Sola Salon Studios Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,181,960 - $1,939,349
Franchise Fee
$45,000
Total US Locations
729
Business Summary
Sola Salon Studios offers franchised businesses where franchisees acquire or lease existing building space to create and license individual, turn-key salon studios to independent salon, beauty, and wellness professionals such as stylists, nail technicians, estheticians, and massage therapists. Franchisees are responsible for general salon management, facility maintenance, providing amenities like wireless internet, and offering some marketing and branding support, including a website page for each salon professional. The independent salon professionals who lease the studios then operate their own businesses and manage their own appointments.
Corporate History
Sola Franchise, LLC was formed in Colorado on January 2, 2018. It is the successor to Sola Franchise Corporation (SFC), which was incorporated on March 31, 2005, and offered Sola Franchises from March 2005 until December 31, 2017. Sola Franchise, LLC acquired SFC's franchise assets and assumed its franchise agreements in January 2018. The underlying brand, Sola Salon Studios, is operated by an affiliate, Sola Salon Studios LLC (SSS LLC), which was formed on August 25, 2003. Sola Franchise, LLC has operated the Sola Salons on behalf of SSS LLC since 2004. The brand is ultimately majority-owned by TSG9 Glow Group Holdings 2 L.P.
Financial Overview
Investment Range
$1,181,960 - $1,939,349
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$60,000
Royalty %
5.5%
Marketing %
1.5%
Equipment Costs (Low)
$1,009,459
Equipment Costs (High)
$1,551,218
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sola Franchise, LLC's financial statements were restated for 2022 and 2023 to correct an error related to the recorded value of its equity investment, which the auditors noted was not a modification to their opinion. The company is part of an affiliated group with common ownership, and its operating results could differ if it operated independently. Sola Franchise, LLC is jointly and severally liable for significant debt obligations of its parent company, which included $170 million in 2023 and was refinanced to $183 million plus a $20 million revolving credit facility in 2024. The company also has a large and growing amount of affiliate receivables, totaling $38,934,900 in 2024, with undefined payment terms. In 2023, management deemed $3,886,867 of these related-party receivables uncollectible and reclassified it as a noncash distribution.
Financing Details
Sola Salon Studios does not offer any direct or indirect financing to franchisees. Furthermore, it does not guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own financing through third parties.
Performance Metrics
Total US Locations
729
Franchised Units
660
Corporate Units
69
Avg Square Footage
6,200
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sola Salon Studios has no litigation to report, as Item 3 states that no litigation information is required to be disclosed.
Bankruptcy History
Sola Salon Studios has no bankruptcy history to report, as Item 4 states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Sola Salon Studios franchisees must sign a new franchise agreement and provide timely notice of their intent to renew. They must not be in default or have been in material breach previously, and all payments to Sola Salon Studios and its affiliates must be current. Franchisees may also be required to sign a general release of claims and complete any renovations, upgrades, or modernizations to their location as specified in the Manual or as reasonably required by Sola Salon Studios, potentially utilizing designated or approved design service suppliers.
Training & Support Program
Franchisor Assistance
Sola Salon Studios provides franchisees with initial assistance including designating a Protected Territory, granting access to its confidential operating Manual, and offering advice on site selection and lease negotiation. Franchisees receive information on pre-approved vendors for equipment, design, and supplies. Initial training is provided for the franchisee and a designated manager, delivered virtually or at the corporate headquarters in Lakewood, Colorado, covering various aspects of business operations and development. Ongoing support includes telephone advisory services during business hours, inclusion of the franchisee's business on the Sola Salon Studios website, and provision of marketing and promotional materials. Sola Salon Studios may host mandatory periodic regional or national conferences, for which a fee may apply, and offer continuing advanced training (no fee) through various methods like video and webinars. Additional on-site assistance can be requested, subject to a daily fee plus travel and living expenses.
Initial Training Hours
18
Training Location
Lakewood, Colorado; or virtual
Ongoing Support
Sola Salon Studios provides ongoing advisory services by telephone during normal business hours. Franchisees receive information about their location on the Sola Salon Studios website. Sola Salon Studios also provides marketing and promotional materials. The franchisor may host periodic regional or national conferences, which are mandatory for franchisees and may incur a fee, plus franchisees cover travel and living expenses. Additionally, Sola Salon Studios may offer no-fee continuing advanced training via telephone, video, email, or webinars. Extra on-site assistance is available for a daily fee plus expenses.
Franchise Requirements
Ideal Candidate Profile
Sola Salons seeks qualified applicants, including those interested in multi-unit development. Ideal candidates demonstrate a strong commitment to operating the Sola Franchise consistent with the Sola System standards. They must have experience, a strong personal and financial reputation, stability, and the willingness and ability to dedicate their full time and best efforts to the day-to-day operation of the franchised business, either personally or through a fully trained and qualified manager. Neither the franchisee nor their manager should have an interest or business relationship with any competitors. Franchisees must also provide a business plan acceptable to Sola Salons and ensure no involvement in a competitive business. Additionally, any proposed transferee must not have been convicted of a felony or a crime involving moral turpitude, or any other offense likely to negatively impact the Sola Salons system. For entity franchisees, individuals owning 20% or more must personally guarantee obligations, and spouses of franchisees must also sign a guarantee, making them liable for financial obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
full-time
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Sola Salon Studios grants franchisees a Protected Territory defined as either a one-half (0.5) mile, one (1) mile, or two (2) mile radius around the franchisee's business location. This radius is determined by Sola Salon Studios based on factors like population density, number of households and businesses in the area, and other geographic features.
Staffing Notes
Sola Salon Studios requires the franchisee or a fully trained and qualified manager, approved by Sola Salon Studios, to directly supervise and participate in the actual day-to-day operation of the Sola Franchise on a full-time basis. If the franchisee is an entity, its officers, directors, shareholders, partners, and members owning 20% or more must also sign a personal guaranty. Employee wages and prevailing rates will affect labor costs, but Sola Salon Studios does not specify typical staff counts or other detailed staffing structures beyond the managerial role.