Are you considering starting up your own hair salon? Many people who have entertained this thought have also considered if purchasing a hair salon would be the best way to go. There are advantages to purchasing a hair salon as opposed to starting one from the base up. One of the main advantages is that a hair salon can grow on an already existing good reputation and established location. Doing your legal due diligence will help to find out if, in fact, the hair salon you wish to purchase has a good reputation, as well as ensure you understand all aspects of the sale.


The premises of the hair salon will most likely be occupied under a retail or commercial lease. As part of the business sale, the lease is usually assigned to the purchaser. The purchaser may also consider starting a new lease with the landlord. This is a good time to discuss the premises and the freedom to make appropriate fit-outs, if necessary. For example, you may want to add additional areas that may change the overall structure of the premises. If you would like to refurbish the salon in any way, it is a good idea to start discussions early so you know what you can and can’t do to the premises.


The equipment of the hair salon could include anything from the chairs, mirrors, hair dyers, supply trolleys or tilt basins. Make sure you know which assets will be included in the sale; after all, this is a large part of what you are buying! Checking for the equipment’s working order or ensuring any faults are accounted for in the written agreement will ensure you are getting value from your purchase.


When you think of liability, your initial thought must be to ensure you are protected from any accidents that may happen in your premises. When operating a hair salon, it is important to consider public liability and ways you can minimise your risk through insurance. However, if you are purchasing a hair salon, there are other liabilities you need to consider. For example, the previous owner may have outstanding debts to their suppliers or landlord. Make sure you know about the vendor’s legal obligations and, where possible, get a written agreement drafted outlining that you will not be responsible for the vendor’s past dealings.

Ongoing Legal

From an ongoing perspective, staying up-to-date on the relevant laws and regulations is important. If you plan to employ other people, a thorough understanding of workplace safety is important, particularly when it comes to using chemicals or electrical equipment. You will also need to ensure that you are compliant with the National Employment Standards if you plan to have employees.


Starting up as a hair salon owner is a big step! If you have plans to purchase a hair salon, make sure your agreed terms with the vendor is outlined in a written agreement. This will help to protect you and ensure a smooth transition to get you started! Our LegalVision contract lawyers specialise in the sale and purchase of businesses and can ensure that any contractual arrangements you have are as fair to you as they are to the vendor.


Kristine Biason
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