Booth Rental Agreement Forms Explained

Renting a booth in a salon can be exciting, but it’s important to have a clear agreement in place. A booth rental agreement makes everything official and helps avoid misunderstandings.

The agreement explains how long the rental lasts, how much it costs, and when payments are due. Every agreement is different, but we’ll cover the basics and share an example made with Vagaro’s forms.

Why You Need a Booth Rental Agreement

In the U.S., a booth rental contract is needed for cosmetologists to establish themselves as independent contractors with the IRS. It also sets business expectations, ensures transparency, and supports a positive working relationship.

It also:

• Demonstrates professionalism on the part of both owners & booth renters
• Prevents misunderstandings or disputes over rent, lease duration, operating hours, and other details
• Legally protects salon owners and booth renters by clearly defining the terms of their arrangement
• Prevents disputes over who is responsible for the cost of repairs or damage to the rented space
• Protects salon owners and renters in case of accidents or liability claims (by requiring liability insurance)
• Protects a salon’s client base (through a non-compete clause)
• Serves as a reference point for resolving issues through legal means

Remember that in the U.S., rules around booth rental agreements can vary by state. For example, in some states, cosmetologists must have a booth rental and operator's license. While in others, cosmetologists must have an independent contractor license. Then again, several states do not allow the booth renting model at all¹. Do your research to ensure that you follow local and state laws.

Also pay close attention to the language used in your rental agreement. It should be clear and unambiguous. Vagaro’s booth rental agreement template was created by its legal team. It ensures user safety and provides legal assurance.

A booth renter's contract is easier to visualize with...an actual visual. So, we've provided a sample booth renter's agreement below.

Booth Renter Agreement Form Sample

Here is a PDF sample of a booth rental agreement made using Vagaro’s booth renter agreement form template for reference.

The image above is an example of page 1 of our 5-page sample booth renter's contract. Yep, five pages. Remember, this is not a complete example of all possible components in your agreement.

We’ll cover the details below, focusing on some of the more legally-oriented sections.

Booth Rental Agreement Sections

While all rental agreements share similarities, no two are exactly alike. Some sections, like termination conditions, may have slight wording differences.

Others, such as insurance obligations, non-compete clauses, or maternity leave, are optional.

Now, let’s break down the key sections of the booth rental agreement and why they matter.

Contact Information

Just the facts here. The opening part of your salon’s booth rental agreement identifies the:

• Date of the lease agreement
• Legal name, address & contact info of salon owner (the lessor)
• Legal name, address & contact info of the salon
• Legal name, address & contact info of the booth renter (the lessee)

This is basic stuff—unless you’re managing a salon with 10+ renters to keep track of. Vagaro’s Rent Collection feature simplifies payments. It automatically stores contact and payment details in employee profiles.

Premises & Booth Description

In this section, restate the leased premises, including the salon’s address.

Then, describe the specific booth or station being rented. Include its square footage, purpose (hair service, etc.), and location in the salon.

Term of Lease

Also called Type or Period of Lease, this section states key lease details.

It includes the start date, length, and basis (fixed, month-to-month, week-to-week, etc.). It also outlines conditions for ending the agreement, such as a 10-day written notice.

Rent Amount & Payment Terms

In this section, you’ll state the amount the renter must pay and the exact due date, e.g., “the first Tuesday of the month.” Also, specify the method of payment, e.g., cash, check, electronic transfer, etc. You can split Amount and Payment Method into two sections if you wish. When choosing a payment method, however, we suggest going digital, as it saves a lot of paper—and time.

Additionally, while one payment method is preferable, we suggest having a backup method available. Vagaro users can set primary and backup rental payment methods using the platform’s Rent Collection feature, further protecting them against missed or failed payments. It also gives them the choice to deduct product commissions from booth rent. If exercised, this choice is outlined in the booth rental agreement form.

Security Deposit

If applicable, state the required security deposit amount, usually one month’s rent.

Clearly explain when the deposit may be withheld, such as for unpaid rent or damages. Outline the process for returning it at the end of the lease.

Utilities & Expenses

Specify whether the rent includes utilities such as water, electricity, and heating. Clarify any added expenses or fees the booth renter is responsible for, such as cleaning supplies or business insurance.

Condition of Space

This section states that the lessee acknowledges and accepts the present condition of the rented space.

Use of Space

For this section, you must clearly define how the booth or station can be used. Outline any restrictions on the types of products, services, or equipment that can be used within the space. For example, specify if hair color products must be approved by your salon.

Operating Hours

Clearly state the hours during which the booth renter can use the space. This may align with the salon's business hours or provide flexibility for booth renters to set their own schedules.

Maintenance & Repairs

This section explains the responsibilities of both parties regarding maintenance and repairs.

Typically, the salon owner is responsible for maintaining the structure and common areas.

The booth renter is responsible for maintaining their rented space.

Taxes

This section outlines tax responsibilities for both the salon owner and booth renter. It clarifies who handles payments related to the rental agreement.

Property, Casualty & Liability Insurance

State whether the booth renter must have liability insurance and provide proof of coverage.

This section clarifies that the lessor's insurance covers business assets but not the lessee’s personal property.

If applicable, outline the minimum coverage requirements.

Indemnity

This section protects the salon owner from financial or legal issues caused by the booth renter's actions.

It details the renter's responsibility to indemnify or compensate the salon owner for claims, losses, or damages during the lease.

Default by Lessee

This section explains what happens if the booth renter fails to meet their obligations.

It protects the salon owner's interests and ensures the lease terms are followed.

Severability Clause

This section addresses what happens if one or more provisions of the agreement are found to be invalid, unenforceable, or illegal. It protects the overall enforceability of the agreement and ensures that the remaining provisions stay in effect even if some are deemed invalid.

(Mandatory) Arbitration

This section explains how disputes between the salon owner and renter will be handled. It specifies that arbitration will be used instead of traditional court litigation. Arbitration can be a faster, more cost-effective alternative for resolving disputes.

Assignment of Rights

This section explains when the salon or renter can transfer their rights, duties, or interests. It also details the conditions for assigning these responsibilities to another party.

Rules & Regulations

This section details the salon's specific rules and regulations that the booth renter must follow. This may encompass sanitation protocols, dress code or client scheduling policies, to name a few.

Renewal & Rent Increases

If applicable, outline the process for lease renewal and any provisions for rent increases. Specify the notice period required for changes in rent or lease renewal.

Non-Compete Clause

A non-compete clause is optional but helps protect the salon owner's client base. It restricts the booth renter from running a similar business within a set radius during or after the lease.

Governing Law

Statement clarifying that the Agreement will adhere to the laws and regulations of your state.

Modification of Agreement

This section explains how and when changes can be made to the booth rental agreement. It outlines the process and conditions for modifications.

Entire Agreement

This section essentially just confirms that the booth rental agreement represents the complete and final understanding between the salon owner and the booth renter.

Signatures

Remember to keep a copy of the signed booth rental agreement form for reference throughout the lease term. Rental agreements made using Vagaro can be stored securely in an employee’s profile and easily accessed at any time by both lessor and lessee for reference.

Appendices or Attachments

If needed, attach additional documents like an equipment inventory, approved product list, or salon policies handbook.

A fair, legally binding booth rental agreement is essential for both stylists and salon owners. Both parties should carefully review the terms before signing.

Legal counsel may help ensure the contract complies with local laws and protects both parties.

Vagaro’s Rent Collection feature offers a customizable booth rental agreement template. It’s one (big) way Vagaro helps you detangle the knots of running a business. Don’t take our word for it—take your 30-day FREE trial, instead, and experience it for yourself!

Sources: https://www.cosmetology-license.com