What is a Beauty Room Rental Agreement?
A Beauty Room Rental Agreement is a contract to rent a room in a beauty salon/spa to a freelancer, such as a beauty therapist, masseuse or cosmetic practitioner.
The freelancer is self-employed and runs their own business. As an independent contractor, they have their own clients, set their own hours and provide their own equipment. They pay a Licence Fee to the salon to use part of the premises.
If you have a beauty room to rent, our template has you covered! Salon owners and freelancers can both use this contract.
Who can use this template?
- Beauty Salons
- Nail Salons
- Tanning Salons
- Hair Salons
- Day Spas
- Massage Parlours
- Tattoo Studios
- Waxing Salons
- Laser Hair Removal Salons
- Eyebrow and Lash Bars
- Body Piercing Studios
- Dermal Therapy Clinics
- Suitable for all Australian states and territories
Do I need a contract to rent a room in a beauty salon?
Yes, we recommend using a formal contract if you’re renting out a room.
It’s essential to manage a room rental properly so that you protect your salon, your clients and your reputation.
Setting out clear guidelines in a contract will make things easier for everyone.
What does the Beauty Room Rental Agreement cover?
Our Beauty Room Rental Agreement template covers everything you need to make things official:
- Licence Fees – will you charge a fixed Licence Fee (weekly/monthly), a percentage of takings, or a combination of both?
- Bond – the amount you will charge as a security deposit
- Term of Agreement – e.g. one year
- Permitted Use – the services they are allowed to carry out at your salon
- Access and Hours of Work – can they work whenever they want, or only during your salon opening hours? Any restrictions in your lease?
- Signage – rules for signage
- Insurance – what insurances do you require the contractor to have and maintain?
- Operating Expenses – are charges for cleaning, electricity and other utilities included?
- Responsibilities – use of the premises and associated obligations
- Inclusions – what does the ‘rent a room’ in the beauty salon include?
- Marketing – normally, the renter is responsible for marketing their own business, rather than relying on the salon’s existing client database
- Client Contacts – who owns the client database, and what happens when they leave
- Records – a record of sales (e.g. receipts) to make sure they are paying you the right amount
- Termination – how can either party terminate the agreement?
- Dispute Resolution – process to deal with disputes
How much does it cost to Rent A Room in a beauty salon?
There a few different ways you can charge for renting a room in a salon:
- Fixed Rent – the renter pays a set amount per day/week/month
- Percentage Commission – the salon owner takes a cut of the renter’s total revenue from clients
- Combination – the salon charges both fixed rent AND a percentage of income from the renter
We have included all of these options in our template. You just need to choose the one you want to use.
The actual amount you charge depends on what you negotiate and what both parties consider to be a fair amount.
How do payments get processed?
It’s best practice for a freelancer to have their own payment facilities (such as a Square Card Reader or EFTPOS machine).
However, some salons agree to take payments on behalf of the freelancer and then reimburse them each week. If you do this, make sure you keep very accurate records!
Is this Beauty Room Rental Agreement template legally binding?
Absolutely!
All of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.
We are affiliated with a commercial law firm based in Sydney.
