create attendance rules. Clarify who is responsible for rescheduling appointments or finding coverage.
Outline clearly the steps each renter must take to terminate the contract. Include the time frame for submitting notice and the expected cleanliness of the booth.
Seek professional advice from a lawyer or accountant when in doubt.
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