What type of business arrangement is a booth rental?

In a booth rental arrangement, the individual working is classified as an independent contractor. This means that they operate their own business within a space that is rented from a salon or another business entity. Independent contractors have the flexibility to control their own schedules, manage their own clientele, and keep a greater share of their earnings, minus the rent paid to the salon owner.

This arrangement differs fundamentally from being an employee, where one would typically receive a paycheck, have taxes withheld, and follow the company's policies and schedules. It is also distinct from a franchise, where individuals would buy into a larger brand with specific guidelines and support. Furthermore, a consultancy involves providing expert advice rather than offering direct beauty services, which characterizes booth rentals. Thus, the nature of the booth rental clearly aligns with the independent contractor model, emphasizing autonomy and self-direction.