Booth rentals can mean the leasing out of a booth to an exhibitor during exhibitions or trade fairs; it can also refer to the business of providing booths for special events such as weddings and birthdays. In the salon industry, booths are often rented out to stylists by salon owners; "booth rentals" can also refer to the act of letting a salon operator run the salon.
When preparing a booth rental contract, it is always wise to engage the services of a lawyer and a tax adviser. There might be legal procedures required which you may not know about, and specific licenses and rental forms may be needed. Always make sure that the booth rental contract is in written form.
To prepare your booth rental agreement:
If you're a salon owner, the contract to rent booths should be complete and concise. Even if the stylists can be considered independent contractors, they should follow the rules you will set for your salon business. It is advisable to write down terms on days of work, profit sharing, behavior inside the salon, dress code, duties, education and training and incentives in the rental forms. The stylists should also agree that they will help out in salon events and attend staff meetings.
Know what kind of taxes you need to pay as a salon owner, and what the salon operator or stylists are responsible for. Make sure this is embodied in the booth rental contract. Also, the duration of the booth rental should be clearly written down. Even if the contract is between family members, it is better to have it in written form, to avoid problems in interpretation later on. There could also be yearly reportorial requirements that you need to submit, so when you prepare your booth rental contract, specify the duties and responsibilities of each party.
If you're renting out exhibit booths for trade fairs, make sure that the person you're dealing with has the authority to represent the exhibitor. Write down the specifics of the rental—what kind of booth design, lighting, sound and products are allowed. The exhibitor must submit the complete payment once the contract is signed. It is advisable to state in your contract that if the exhibitor backs out, a portion of the rental payment will be retained. This is to discourage cancellation at the last minute.
Emphasize that you retain the right to disallow further use of the booth if it is being used in a manner contrary to what has been stated in the contract. Indicate in your contract that sub-lease is not allowed, and that the exhibitor must comply with State and Federal laws at all times within the area of the trade fair.
If you're in the business of renting out booths for special occasions, specify in your contract what kind of booth you're leasing out – a wedding tent, a photo booth or inflatable rentals, and the like. State clearly the price of your services. Specify the duration of the booth rental, and the limitations of its use.
Be vigilant and meticulous in preparing your booth rental contracts, and you won't have problems in your business. Detail is the key.