Sola Salon Studios Franchise FDD, Profits, Costs & Fees (2024)

Sola Salon Studios was founded in 2004 by Stratton Smith and Matt Briger to empower beauty professionals to own their businesses.

Headquartered in Lakewood, Colorado, Sola offers high-end, move-in-ready salon suites for independent beauty professionals. The franchise began expanding in 2005 and now boasts over 700 locations across the U.S.

Sola Salon sets itself apart by allowing beauty professionals to customize private studios, set their own prices, and manage schedules. This model provides a personalized space and brand identity, while Sola supports with marketing, technology, and education.

Joining Sola means joining a community of over 20,000 beauty professionals. The franchise provides top-tier amenities, hospitality, and a supportive environment to help salon owners thrive both personally and professionally.

Initial Investment

How much does it cost to start a Sola Salon Studios franchise? It costs on average between $1,029,000 – $2,101,000 to start a Sola Salon Studios franchised center.

This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of salon you choose, the location, and whether the franchisee chooses to lease or purchase the property.

Type of ExpenditureLow AmountHigh Amount
Initial Franchise Fee$55,000$55,000
Travel and Living Expenses$2,500$4,000
Rent Manager Property
Management Software
$744$1,044
Site Selection Assistance$0$3,500
Architectural Fees$10,000$30,000
Rent or Real Estate$21,000$199,000
Design Services$3,200$5,000
Improvements/Conversions$705,600$1,305,000
Furniture & Fixtures$147,000$315,000
Signage$10,000$20,000
Utilities$1,311$16,645
Operating Supplies$1,000$10,000
Advertising/Marketing$10,900$20,673
Insurance$6,500$10,000
Computer Equipment and
Software
$1,300$2,300
Repairs and Maintenance$2,859$20,673
Labor$9,000$33,369
Additional Funds for Initial 3 Months$20,000$50,000
TOTALS$1,028,914$2,100,531

Average Revenue (AUV)

How much revenue can you make with a Sola Salon Studios franchise? A Sola Salon Studios franchised center makes on average $428,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Sola Salon Studios fdd item 19 extract

This compares to $443,000 yearly revenue for similar full-service salon franchises. Below are some of Sola Salon Studios competitors as a comparison:

Sola Salon Studios competitors

Sola Salon Studios Franchise Disclosure Document

Recent Legal Disputes and Litigation

Sola Salon Studios, which offers beauty professionals the chance to own their business through private suites, has recently faced legal disputes from franchisees. These disputes often involve contractual disagreements, franchisee rights, and operational challenges.

In late 2022, franchisees filed a lawsuit claiming Sola failed to provide promised marketing and training support. This alleged breach of contract led to financial losses for the plaintiffs. Franchisees also raised concerns about hidden fees, stating these costs were not disclosed when they signed their agreements, resulting in legal action.

Territorial protection has also been a point of contention. Some franchisees claim Sola violated their exclusive territory rights by opening competing locations nearby, which diluted their customer base. This issue has further escalated tensions between franchisees and the franchisor.

These lawsuits reveal growing friction within the franchise, emphasizing the need for clear communication and transparency between Sola Salon and its franchisees. The outcomes of these legal actions are still pending.

Frequently Asked Questions

How many Sola Salon Studios locations are there?

As of the latest, Sola Salon Studios has a total of 728 locations globally. Of these, 564 are franchised units, while 59 locations are company-owned, with one additional company-owned location in development.

The company has been steadily acquiring franchisee-owned units, notably purchasing 20 franchise locations in Virginia and Maryland to expand its corporate ownership.

What is the total investment required to open a Sola Salon Studios franchise?

The total investment required to open a Sola Salon Studios franchise ranges from $1,029,000 to $2,101,000.

What are the ongoing fees for a Sola Salon Studios franchise?

The ongoing fees for a Sola Salon franchise include a royalty fee of 5.5% of gross revenue and a marketing fee, also known as the National Marketing Fund Contribution, of 1.5-3.5% of gross revenue. These fees ensure that franchisees contribute to the overall brand’s marketing efforts and receive operational support.

What are the financial requirements to become a Sola Salon Studios franchisee?

To become a Sola Salon Studios franchisee, the financial requirements include a minimum net worth of $1.5 million and liquid assets of at least $500,000. These requirements ensure that potential franchisees have the financial capacity to cover the initial investment and ongoing operational costs involved in opening and running a Sola Salon franchise.

How much can a Sola Salon Studios franchise owner expect to earn?

The average gross sales for a Sola Salon Studios franchise are approximately $0.43 million per location. Assuming a 15% operating profit margin, $0.43 million yearly revenue can result in $145,500 EBITDA annually.

Who owns Sola Salon Studios?

Sola Salon Studios is owned by Radiance Holdings, a beauty and wellness company. Radiance Holdings acquired Sola Salon and oversees its operations, which includes managing its growth and expansion in the salon studio sector. The company also owns other brands in the beauty industry, such as Woodhouse Spas, further strengthening its portfolio in the beauty and wellness space.

Disclaimer

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