Rent a chair or own the shop?

Sources

• Occupational Outlook Handbook: Barbers, Hairstylists, and Cosmetologists (jobs in 2025, pay in May 2025) · U.S. Bureau of Labor Statistics, 2025
• License Requirements: Cosmetologist (Business and Professions Code sections 7321 and 7362.5) · California Board of Barbering and Cosmetology, 2026
• Publication 15 (2026), (Circular E), Employer's Tax Guide · Internal Revenue Service, 2026
• Self-Employment Tax (Social Security and Medicare Taxes) · Internal Revenue Service, 2026
• Nonemployer Statistics 2023, U.S. file: businesses with no paid employees by industry (NAICS 812112, Beauty Salons) · U.S. Census Bureau, 2023
• Statistics of U.S. Businesses 2022: firms, establishments, employment, annual payroll and receipts by industry (NAICS 812112, Beauty Salons, and 713940, Fitness and Recreational Sports Centers) · U.S. Census Bureau, 2022
• Regis Corporation Form 10-K for the fiscal year ended June 30, 2025 · Regis Corporation (filed with the U.S. SEC), 2025
• California Labor Code section 2778, subdivision (b)(2)(L): licensed cosmetologists, barbers, estheticians, electrologists and manicurists · California Legislative Information, 2026
• Independent contractor (self-employed) or employee? · Internal Revenue Service, 2026
• Advisory Regarding Booth Rentals (Board of Registration of Cosmetology, December 7, 2017) · Commonwealth of Massachusetts, Division of Occupational Licensure, 2017

Every number

• 48%bls.gov ·2025 · Share of hairdresser, hairstylist and cosmetologist jobs held by people who work for themselves, 2025.
• 595,000 jobsbls.gov ·2025 · Hairdresser, hairstylist and cosmetologist jobs in the US in 2025 (the handbook says about this many).
• 45%bls.gov ·2025 · Share of those jobs that are employees of salons and other personal care businesses, 2025.
• $17.21/hourbls.gov ·2025 · Median hourly pay of hairdressers, hairstylists and cosmetologists who are employees, tips included, May 2025. Booth renters aren't counted.
• 1,000 hoursca.gov ·2026 · The shortest cosmetology course California allows before the license exam.
• $300/weekexample (example number: Simplified example: a week's booth rent. No public source gives typical rents; they follow the city and the salon.) · Simplified example: a week's booth rent. No public source gives typical rents; they follow the city and the salon.
• 2 weeksexample (example number: Simplified example: the notice the sample agreement asks for before a renter leaves.) · Simplified example: the notice the sample agreement asks for before a renter leaves.
• 7.65%irs.gov ·2026 · Worked out from the IRS rates: the employer's Social Security tax plus its Medicare tax on an employee's pay, 2026.
• 15.3%irs.gov ·2026 · Self-employment tax rate: Social Security plus Medicare, for people who work for themselves.
• 838,264 beauty businessescensus.gov ·2023 · US beauty salon businesses with no paid employees, 2023: booth renters, suite renters and stylists working from home together.
• $30,374census.gov ·2023 · Worked out from the Census: what those businesses took in during 2023, divided by how many there were. The Census counts any such business taking in at least a thousand dollars a year, so the average mixes full-time stylists with side work.
• 82,964 salonscensus.gov ·2022 · US beauty salons with employees, 2022.
• $318,000census.gov ·2022 · Worked out from the Census: what US beauty salons with employees sold in 2022, divided by how many there were, rounded to the thousand. It includes chains' salons.
• 10 timescensus.gov ·2023 · Worked out and rounded: beauty businesses with no employees in 2023 divided by salons with employees in 2022 (the Census's latest count of each).
• 44.5%census.gov ·2022 · Worked out from the Census: what salons with employees paid in wages, as a share of their sales, 2022. Payroll taxes and benefits come on top.
• 4.7 peoplecensus.gov ·2022 · Worked out from the Census: employees per salon with staff, 2022.
• 83.4%census.gov ·2022 · Worked out from the Census: the share of companies owning salons with staff (companies, not salons) whose yearly sales were under the next number, 2022.
• $500,000census.gov ·2022 · The Census groups companies by their yearly sales; this is one of its lines.
• $265,000sec.gov ·2025 · Worked out and rough: Regis's system-wide sales in the year to June 2025 divided by the average of its salon counts at the start and end of the year, rounded to the thousand.
• $25–$36sec.gov ·2025 · The average price of a service at Regis's salons, fiscal year ended June 2025.
• 3,941 salonssec.gov ·2025 · Regis's salons at the end of June 2025, almost all run by franchisees.
• $75example (example number: Simplified example: what one service comes to, a cut and style or a color touch-up.) · Simplified example: what one service comes to, a cut and style or a color touch-up.
• 45%example (example number: Simplified example: the stylist's share of each service on commission. No public source gives typical splits.) · Simplified example: the stylist's share of each service on commission. No public source gives typical splits.
• 30 clients a weekexample (example number: Simplified example: the clients a busy salon books into a stylist's chair.) · Simplified example: the clients a busy salon books into a stylist's chair.
• $1,012.50example (example number: Worked out from the example numbers: the commission share of the example price, times the example clients.) · Worked out from the example numbers: the commission share of the example price, times the example clients.
• $50/weekexample (example number: Simplified example: a renter's own card fees, booking app and insurance for a week.) · Simplified example: a renter's own card fees, booking app and insurance for a week.
• $6example (example number: Simplified example: the shampoo, color and other products one client uses.) · Simplified example: the shampoo, color and other products one client uses.
• $69example (example number: Worked out from the example numbers: the example price less the example products.) · Worked out from the example numbers: the example price less the example products.
• 19.7 clients a weekexample (example number: Worked out from the example numbers: the commission week plus the rent and the renter's own costs, divided by what each client leaves.) · Worked out from the example numbers: the commission week plus the rent and the renter's own costs, divided by what each client leaves.
• $41.25example (example number: Worked out from the example numbers: the example price less the stylist's commission share.) · Worked out from the example numbers: the example price less the stylist's commission share.
• $33.75example (example number: Worked out from the example numbers: the stylist's commission share of the example price.) · Worked out from the example numbers: the stylist's commission share of the example price.
• $2.58example (example number: Worked out from the example numbers: the employer's payroll tax rate on the stylist's commission.) · Worked out from the example numbers: the employer's payroll tax rate on the stylist's commission.
• $32.67example (example number: Worked out from the example numbers: what's left of each client for the owner after the commission, products and payroll tax.) · Worked out from the example numbers: what's left of each client for the owner after the commission, products and payroll tax.
• 9.2 clients a weekexample (example number: Worked out from the example numbers: the booth rent divided by what each client on commission leaves the owner.) · Worked out from the example numbers: the booth rent divided by what each client on commission leaves the owner.
• $30example (example number: Simplified example: a walk-in haircut, inside Regis's average range.) · Simplified example: a walk-in haircut, inside Regis's average range.
• $3example (example number: Simplified example: the products one quick cut uses.) · Simplified example: the products one quick cut uses.
• 60 cuts a weekexample (example number: Simplified example: the walk-in cuts one stylist does in a busy week.) · Simplified example: the walk-in cuts one stylist does in a busy week.
• $16.50example (example number: Worked out from the example numbers: the example cut price less the stylist's commission share.) · Worked out from the example numbers: the example cut price less the stylist's commission share.
• $13.50example (example number: Worked out from the example numbers: the stylist's commission share of the example cut.) · Worked out from the example numbers: the stylist's commission share of the example cut.
• $1.03example (example number: Worked out from the example numbers: the employer's payroll tax rate on the stylist's commission.) · Worked out from the example numbers: the employer's payroll tax rate on the stylist's commission.
• $12.47example (example number: Worked out from the example numbers: what's left of each cut for the owner after the commission, products and payroll tax.) · Worked out from the example numbers: what's left of each cut for the owner after the commission, products and payroll tax.
• 24.1 cuts a weekexample (example number: Worked out from the example numbers: the booth rent divided by what each cut on commission leaves the owner.) · Worked out from the example numbers: the booth rent divided by what each cut on commission leaves the owner.