Sola Salon Studios

The Sola franchise fee is $60,000 for new franchisees, reduced to $45,000 for existing franchisees in good standing adding another location. Additionally, a $20,000 Market Introduction Fee is required for each new location opening — this is effectively a mandatory grand opening marketing spend bundled as a franchisor fee.

Total investment of $1.18M to $1.94M is dominated by leasehold improvements at $750K to $1.35M. Building out 25–50 individual salon suites requires significant construction: plumbing to each suite, HVAC zoning, electrical for salon equipment, soundproofing, individual locking doors, and finished interiors. Furniture and fixtures add $150K–$250K; technology and systems $20K–$40K; signage $15K–$35K; initial inventory and supplies $10K–$25K; training $5K–$15K; insurance and deposits $20K–$50K.

Working capital of approximately $95K–$132K covers three months of operations during the lease-up period before suite rental income stabilizes.

Ongoing fees: 5.5% royalty on gross revenue (or $500/month minimum, whichever is greater). National Marketing Fund contribution: 1.5% of gross revenue. Combined ongoing fee burden: 7% of gross revenue, below the category average.

Additional fees: $15,000–$25,000 transfer fee; $10,000 renewal fee. Technology fee is charged monthly (specific amount not captured in the extraction data).

Sola's royalty is percentage-based on actual revenue rather than Phenix's per-square-foot structure — this is more favorable for operators during lease-up, because you pay less in royalties when occupancy is low.

Sola discloses Item 19 data for 625 locations operating for the full 2024 fiscal year.

FY 2024 — All 625 included locations: - Average gross revenue: $442,438 - Median gross revenue: $420,052 - Average occupancy rate: 84.7% (mature locations)

The salon suites model generates revenue purely from suite rents paid by independent beauty professionals — stylists, colorists, estheticians, nail techs, massage therapists. Your revenue is a function of your total suite count multiplied by your weekly rental rate multiplied by your occupancy rate.

To illustrate the economics: a 40-suite location charging $350/week per suite at 84.7% occupancy would generate approximately $616K in annual gross revenue — above the $442K average, which reflects the full range of location sizes in the system. A smaller 25-suite location at the same occupancy and rate would yield approximately $385K.

At $442K average revenue with a 7% fee burden ($30.9K/year) and a lease cost that varies widely by market, operator profitability depends heavily on three factors: the landlord lease rate you negotiated for your master space, your occupancy rate, and the suite rental rates your market supports. Sola does not disclose P&L expense data, so modeling rent as a percentage of revenue is essential. Aim for rent at or below 25–30% of gross revenue ($110K–$133K at average revenue) to achieve positive cash flow.

Payback period on a $1.5M midpoint investment at $442K average revenue, assuming 15–20% net margin, runs 17–23 years — which is long. The thesis works better if you're building multiple locations or if your occupancy and suite rates exceed the system average.

Sola Salon Studios has grown steadily as the dominant player in the salon suites category: - End of 2022: 585 franchised + 61 company-owned = 646 total - End of 2023: 631 franchised + 66 company-owned = 697 total - End of 2024: 660 franchised + 69 company-owned = 729 total

Net franchised unit additions: 30 in 2022, 46 in 2023, 29 in 2024. The franchisor is actively growing its own company-owned portfolio alongside franchisee growth — 69 company stores out of 729 total (9.5%) signals genuine operational conviction in the model.

Sola is the category leader by unit count, ahead of Phenix Salon Suites, MY SALON Suite, and Suite Management Franchising. Category leadership provides brand recognition advantages when recruiting stylists — independent professionals looking for suite space are more likely to search for "Sola" than a smaller brand name.

The salon suites category benefits from the ongoing shift of beauty professionals away from commission-based employment toward independent booth/suite ownership. This structural shift has driven the category's growth over the past decade and shows no signs of reversing.

The $1.18M to $1.94M investment is substantial for a business generating $442K in average gross revenue. Your payback period depends entirely on the quality of your master lease, your occupancy trajectory, and your suite rental rates — variables that are highly location-specific and not fully capturable from FDD averages.

The master lease is your single most important negotiation. You are committing to lease payments for 10+ years on a large retail space, often 5,000–8,000 sq ft. If your occupancy underperforms — particularly in the 12–24 month lease-up period — you're absorbing the full master lease payment with limited income. Negotiate the lowest base rent possible, seek meaningful tenant improvement allowances from your landlord, and build in a lease abatement period if achievable.

Occupancy rate is the only operating metric you can actually manage. Sola's reported 84.7% average is for mature locations — new locations take 12–24 months to reach stabilized occupancy. Model your break-even occupancy carefully. A location with 40 suites at $350/week needs approximately 24 suites occupied (60%) just to cover typical rent, royalties, and overhead.

Suite rental rate competition is increasing as the salon suites category matures. More operators competing for the same pool of independent stylists in a given market can pressure rental rates and slow lease-up timelines. Research your specific metro's existing suite supply before committing.

The technology fee amount is not specified in the FDD data — confirm this figure before signing. An unspecified monthly fee that can change with notice is a financial unknown in your pro forma.