Sola Salon Studios franchise unit economics
Sola Salon Studios franchisees fit out a retail space into private salon studios and license them to independent beauty professionals month to month. Filed for 2026, occupancy cost is the operating number: 653 locations open 13 months or more ran 89.7% median occupancy cost in December 2025, and a new location climbs from 47.9% average occupancy cost in month one to 78.8% by month twelve. 677 franchised locations were open at year end.
- Primary source
- Sola Franchise, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 653 of 677 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
Building costs runs month by month across the whole first year. A new location averages 47.9% in month one and 78.8% by month twelve, while the median runs 43.5% to 86.6%. Mature locations sit at 89.7%. On a build costing up to $1.75 million, that curve is the cash flow plan.
- Average occupancy cost runs 47.9% in month one and 78.8% by month twelve. The median climbs further, from 43.5% to 86.6%, 43.1 points across the first year.
- The median overtakes the average at month six and finishes 7.8 points above it. 86.6% against 78.8%, so a minority of weak locations has the mean down.
- Mature locations run 89.7% median occupancy cost, with 107 of 653 completely full and one at 26.3%. The average across the same 653 is 85.1%.
- A build costs $950,214 to $1,748,296, and improvements plus fixtures are 82% of it at both ends. $777,633 to $1,441,784 before anything else.
- Franchise fees take 7.0% of revenue plus $2,220 to $3,000 of technology fee. A 5.5% royalty against a $500 monthly minimum and a 1.5% marketing fund contribution.
How much does a Sola Salon Studios franchise make?
The 2026 FDD for Sola Salon Studios does not publish unit revenue in a form that answers this directly. What it does publish is set out below, starting with Franchised locations (end 2025): 677; Median occupancy cost at maturity: 89.7%; Average occupancy cost, month 12: 78.8%; Total investment: $950,214–$1,748,296.
Top performers
What separates the top Sola Salon Studios performers
Sola Salon Studios publishes no revenue figures, so neither the average nor the spread between locations is disclosed.
Decided before you open
- Capacity, fixed at build.capacity is 73 studio floor multiplied by hours multiplied by how full they run. What you can sell is set by the build, and the build does not change after opening.
- Territory, and how much of it is real.This model sells from a territory rather than a building. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
- What you spend to open.Opening costs $950,214 to $1,748,296, a 1.8× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- Suites rented, the operating driver.This model bills on suites rented. The suites are built once and then let, so the business is how many are occupied and how long each tenant stays. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Membership and rebooking.A recurring plan turns a high-fixed-cost business from an appointment book into a subscription, which smooths the utilisation that drives the wage line. Rebooking before the customer leaves is what builds it, not marketing spend afterwards.
- Service and retail mix.Attachment rate on retail, and the share of customers on the higher service tiers, lift what each hour earns without adding an hour or a room. It is the only lever that raises the ceiling without spending capital.
- Fees, and where the minimum bites.Fees run about 7.0% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
Context you underwrite around
- The reporting screen.653 of 677 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations, no median, no performance bands, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
- What the rest of the category shows.Across the 38 Health & Wellness brands in this library that do publish bands, the top group sells 3.1× the bottom at the typical brand, and a median 43% of locations reach their own average *. Assume a spread of that order here until the franchisor shows you otherwise.
The first year
Building costs, month by month, across the first twelve months.
| Month | Average | Median | Lowest in range | Median less average | Locations beating the average |
|---|---|---|---|---|---|
| 1 | 47.9% | 43.5% | 2.5% | −4.4 | 187 (44%) |
| 2 | 54.7% | 50.0% | 3.8% | −4.7 | 197 (46%) |
| 3 | 59.1% | 57.9% | 5.0% | −1.2 | 210 (49%) |
| 4 | 62.6% | 61.2% | 3.8% | −1.4 | 211 (49%) |
| 5 | 65.9% | 65.5% | 6.9% | −0.4 | 210 (49%) |
| 6 | 68.0% | 69.0% | 3.1% | +1.0 | 219 (51%) |
| 7 | 70.7% | 73.6% | 7.7% | +2.9 | 234 (55%) |
| 8 | 72.8% | 77.0% | 10.3% | +4.2 | 228 (53%) |
| 9 | 74.9% | 80.5% | 12.1% | +5.6 | 241 (56%) |
| 10 | 76.5% | 83.3% | 12.1% | +6.8 | 242 (57%) |
| 11 | 77.7% | 85.2% | 11.5% | +7.5 | 253 (59%) |
| 12 | 78.8% | 86.6% | 11.5% | +7.8 | 263 (61%) |
The average, median, lowest-in-range and met-or-exceeded rows are as the brand reported it; the median-less-average column is marked *.
Half the first year's climb happens in the first five months. 47.9% to 65.9% on the average, then 65.9% to 78.8% across the next seven. The steep part is front-loaded, which is what a pre-opening leasing effort buys, and the curve is still rising at month twelve.
At month twelve the median location is 7.8 points ahead of the average one. 86.6% against 78.8%, and the two crossed over at month six. When the median beats the mean by that much, a small group of badly lagging locations is doing the pulling. The lowest-in-range row confirms it. A location at month twelve running 11.5% occupancy cost.
Some location hits 100% occupancy cost in every single month of the first year, including month one. Against a low of 2.5% in the same month. So the distribution at any point in the build-up spans effectively the entire range. The average is a poor guide to what your own building will do.
61% of locations beat the average by month twelve, up from 44% in month one. Exactly 50% beat the median in every month, as arithmetic requires. That rising share against the mean is the same pattern from the other side: the tail lengthens as the year goes on.
Fees and what it costs to open
The fee schedule.
| Fee | Amount | Notes |
|---|---|---|
| Royalty | 5.5% of sales, minimum $500 a month | Due on the 10th; franchisees who signed before 2020 may pay a lower rate |
| National marketing fund | 1.5% of sales, up to 2% | Combined with any multi-area marketing program, capped at 2% |
| Technology fee | $185 to $250 a month | Due on the 25th, adjustable on notice |
| Property management software | $447 to $546 a year | Payable to the franchisor |
| Computer upgrades and maintenance | Usually up to $1,000 a year | When the franchisor requires it |
| Renewal | $7,500 | Initial term 10 years, renewal term 10 years |
| Transfer | $0 to $12,500 plus broker fees | Plus a lead fee of 10% of the sale price, capped at $50,000, where the buyer came from the franchisor |
As the brand reported it.
7.0% of sales is the whole ongoing brand cost. 5.5% of royalty and 1.5% to the marketing fund, with the technology fee at $2,220 to $3,000 a year on top. That is a light load by franchising standards, and it sits against a build costing up to $1.75 million. The money in this model goes to the landlord and the contractor.
Agreements signed before 2020 may have a lower royalty. So the system contains two fee generations, and anyone benchmarking against a long-standing franchisee’s numbers is comparing against a different rate card.
Selling to a buyer the franchisor introduced costs 10% of the sale price, capped at $50,000. On top of a transfer fee of up to $12,500 and any broker fees. Worth knowing a decade before you need it, because it prices one exit route against another.
What it costs to open.
| Line | Low | High |
|---|---|---|
| Improvements and conversions, after tenant improvement allowance | $566,633 | $1,146,784 |
| Furniture and fixtures | $211,000 | $295,000 |
| Initial franchise fee | $60,000 | $60,000 |
| Additional funds, three months | $30,000 | $70,000 |
| Market introduction fee | $20,000 | $20,000 |
| Signage | $15,000 | $25,000 |
| Rent or real estate | $12,084 | $51,666 |
| Architectural fees | $12,500 | $35,000 |
| Business licenses, permits and site evaluation | $15,500 | $28,000 |
| Insurance, computers, software, travel and utility deposits | $7,497 | $16,846 |
| Total | $950,214 | $1,748,296 |
As the brand reported it, except two grouped lines. Are marked *. Business licenses and fees with permits and site evaluation services. And insurance with computer equipment and software, the property management software, travel and living expenses for training, and utility deposits.
Improvements and fixtures are 82% of the build at both ends of the range. $777,633 of the $950,214 low and $1,441,784 of the $1,748,296 high. You are constructing private rooms inside a shell, and the franchise fee plus the market introduction fee ($80,000) is 8% of the low total. This is a construction project with a brand attached.
Three months of additional funds is $30,000 to $70,000. Against a first-year curve that reaches only 47.9% average occupancy cost in month one and 59.1% by month three. The reserve covers the steepest part of the build-up, and the curve keeps climbing for another nine months after it runs out.
The improvements line swings $580,151 and is stated after the landlord's contribution. $566,633 to $1,146,784, net of tenant improvement allowance, so the number you negotiate with the landlord moves the largest line in the table directly. A $200,000 allowance is a third of the low estimate.
What territory you get.
You are offered one of three protected radii: half a mile, one mile or two miles. The franchisor chooses which at its sole determination when the premises address is set, weighing population density and household counts among other factors. The grant is explicitly stated as being other than an exclusive territory. Competition reserved from other franchisees, franchisor and affiliate outlets and other channels and brands the group controls.
A multi-unit development agreement assigns a development area instead. Ranging from part of a city to a multi-county or single-state area, sized against the number of locations you commit to and the demographics of the area. A prescribed development schedule and a separate franchise agreement for each location.
Mature occupancy cost
Where occupancy cost settles.
| Measure | Building costs | Locations |
|---|---|---|
| Median | 89.7% | 328 (50%) at or above |
| Average | 85.1% | 412 (63%) at or above |
| Highest in range | 100.0% | 107 (16%) |
| Lowest in range | 26.3% | 1 (0.2%) |
As the brand reported it, measured for the single month of December 2025.
16% of mature locations are completely full. 107 of 653 at 100% occupancy cost in December, against a median of 89.7% and one location at 26.3%. A sixth of this system has run out of studios to license, which makes the suite count chosen at build time a ceiling.
The median sits 4.6 points above the average at maturity, the same shape as at month twelve. 89.7% against 85.1%, and 63% of locations beat the average while 50% beat the median. The weak tail is a permanent feature of this system. It just gets smaller, from 11.5% at month twelve to 26.3% at maturity.
A mature location gains 6.3 points of average occupancy cost over a twelve-month-old one. 85.1% against 78.8%, and on the median just 3.1 points, 89.7% against 86.6%. So the build-up is substantially complete at the end of year one: most of what a location will ever fill, it has filled.
Four locations closed during 2025 out of 677. A closure rate of 0.6%, and every one of them had been open more than a year. On a model where the tenant base pays monthly and the landlord is paid monthly, a low-selling location can hold on for a long time. Is why the 26.3% figure exists at all.
The network of locations
The network of locations.
| Year | Franchised start | Franchised end | Net change | Company end | Total end |
|---|---|---|---|---|---|
| 2023 | 585 | 631 | +46 | 66 | 697 |
| 2024 | 631 | 660 | +29 | 69 | 729 |
| 2025 | 660 | 677 | +17 | 67 | 744 |
As the brand reported it.
744 locations, and net additions have halved twice. +46, then +29, then +17 on the franchised side. This is the largest salon-suite network in the category by some distance. Its growth rate is settling. Matters for an existing owner mainly because the protected radius on offer runs from half a mile upward in markets that already have Sola locations in them.
Four closures across 677 locations in 2025. 0.6%, and every closure was a location open more than a year. Against a system where one location runs 26.3% occupancy cost and 16% run at 100%, that shows a weak building persists. The operator keeps paying the lease while the studios sit empty.
The company estate fell by two in 2025 after rising for two years. 61 to 66 to 69 to 67. Those 67 locations contribute to the marketing fund on exactly the same terms as franchised ones.
Questions we get asked
Questions owners ask.
What occupancy cost should a location run?
Across 653 franchised locations open 13 months or more, median occupancy cost in December 2025 was 89.7% and the average 85.1%, ranging from 26.3% to 100%. 328 locations met or beat the median, 412 met or beat the average, and 107 were completely full. In the first year the average runs 47.9%, 54.7%, 59.1%, 62.6%, 65.9%, 68.0%, 70.7%, 72.8%, 74.9%, 76.5%, 77.7% and 78.8% by month; the median finishes higher at 86.6%.
How long does a location take to fill?
Most of the way inside twelve months. The average location reaches 65.9% by month five and 78.8% by month twelve, against a mature average of 85.1%. So about six points of the climb happens after year one. On the median the gap is smaller still: 86.6% at month twelve against 89.7% at maturity, a difference of 3.1 points. The range stays wide throughout: some location is at 100% in every month of the first year. The lowest is 2.5% in month one and 11.5% at month twelve.
What does the brand cost in total?
A 5.5% royalty on sales against a $500 monthly minimum, a national marketing fund contribution currently at 1.5% with a 2% combined ceiling. A technology fee of $185 to $250 a month, plus property management software at $447 to $546 a year and computer maintenance usually under $1,000 a year. Franchisees who signed before 2020 may pay a lower royalty. Opening costs $950,214 to $1,748,296, including a $60,000 franchise fee and a $20,000 market introduction fee paid to the franchisor. Renewal is $7,500 and a transfer up to $12,500, with a further 10% of the sale price, capped at $50,000, where the franchisor introduced the buyer.
What you have to work out for yourself
Revenue. Building costs stands alone here, zero studio counts, zero license rates, zero costs and zero profit figures. So the filed 89.7% has to be multiplied by your own studio count and your own rate card to become a number. The two variables that decide the outcome are the ones you negotiate. What the landlord charges per square foot and what a stylist in your market will pay for a room.
Who does bookkeeping for a Sola Salon Studios franchise?
Run the close like a small commercial landlord's, because that is what this is. Revenue is a rent roll: license fees by studio, by tenant, by term, with move-ins, move-outs, concessions, deposits and arrears tracked separately. Building costs calculated the same way the franchisor calculates it for royalty reporting, so the two always tie. On the expense side, split base rent from the triple-net and common-area charges your own landlord passes through. Because a CAM reconciliation landing late in the year can move a whole point of margin. And keep the royalty reporting clean: the agreement allows an audit charge with 1% monthly interest where a month is understated by 2% or more. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- No revenue figures. The filing makes no financial performance representation, so there is no disclosed sales number for any location.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
- No range. The filing does not show the highest and lowest locations, so the spread inside the system is unknown.
- No attainment figure. The filing does not say how many locations reached the average it publishes.
Questions worth putting to Sola Salon Studios
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What did the highest and lowest locations sell last year, and what explains the gap?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Sola Salon Studios locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is your occupancy cost actually worth?
A structured review of your unit economics, cash forecast, and reporting, turning the occupancy cost number into a rent roll, a margin and a plan.
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