This Rent-a-Chair Contractor Agreement is an arrangement between a salon or clinic and a freelance stylist/technician who is allowed to use a room, chair or booth in the salon or clinic’s premises to operate its business. It can be an excellent way for a salon or beauty clinic owner to earn extra income from their space.
Who is a Rent-a-Chair Contractor Agreement for?
Owners of any hair salon, barber salon, beauty salon, nail salon, tattoo studio, tanning salon, day spa, massage parlour, eyebrow and lash bar, hair removal clinic…basically any beauty business! This agreement is also for any freelance hairdressers or beauty biz professionals wanting to avoid the upfront cost, time and energy of setting up their own salon. This agreement is unsuitable if you want an employee as it does not create an employment relationship between the parties – see our Individual Employment Agreement if you need an employee.
Why do I need a Rent-a-Chair Agreement?
Rent-a-chair type arrangements can work well for both sides, but to protect your salon, your clients and your reputation, it is essential to get your specific arrangement clearly documented so that both you and the freelancer are on the same page from the start (particularly as to fees and payment). It is also important to have a clear written agreement with the freelancer to avoid the IRD interpreting the arrangement as an employer-employee relationship (as opposed to an independent contractor relationship) which would require you to pay all employment entitlements (annual leave, sick leave etc).
What does a Rent-a-Chair Contractor Agreement cover?
The Rent-a-Chair Contractor Agreement is simple, easy to understand, without legalese and fair to both sides, to reduce negotiation time and start the relationship positively. Importantly, it states that the freelancer is an independent contractor, not an employee. It covers all the key terms of the relationship (with lots of flexibility for you to customise to your circumstances) such as fee (with options for fixed fee, percentage of freelancer’s earnings, or a combination of both), bond, outgoings and utility charges, equipment/facilities provided by the salon, marketing, client list, and optional non-competition and non-solicitation restraints (to stop the freelancer from taking your clients or employees away or setting up in competition to you).
Renting a separate room to the freelancer (as opposed to just a chair or booth within your space) might be considered ‘subleasing’ under your lease, which typically requires prior written approval from the landlord. Check the terms of your lease before you commit to anything.
How long will it take to create my document?
Around 10 minutes – do it on your next coffee break! You will need to complete the Q&A within 10 days of purchase (after that your access will expire). Please reach out to us at hello@onyourterms.co.nz if you have any issues.
What information do I need to complete the Q&A?
- The name and contact details of the salon owner and independent contractor
- The start and end date for the arrangement
- The space being rented, access hours, fee (with optional bond), payment terms, what equipment/facilities are being provided by the salon
- The duration and area of any non-competition and non-solicitation restraints
- Agreed arrangements for client bookings, marketing, payment systems, and ownership of the client list
What if I need help?
We’d love to help. Just contact us at hello@onyourterms.co.nz and we can either help over email or jump on a call.
Your document will be downloadable in MS Word, so you can make changes if you like (and add branding). Also, our legal partner, Luminate Legal, can provide legal advice for a fixed price if you’d like it.
What do I do once my document is created?
The agreement is ready to sign as soon as you have downloaded it. Both parties must sign it to ensure it’s legally enforceable, and this should be done before the contractor starts work. If you need help with how to sign the Rent-a-Chair Agreement, read our helpful blog here.
Other names for this agreement:
- Salon booth rental agreement
- Salon licence agreement
Other helpful information:
- Check out our blogs: Employee vs Contractor - What’s the difference?, When a Rent-a-Chair Arrangement is the perfect solution
- You may also find these bundles or documents useful for your business: Term Sheet for Project, Services Agreement, Individual Employment Agreement, Influencer Agreement, Hair & Beauty Sales Essentials Bundle
- Check out our FAQs here
If you’re unsure whether this agreement is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
If you’re not satisfied with your purchase of this product for any reason, let us know why within 10 days of your purchase and we’ll work with you to make sure you’re happy, including giving you a full refund if necessary.
Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations, and may not be suitable for your needs or circumstances. If you need legal advice, we have a network of specialist law firm partners able to help you here.