Arizona State Board Nail Technology Practice Exam

A nail tech working under booth rental agreement __________.

1. receives a salary

2. is an employee of the salon

3. must maintain a client base

4. works on a commission basis

The correct answer is: must maintain a client base

In a booth rental agreement, a nail technician operates as an independent contractor rather than an employee of the salon. This arrangement requires the technician to maintain their own client base since they are responsible for attracting and retaining clients. By doing so, they can generate income directly from their services rather than relying on a salary or hourly wage provided by an employer. Under this agreement, the technician typically pays a fixed rental fee to the salon for the space they occupy, which emphasizes the importance of building and sustaining a clientele to ensure their business's financial viability. This independence is a core feature of booth rental, distinguishing it from traditional employment setups.