1. Booth Rental Renting “Space” in a Salon Mr. O 11/09 Name: ______________________________________________________ Teacher:_____________________________________________________

2. Salon Provides – Station Chair Mirror Sinks – Waiting Area – Heat / Air Conditioning – Hot Water – Atmosphere for Client (music/coffee/goodies) – Use of the Facilities – Phone (option)

3. Renter’s Responsibilities Operator “tools” Supplies (perms, color) Liability Insurance Disability Insurance Booth renter’s licensing Must take care of own taxes – (file as self-employed) – Self-employment tax Must take care of own accounting Must handle their own money during the day

4. In some cases: Retail is provided by owner 10% commission on sales is “given” to renter Owner cannot pay you directly, or you are considered an employee Note: if the owner wants to collect the money then pay you at the end of the day, that is not booth renting. They are not supposed to touch the money that is from your client. If you are considered an employee, the owner must pay your social security taxes. Important: a stylist must have an existing clientele to be able to justify the rent, supplies and advertising needed to be a booth renter.

5. Pros/Cons in booth renting Owners are responsible to create a safe working environment for booth renters. Renter can make own hours. Booth renter must pay rent even when they are not working. (no clients, vacation time) If renter has a good working relationship with the owner, they may have a key to the salon. Renter can dress as they choose, although some establishments may have contracts to cover dress codes.

6. Pros Cons.