The minimum notice between a booking and the appointment.
Lead time is how much warning you need. Set it to two hours and nothing inside the next two hours can be booked online, however empty the calendar looks.
Set it to Immediately and a client can book the next available start time, which may be minutes away. That suits walk-in trade and suits nobody who has to travel to the appointment.
Lead time only applies to clients booking themselves. You can still add a booking from the calendar at any time, including one starting in five minutes.
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