Running a salon with independent stylists can be wildly profitable—but only if your paperwork holds up when something goes sideways. As a Licensed Nurse, Legal Nurse Consultant (LNC), and Certified Risk Specialist (CRS), I review a lot of booth-rental disputes. Ninety percent of them trace back to missing or vague contract language. Below are the five clauses you should never skip if you rent chairs in Georgia.
1. Independent-Contractor Status (Not Employment)
Why it matters: Avoids surprise payroll-tax bills and wage-hour claims.
What to include:
- Explicit OCGA § 48-7 reference to renter’s sole responsibility for taxes.
- Statement that Salon has no control over hours, pricing, or methods—only shared standards (sanitation, branding).
2. Clear Compensation Model
Flat rent? Percentage split? Hybrid? Spell it out.
Key details:
- Exact dollar amount or commission percentage.
- Due date (e.g., every Friday by close of business).
- Late-fee schedule (1.5 %/month or OCGA-permitted maximum).
3. Confidentiality & Client-List Ownership
Problem: Stylists walk with your clientele.
Solution:
- Clause stating all client data collected inside the salon belongs to the salon.
- Non-disclosure of pricing, marketing plans, and trade secrets for at least 12 months post-exit.
4. Abandonment & Early-Exit Terms
Georgia landlords can re-let space after 14 days of uncommunicated absence (OCGA § 44-7-50).
Mirror the statute to:
- Define abandonment (14 consecutive no-shows).
- Impose early-termination buy-out (average weekly rent × remaining weeks ÷ 2).
5. Dispute Resolution & Venue
Skip small-claims chaos; go straight to arbitration.
- Binding AAA arbitration .
- Waiver of jury trial—enforceable under OCGA § 9-9-1.
- Prevailing-party attorney-fee clause (caps at 100 % of amount in controversy).
Bonus Clauses Worth Considering
- Cyber-Security & HIPAA language if renters store electronic client records.
- Social-Media Brand Protection: no negative reviews or disparagement while under contract.
- Emergency Coverage Plan: ensures clients aren’t stranded if a renter gets sick.
Need a Ready-Made Booth-Rental Agreement?
I’ve drafted an 8-page, Georgia-compliant template with all of these clauses and optional commission language—plus arbitration, non-recording covenant, and IC tax disclaimers.
Have unique circumstances (hybrid suites, med-spa services, multi-state stylists)? Order a custom draft and I’ll tailor every clause to your workflow in 3–5 business days.
Protect your chairs now—so the only thing you worry about is that next flawless fade.
Questions? Call The Element Hair Studio at (706) 350-4650 or drop a comment below.
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