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The short answer
A chair rental agreement should state the station rented, the rent and when it is due, any deposit, what the salon provides (power, water, chair, reception), whose products the stylist uses and whether they may sell retail, who owns client details, and how either side ends the arrangement. A copyable template is below; adapt it and have a lawyer review it before signing.
Under chair rental, a stylist pays the salon a fixed rent for a station and keeps what they earn from their own clients. It suits experienced stylists with a following, and salon owners who want predictable income without managing a full team. It also causes disputes when the terms are not written down: who pays for the generator, whose products are on the shelf, and who owns the client list when the stylist leaves.
Chair rental versus employment
A chair renter should be running their own business: setting their own prices and hours, booking their own clients, buying their own products and keeping their own records. If the salon controls all of that, the stylist may in practice be an employee, whatever the agreement says, and the salon may carry an employer's obligations. Write the agreement to match how the arrangement really works.
The template
- Parties. This agreement is between [salon business name, RC/BN number], of [address] ("the Salon"), and [stylist full name], of [address] ("the Stylist").
- Station. The Salon rents to the Stylist the use of [station number/description], including one styling chair, mirror and [list equipment], during the Salon's opening hours of [days and times].
- Term. This agreement starts on [date] and continues until ended under clause 12.
- Rent. The Stylist pays ₦[amount] per [week/month], in advance, by [day], by transfer to [account name and number]. The Salon issues a receipt for each payment.
- Late payment. If rent is more than [number] days late, the Salon may [suspend use of the station / charge ₦(amount)] after written notice.
- Deposit. The Stylist pays a refundable deposit of ₦[amount] on signing, returned within [number] days of the agreement ending, less unpaid rent and the cost of repairing damage beyond normal wear, with a written breakdown.
- What the Salon provides. Power (including generator during opening hours), water, washing basins, reception area, cleaning of common areas, and [Wi-Fi, towels, other].
- Products. The Stylist supplies and pays for all products used on their clients. [Option: The Stylist may buy products from the Salon at ₦(price) or (percentage) below retail.] The Stylist [may / may not] sell retail products in the Salon [except products supplied by the Salon on (terms)].
- Prices and payment. The Stylist sets their own prices and takes payment from their clients into their own account, and is responsible for their own records and tax.
- Client details. Clients the Stylist brings to the Salon, and their contact details, belong to the Stylist. Clients who book through the Salon's reception, phone line or social media pages belong to the Salon. On leaving, neither party will use the other's client list to solicit clients for [period].
- Conduct and hygiene. The Stylist keeps the station clean, sterilises tools, follows the Salon's health and safety rules, and is responsible for the work they do on clients.
- Ending the agreement. Either party may end this agreement with [number] weeks' written notice. The Salon may end it immediately for [non-payment over (number) days / serious misconduct].
- Disputes. The parties will first try to resolve any dispute by discussion, then by mediation, before going to court.
- Signatures. Signed by both parties and one witness each, with dates.
Notes on the key clauses
Rent and deposit
Example figures: rent of ₦25,000 a week and a deposit equal to two weeks, ₦50,000. Weekly rent matches how many stylists earn; monthly is easier to administer. Whichever you choose, receipt every payment and keep the records; the Nigeria Tax Administration Act 2025 (s.31) requires records to be kept for at least six years. Record chair rent as its own income line in your books.
Client ownership and restraints
This is the clause that causes the most disputes, and the one where overreach backfires. Nigerian courts treat restraints of trade as unenforceable unless reasonable: the Supreme Court in Koumoulis v Leventis Motors (1973) held restraints prima facie unenforceable unless reasonable, and in Interswitch v Esumeh (2022) the National Industrial Court found a one-year worldwide bar unreasonable and favoured three months (IBA, August 2024). Those were employment cases, but the lesson carries over: a narrow clause about using each other's client lists for a short period is more likely to stand than a ban on working anywhere nearby.
Tax
The stylist runs their own business, so they handle their own tax. VAT is unlikely to apply to most individual stylists: under the Nigeria Tax Act 2025, small businesses with turnover of ₦100 million or less and fixed assets of ₦250 million or less are exempt from VAT registration and charging (Forvis Mazars, March 2026). The salon reports the rent as income.
Steps before signing
- Agree the terms in conversation, then fill the template.
- Both parties read it in full; change what does not reflect the deal.
- Collect the stylist's ID and contact details.
- Sign two copies; each party keeps one.
- Take the deposit and first rent payment, and issue receipts.
For the wider choice between models, see salary, commission or chair rental, and for the records side, salon bookkeeping.
Where Pryme fits
A Pryme Business Account can give each chair renter a dedicated virtual account number for rent, so payments match themselves, and Invoicing sends weekly or monthly rent invoices.
Questions people ask
What is chair rental in a salon?
An arrangement where a stylist pays the salon a fixed rent to use a station and keeps the income from their own clients, running their own business inside the salon.
How much is chair rental in a Nigerian salon?
It varies by location and what the salon provides. Agree the figure and whether it covers power, water and products in writing.
Can a salon stop a stylist from taking clients when they leave?
Only within reason. Nigerian courts treat restraints of trade as unenforceable unless reasonable, so a narrow, short clause about soliciting from client lists is more likely to hold than a broad ban.
Is a chair renter an employee?
Not if they actually run their own business: setting prices and hours, booking clients and buying products. If the salon controls all of that, the arrangement may look like employment.
Sources
- IBA (Dentons ACAS-Law): Employment agreement and non-compete clauses, topical issues in Nigeria (27 Aug 2024) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Forvis Mazars: 2025 NTA, VAT key business changes (16 Mar 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.