Sola Salon Studios Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$1,029,000

-

$2,101,000

LOCATIONS

624

Jennifer

Updated

April 11, 2024

Is

Sola Salon Studios

a franchise?

Yes,
Sola Salon Studios
currently
accepts
franchise
applications

Sola Salon Studios, founded in 2004, began its franchising journey in 2005. The brand has established itself as a leader in the salon studio industry, offering beauty professionals high-end, fully-equipped salon studios. These studios provide a platform for independent beauty professionals to launch and operate their own salon businesses, giving them control over their environment, schedule, and more.

The franchise is headquartered in Lakewood, Colorado, and has become a significant player in the beauty industry. Sola Salon Studios' innovative real estate rental model requires minimal staff, which drives high occupancy and retention rates, making it a lucrative option for franchisees.

Franchisees are supported by Sola Salon Studios' corporate team throughout the process of opening and operating their studios. This support includes assistance in real estate selection, studio design and construction, and marketing campaigns to attract beauty professionals to rent studios.

How many

Sola Salon Studios

franchises

are there?

In 2022, there were
624
outlets in
the United
States, of which
564
are franchises, and
60
are corporate-owned.

What are the

Sola Salon Studios

franchise

fees?

Advertising fee

1.5% - 3.5%

Initial Franchise Fee

For a single unit, the Initial Franchise Fee is set at $45,000, payable upon signing the franchise agreement. This fee represents the cost for starting the franchise and is a key initial investment. For entrepreneurs looking to open additional franchises, there's a discounted fee of $31,000 for each additional unit.

Royalty Fee

The Royalty Fee is a recurring expense calculated as 5% of the franchise's Gross Revenue per month, with a stipulated minimum of $500 per month. This fee is a cornerstone of the ongoing financial relationship between the franchisor and franchisee, contributing towards the support, resources, and brand benefits provided by the franchisor.

Advertising Fee / National Marketing Fund

Franchisees are also required to contribute 2% of their Gross Revenue per month to an Advertising Fee or National Marketing Fund. This collective fund is utilized for broad-scale marketing initiatives, which aim to benefit the entire franchise network by enhancing brand presence and driving customer engagement.

Lease or Rent Fee

The Lease or Rent Fee includes a Lease Conformance Fee of $7,500, payable upon joining the National Leasing Program and signing the Franchise Agreement. Additionally, a Lease Guarantee Fee is applicable, calculated as the greater of $1,500 or 15% of the monthly base rent. These fees are associated with securing and standardizing the franchise's physical location as per the franchisor's guidelines.

Transfer Fees

In the event of transferring the franchise to a new owner, Transfer Fees are applicable. These fees range from $0 to $5,000, plus any broker fees related to the sale, and are payable prior to the transfer's acceptance. The fees cover administrative and other costs involved in transferring the franchise rights.

Renewal Fees

To renew the franchise agreement and continue the business operation, a Renewal Fee of $2,000 is charged. This fee is due 30 days before the renewal date and covers the administrative costs associated with renewing the franchise contract.

Management Fees

Management Fees include a Project Management Fee of $3,000 plus an additional $500 per day for on-site assistance. These fees are particularly relevant during significant franchise development projects, covering the costs of expert management and operational support.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Sola Salon Studios

franchise?

It costs between
$1,029,000
and
$2,101,000
to start a
Sola Salon Studios
franchise.
Type of Expenditure Amount
Initial Franchise Fee $55,000
Travel and Living Expenses $2,500 to $4,000
Site Selection Assistance $0 to $3,500
Rent Manager Property Management Software (6 months) $744 to $1,044
Architectural Fees $10,000 to $30,000
Rent or Real Estate $21,000 to $199,000
Design Services $3,200 to $5,000
Improvements/Conversions $705,600 to $1,305,000
Furniture & Fixtures $147,000 to $315,000
Signage $10,000 to $20,000
Utilities $1,311 to $16,645
Operating Supplies $1,000 to $10,000
Advertising/Marketing $10,900 to $20,000
Insurance (Yearly basis) $6,500 to $10,000
Computer Equipment and Software $1,300 to $2,300
Repairs and Maintenance $2,859 to $20,673
Labor $9,000 to $33,369
Additional Funds for Initial three (3) Months $20,000 to $50,000
Total $1,028,914 to $2,100,531

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Sola Salon Studios

provide

training

to its

franchisees?

Yes,
Sola Salon Studios
provides
training

The Sola Salon franchise provides various types of training for its franchisees, which include:

Initial Training

  • The franchisor provides initial training within 60 days of signing the agreement.
  • Training is conducted at the corporate headquarters or another designated franchise location.
  • Both the franchisee and one designated manager or employee must attend and satisfactorily complete the program.
  • The program covers the system, techniques, procedures, methods of operation, ordering, accounting, support procedures, quality standards, and practical experience in franchise operation.
  • Duration: approximately 15 hours over two days.
  • The franchisee is responsible for personal travel, accommodation, and other costs while attending training. Additional charges apply for extra attendees.

Ongoing and Advanced Training

  • The franchisor may hold annual conferences covering ongoing changes in the industry, sales techniques, personnel training, bookkeeping, accounting, inventory control, performance standards, and advertising programs.
  • The franchisee is required to attend these conferences, and if a fee is charged, the franchisee must pay it regardless of attendance.
  • Continuing Advanced Training may be provided through various methods like telephone, video conferencing, email, or webinars.
  • No fee is charged for Continuing Advanced training.

Does

Sola Salon Studios

provides

territory

protection?

The Sola Salon franchise offers territory protection to its franchisees. The franchise agreement stipulates that during its term, neither the franchisor nor its affiliates will operate or grant franchises using the same marks within the franchisee's protected territory. However, the franchisor retains the right to operate outside the protected territory.

Can a

Sola Salon Studios

franchise

be run as

a passive

investment?

The Sola Salon Studios franchisor does not explicitly support passive investment. The franchise agreement emphasizes active management and involvement, requiring the franchisee or a qualified manager to supervise and participate in day-to-day operations.

Transfers are restricted to approved affiliates with specific ownership and management conditions, suggesting a focus on active, hands-on franchise operation rather than passive investment.

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