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When You Rent A Spa Room, What Do You Actually Own?

By May 31, 2023Salon Spa Blog
rent a spa room

There is still confusion surround what “rent a spa room” means with regards to ownership, so hopefully this article will clarify matters. We are Salon & Spa Galleria, rocking the Fort Worth Metro area with twenty-two salon suite rental locations. Call us at 817-917-1416 for more information and to arrange for a tour of our luxury salon suites.

Now, hopefully, we can shed some light on this spa room rental confusion.

Rent a spa room: three options.

There are basically three options when you rent a spa room or rent a salon suite.

The first involves renting space in a spa owned by someone else. Usually, in this case, you are paid a commission for the sales you bring to the owner.  You do not own a spa but rather work in a spa owned by someone else.

The second option involves a franchise situation. In this case, you own a spa business, but you keep the franchise name and you follow the business model of the parent company. You pay a franchise fee to be a part of the franchise, but you do, in fact, own a business and keep 100% of the profits.

Your third option can best be seen at places like our own Salon & Spa Galleria. There you rent a spa room, and from that room you operate an independent business. You are not associated, in any way, with the rental company. All they do is provide you with a retail location; other than that, you are just like any other spa owner, or beauty shop owner.

What do you own when you rent a spa room?

When you rent a spa room, you in no way own property.  You own a business, and you own the materials you use to conduct business, and you own the products you sell (the inventory), but you do not own a physical location of that business.

In truth, that is the case with the majority of small businesses in the United States. Very few small business owners have the money to purchase commercial property. Almost all of the rent an existing retail location.  They are business owners in every sense of the word, but they are not property owners.

The alternative is always available.

The option to purchase a retail property is always available to you and, without a doubt, there are added tax benefits when you do so, but there are also negatives to consider.  By all means, if you have the funds, or you have access to a low-rate bank loan, consider purchasing a retail location. However, most people reading this article do not have access to that kind of cash.

Which option is best for you? That decision is for you, and your tax accountant, to discuss.

A final word about Salon & Spa Galleria.

Salon & Spa Galleria leads the way in the Greater Fort Worth area with twenty-two locations. Call us and ask for a tour. Talk to our leasing agent. Discuss matters with some of our current rental clients.  Gather up all the information you need to feel comfortable.  We want you comfortable with your decision to become a team member of Salon & Spa Galleria.