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Rent-a-room Agreement

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If you run a hair or beauty salon and you have room to spare, licencing (or “renting”) this additional room to freelancers can be an effective way to add an additional income stream to your business. This arrangement also works really well for freelancers who need a place to work but who may not want to rent out an entire salon!

A clearly drafted “rent a room” agreement will help to ensure that the parties are aware of their responsibilities and obligations prior to use of the room.

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Frequently Asked Questions

The “Rent-a-room” Agreement contains the following key terms:

  • Duration: The duration of the proposed arrangement i.e. the Term
  • Termination: A right for either party to terminate the arrangement if it is not working out for either party
  • Fees: The applicable licence fees (whether It be as a daily rate or a % of the total revenue)
  • Days/Hours: The days and hours that the room will be available
  • Inclusions: Any applicable inclusions (e.g. access to common areas, use of common reception and waiting areas)
  • Obligations: The obligations of the freelancer, including keeping it in good condition; complying with certain WHS standards; that the freelancer must provide their own equipment and tools; that the freelancer is responsible for their own marketing and business expenses; and must have their own method to receive payment
  • Confidentiality: that both parties keep the other party’s confidential information, confidential. It also contains a clause that protects any client details that were not known to the other party at the time of entry into the Agreement. This means that the freelancer cannot run off with the business owners client list and vice versa!

This agreement is for those running a hair or beauty salon with a room to spare. You can use this agreement to licence (or rent) this additional room to freelancers.

You can also use this agreement if you are a freelancer looking for a place to work but don’t want to use an entire salon.

This Agreement is for the use of a “room”. If the arrangement relates to the use of a “chair” then consider purchasing our “rent-a-chair” agreement.

This Agreement can be used by both freelancers or salon owners. However, please ensure that you read the terms carefully to make sure that they clearly reflect the commercial arrangement you have made.

This Agreement is for the use of a “room”. If the arrangement relates to the use of a “chair” only, please use a “Rent a Chair” agreement.

It is extremely important that the freelancer brings their own equipment, and manages their own finances and marketing. Basically, they must be their own boss -running their own business to classify as a freelancer/contractor. If a salon owner is using this kind of arrangement as a way to avoid paying payroll costs like leave entitlements or wages, then legal issues can arise and the freelancer may be classified as an employee. Please make sure you obtain appropriate legal advice If you have any concerns about this.

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Disclaimer
Cherrypicka is not a law firm and we do not provide legal advice. No client / solicitor relationship is formed between you and us when you purchase and use our templates. Our templates are general in nature. They may not cover every situation or law that applies to you or your specific circumstances. If you have any questions, concerns or are unsure whether the template is right for you or your business, you must see a qualified lawyer before using our templates. Our templates are not intended to be a substitute for legal advice. Our templates are based on laws current at the time of purchase and are based on Australian law. They are not suitable for use outside of Australia.
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