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Sola Franchise Corporation Franchise ProfileHealth & Beauty Franchises > Hair Salons |
What is the Initial Investment for a Sola Franchise Corporation Franchise?
To open a Sola Franchise Corporation franchise, you will need to prepare for a total initial investment ranging from $545,476 to $1,737,517. This includes a franchise fee of $55,000, which is a one-time payment made to secure your franchise rights. Additionally, you should be aware of ongoing financial commitments, including a royalty fee of 5.5% on gross sales and a marketing fee of 1.5%. Having at least $55,000 in cash readily available is also required, along with a net worth of $500,000 to $1,000,000 to qualify for ownership.
What Are the Financial Performance Metrics for a Sola Franchise Corporation Franchise?
The average annual revenue per unit for a Sola Franchise Corporation franchise is approximately $83,849, with a median annual revenue of $85,637.94. However, revenues can vary significantly, with the lowest annual revenue recorded at $443.92 and the highest reaching $240,933. The breakeven time for new units is estimated at 12 months, while the investment payback period is around 20 months, making it crucial for prospective franchisees to assess their financial readiness and market potential before diving in.
What Are the Average Running Expenses for a Sola Franchise Corporation Franchise?
When operating a Sola Franchise Corporation franchise, you should anticipate average annual running expenses totaling approximately $256,035. Key expense categories include rent, which typically amounts to $200,000, followed by utilities at $5,970, and advertising/marketing costs at $10,900. Other expenses such as insurance, repairs, maintenance, and initial funds for the first three months also contribute to the overall financial picture. Understanding these costs is essential for effective budgeting and financial planning.
How Many Franchised Units Does Sola Franchise Corporation Have?
Sola Franchise Corporation has shown consistent growth in its number of franchised units over recent years. In 2018, there were 362 franchised units, which increased to 413 in 2019, and further grew to 459 units by 2020. The total number of units, including corporate-owned locations, rose from 375 in 2018 to 489 in 2020. This growth indicates a strong demand for the franchise and can be an encouraging sign for potential franchisees looking to invest in a thriving brand.
Sola Franchise Corporation Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Sola Franchise Corporation Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 375 | 438 | 489 |
| Net Change YoY | 63 | 51 | |
| Franchised Units | 362 | 413 | 459 |
| Net Change YoY | 51 | 46 | |
| Corporate Units | 13 | 25 | 30 |
| Net Change YoY | 12 | 5 |
Franchise Overview
Sola Franchise Corporation offers a unique business opportunity in the franchise sector, focusing on providing exceptional products and services. With an initial investment ranging from $545,476 to $1,737,517, aspiring franchisees can tap into a well-established brand that has demonstrated growth and profitability across various markets. The franchise model is designed to support new owners with comprehensive training and ongoing operational assistance.
Investment Requirements
To become a franchisee with Sola, an initial franchise fee of $55,000 is required, along with a cash requirement of $55,000. Franchisees must also have a net worth between $500,000 and $1,000,000 to ensure they can sustain operations and cover initial expenses. Additionally, franchisees are subject to a royalty fee of 5.5% of gross sales and a marketing fee of 1.50%, which helps in maintaining brand presence and driving customer engagement.
Financial Performance
Sola Franchise Corporation has shown promising financial metrics, with average annual revenue per unit reported at $83,849 and a median annual revenue of $85,637.94. The highest revenue recorded per unit stands at $240,933, illustrating the potential for profitability. Franchisees can expect a breakeven time of approximately 12 months and an investment payback period of around 20 months, making it an attractive opportunity for those looking to enter the franchise market.
Operational Insights
Franchisees should be aware of the average running expenses, which total approximately $256,035 annually. Key expenses include rent ($200,000), utilities ($5,970), and advertising/marketing ($10,900). Understanding these operational costs is crucial for effective financial planning and ensuring the business runs smoothly while maximizing profitability.
Growth Trends
Sola Franchise Corporation has experienced consistent growth in the number of franchised units, increasing from 362 in 2018 to 459 in 2020. This upward trend reflects the brand's expanding market presence and appeal to consumers. The total number of units has also risen, indicating strong franchisee interest and potential for further development in new territories.
Support and Training
Sola Franchise Corporation places a strong emphasis on supporting its franchisees through comprehensive training programs and ongoing operational support. New franchisees receive guidance on various aspects of running their business, including marketing strategies, operational best practices, and customer service excellence. This commitment to franchisee success is a cornerstone of Sola's business model, helping owners achieve their goals and drive profitability.
Frequently Asked Questions
The initial investment for a Sola Franchise Corporation franchise ranges from $545,476 to $1,737,517, which includes the franchise fee and other startup costs.