In Short
- Ensure your beauty salon complies with local regulations by securing the required permits and licences, which vary by state.
- Implement comprehensive client agreements detailing service terms, liability waivers, cancellation policies, and consent for using client images.
- Maintain high hygiene standards, including clean premises and sterilised equipment, to meet public health regulations.
Tips for Businesses
Before opening your beauty salon, research and secure all necessary permits and licences specific to your state. Develop clear client agreements to outline service expectations and legal protections. Prioritise hygiene by maintaining a clean environment and using sterilised equipment to comply with health regulations and ensure client safety.
Opening a beauty salon can be a great way to turn your skills and experience in the beauty industry into a business. When opening your own beauty salon business, there are a few legal considerations you should keep in mind. This article will take you through the legal essentials of opening a beauty salon, including the certifications and training you and your staff will need, how to register your business, and factors to remember when finding the right premises.
Certifications and Training
Before opening a beauty salon, you should ensure that you have the proper education and training. A diploma in Beauty Therapy can be the best way to jump-start a successful career in beauty business ownership, as you will learn critical industry-specific skills and skills related to managing and running a business on your own.
Beyond your own training, you should ensure that your staff are certified to practice whatever beauty treatments your salon offers. For example, suppose you hope to offer your clients botox treatments. In that case, you must ensure that a valid accreditation body accredits your employees as cosmetic injectors and that a registered medical practitioner supervises them. If you wish to offer laser hair removal services, you should ensure your employees have completed a laser and IPL hair removal course. What certifications you will need will vary depending on the services you seek to offer.
Registering the Business
To register your business, you must apply to the Australian Business Register to obtain an Australian Business Number (ABN). Having an ABN means registering as a business with the Australian Government and becoming entitled to tax advantages reserved for businesses. You will also receive a Tax File Number for your business. To be eligible for an ABN, you must carry on a business, not working for someone else.
Having an ABN means you will also be subject to specific legal obligations, including registering for GST, lodging activity statements with the Australian Business Register, and paying superannuation to eligible employees. You can apply for an ABN here.
Continue reading this article below the formFinding the Right Premises
The key to any successful service-providing business is location. You will want to ensure that you situate your business where plenty of prospective customers can walk past and where customers who have found you online or heard about your amazing services from friends can find you.
Fixed-Term Leases
A fixed-term lease is a lease that has a term that ends on a specified date. For example, a lease may specify that your landlord agrees to lease the premises out to you for a year, and you agree to pay rent to your landlord until that year ends. You can renew a fixed-term lease after the term has elapsed, provided you and your landlord agree to it.
The benefit of a fixed-term lease is that it provides certainty as to how long you will be able to occupy the premises. It can be frustrating when you spend time and money setting up equipment and decor in a location where you have built a loyal clientele and a good reputation, only for your landlord to end your lease and force you to find new premises. On the other hand, you should ensure that a location is right for your business before entering into a fixed-term lease. If you enter into a year-long lease but realise after a few months that the location is not suitable, you must still pay rent until the lease ends.
This guide will help you to understand your options when you purchase a business with leased premises.
Month-to-Month Leases
A month-to-month lease is a lease that renews automatically every month. The specific term can differ from lease to lease. You or your landlord can continue a month-to-month lease without negotiating any renewal until one of you decides to end the agreement.
A month-to-month lease can be useful if you are unsure about new premises or want the flexibility to move or end your business anytime. However, your landlord has the freedom to end your lease each month, which could force you to move your business from a great location at short notice.
Zoning
Another extremely important thing to remember is to check whether the premises you are considering are zoned to allow a beauty salon to operate. The lease will usually state whether the premises are zoned for your type of business and may also specify the opening hours within which you are permitted to manage your business. Make sure that you are happy with the opening hours available, as you will not be able to negotiate to change these hours if you decide later that you want to open your business for longer.
Another thing to remember is whether or not your landlord has entered into any agreements with other tenants to give them the exclusive right to operate a certain kind of business at your location. Even if your landlord has not made any such agreements relating to beauty salons, you might decide later to pivot your business to dermatology or some other more niche form of beauty salon. If you foresee this happening, discuss with your landlord whether they have entered into exclusivity agreements.
Key Takeaways
Before opening your beauty salon, you should keep in mind a few legal considerations:
- you should ensure that you and your staff have the appropriate licences and certifications to provide the services you plan on offering;
- you will need to register for an ABN; and
- you should ensure that you have a lease with a term appropriate for your business. This lease should allow you to open the type of business you want and operate within the hours you want.
If you need help managing legal considerations when opening a beauty salon, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
You and your staff must have the right certifications to offer beauty treatments legally. For example, cosmetic injectors need accreditation, and laser hair removal specialists require relevant training. Certification requirements depend on the services you provide, so check industry regulations before launching your salon.
You must apply for an Australian Business Number (ABN) through the Australian Business Register. An ABN allows you to operate legally, access tax benefits, and meet obligations like GST registration and employee superannuation payments. Ensure you meet the eligibility criteria before applying.
We appreciate your feedback – your submission has been successfully received.
