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Commercial

Buying a Hair or Beauty Salon in Ontario

3 min readPublished

By Summitly Editorial

Quick answer

Before buying a hair, nail or beauty salon in Ontario, find out which stylists and clients will stay, since they are most of the value, confirm the salon meets public health rules for personal service settings, read the lease and any booth-rental agreements, and verify revenue from the booking system and tax filings.

Stylists, clients and booth rental

A salon's revenue usually follows its stylists. Find out who is an employee, who rents a chair or booth, and who brings their own clients. Ask whether key people have agreed to stay and review the booking system for repeat-client history.

Public health rules for personal service settings

Hair, nail, esthetics and similar businesses are personal service settings under Ontario's regulation of the same name, inspected by local public health units. Ask for the inspection history and check infection-prevention practices, especially for services that can break the skin.

The salon lease and fit-out

Check the lease's term, renewal, permitted use, landlord's consent to assignment and who owns the plumbing, chairs and fixtures. Salons use a lot of water and electricity, so confirm what the building supplies and what you pay for.

Financing salons in Ontario

Buying a business usually means buying its assets and goodwill (an asset purchase) or buying the company that owns them (a share purchase). The structure changes what liabilities you inherit, how the price is taxed and what a lender will finance, so decide it with your lawyer and accountant before the offer.

Lenders will want the business's financial statements and tax returns, the lease or title, and your own experience in the industry. BDC lends to small and medium-sized Canadian businesses, and many banks lend under the federal Canada Small Business Financing Program for equipment, leasehold improvements and real property. A vendor take-back, where the seller finances part of the price, is also common in business sales. No lender approval, rate or term is guaranteed: talk to a commercial lender or mortgage professional before you make an offer.

Where to find salons for sale

Summitly's category pages list the salons on the MLS® system right now, city by city, with the live count and the newest listings. A page with too few live listings to be useful is kept out of search results until inventory returns.

How Coldwell Banker Summit Realty helps with salons

Coldwell Banker Summit Realty, Brokerage is a RECO-registered Ontario brokerage with access to the Coldwell Banker Commercial program. A licensed REALTOR® can shortlist listings, request the financial package and documents the seller's side will release, structure an offer with the conditions this guide describes, and coordinate with your lawyer, accountant and lender.

This guide is general information for buyers in Ontario, not legal, tax, lending or environmental advice. Rules change and every deal is different: confirm each point with your lawyer, accountant, lender and the regulator named before you firm up an offer.

Key takeaways: buying a salon in Ontario

  1. Most of a salon's value is its stylists and their clients
  2. Personal service settings are inspected by local public health
  3. Read booth-rental agreements and the lease before you firm up
  4. Verify revenue from the booking system and HST filings

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Buying a salon in Ontario: frequently asked questions

Do salons need a licence in Ontario?

Salons are personal service settings inspected by local public health units, and many municipalities also require a business licence. Check with the municipality and the health unit for the location.

What is booth rental and why does it matter?

In booth or chair rental, a stylist pays the salon rent and keeps their own clients and income. It changes how much revenue the business really owns, so review every agreement.

How do I know the clients will stay after I buy a salon?

Nothing guarantees it. Review repeat bookings, talk to key stylists before you firm up where the seller allows, and consider a transition period with the owner.

Is this legal advice?

No. It is general information. Confirm each point with your lawyer, accountant, lender and public health unit.

Sources

  1. O. Reg. 136/18: Personal Service Settings (Ontario e-Laws)
  2. Commercial Tenancies Act (Ontario e-Laws)
  3. BDC — Business Development Bank of Canada
  4. Canada Small Business Financing Program (Innovation, Science and Economic Development Canada)

Published by Summitly, the website of Coldwell Banker Summit Realty, Brokerage, registered with the Real Estate Council of Ontario (RECO); an independently owned and operated Coldwell Banker franchise. Broker of Record: Waqar Afzal. Questions or corrections: our contact form. How we write and check these pages: editorial policy.

Cite this guide

Summitly Editorial. (2026, September 28). Buying a Hair or Beauty Salon in Ontario. Summitly (Coldwell Banker Summit Realty, Brokerage). https://www.summitly.ca/guides/buying-a-salon-ontario

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