Sola Salons Franchise Prices, Charges, Revenues, Earnings (2023 Evaluate)

On this unique Franchise Chatter FDD Speak publish, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for a Sola Salons franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise charge, royalty charge, and advertising and marketing charge for a Sola Salons franchise, primarily based on Gadgets 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Sola Salons retailers initially of the 12 months and the tip of the 12 months for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Sola Salons franchise alternative

Part V – Presentation and evaluation of Sola Salons’ monetary efficiency representations (common revenues and/or earnings), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with data on the:

• December 2021 common, median, highest, and lowest occupancy proportion for the Sola Salons franchised places that (a) operated in the US underneath a Franchise Settlement; (b) had been open for no less than 13 months as of December 31, 2021; (c) submitted required occupancy stories underneath the Franchise Settlement throughout 2021; (d) weren’t underneath contract for buy by the franchisor or any of its associates at any time through the relevant calendar 12 months; and (e) didn’t report over 100% occupancy (as such reporting might counsel an error within the knowledge)

• 2019, 2020, and 2021 common, median, highest, and lowest gross income (full 12 months and by quarter) for the Sola Salons franchised places that (a) operated in the US underneath a Franchise Settlement; (b) had been open for no less than 13 months as of December 31 of the relevant 12 months; (c) submitted all required income stories through the relevant calendar 12 months; and (d) weren’t underneath contract for buy by the franchisor or any of its associates at any time through the relevant calendar 12 months

• 2021 common, median, highest and lowest gross income and working revenue, and common working bills (advertising and marketing expense, utility expense, repairs and upkeep expense, Royalty and Nationwide Advertising Fund Contribution expense, lease expense, labor expense, and normal and administrative expense) for the 28 company-owned Sola Salons places in the US that (a) had been open for no less than 13 months as of December 31, 2021; (b) operated constantly all through 2021; and (c) was not underneath contract to buy by Sola Salons or any of its associates at any time throughout 2021

Part VI – Key ratios, comparables, computations, and analyses for the Sola Salons franchise alternative (unique content material for Platinum subscribers)

Part I – Sola Salons Franchise Prices

• Preliminary Franchise Price:  $55,000
• Journey and Residing Bills:  $2,500 to $4,000
• Web site Choice Help:  $0 to $3,500
• Lease Supervisor Property Administration Software program (6 months):  $582 to $882
• Architectural Charges:  $15,000 to $20,000
• Lease or Actual Property:  $22,400 to $82,000
• Design Companies:  $3,200 to $5,000
• Enhancements/Conversions:  $504,000 to $1,440,000
• Furnishings and Fixtures:  $147,000 to $405,000
• Signage:  $10,000 to $20,000
• Utilities:  $3,906 to $5,970
• Working Provides:  $1,000 to $3,000
• Promoting/Advertising:  $10,900 to $20,000
• Insurance coverage (yearly foundation):  $5,000 to $10,000
• Laptop Tools and Software program:  $1,300 to $2,300
• Repairs and Upkeep:  $6,355 to $7,865
• Extra Funds for Preliminary 3 Months:  $20,000 to $50,000
• Whole Estimated Sola Salons Franchise Prices:  $808,143 to $2,134,517

Part II – Sola Salons’ Preliminary Franchise Price, Royalty Price, and Advertising Price

• Preliminary Franchise Price:  $41,000 to $55,000
• Royalty Price:  5.5% of Gross Income, minimal of $500 per thirty days
• Nationwide Advertising Fund (“NMF”):  as much as 2% of Gross Income per thirty days; at the moment 1.5% of Gross Income
• Advertising Cooperative:  as established by Advertising Cooperative, however to not exceed 2% of month-to-month Gross Income

Part III – Variety of Franchised and Firm-Owned Sola Salons Shops

Franchised

2019

• Shops on the Begin of the 12 months:  413
• Shops on the Finish of the 12 months:  459
• Web Change:  +46

2020

• Shops on the Begin of the 12 months:  459
• Shops on the Finish of the 12 months:  512
• Web Change:  +53

2021

• Shops on the Begin of the 12 months:  512
• Shops on the Finish of the 12 months:  555
• Web Change:  +43

Firm-Owned

2019

• Shops on the Begin of the 12 months:  13
• Shops on the Finish of the 12 months:  25
• Web Change:  +12

2020

• Shops on the Begin of the 12 months:  25
• Shops on the Finish of the 12 months:  30
• Web Change:  +5

2021

• Shops on the Begin of the 12 months:  30
• Shops on the Finish of the 12 months:  39
• Web Change:  +9

Part IV – Information Updates on the Sola Salons Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Sola Salons Franchise (Merchandise 19, 2022 FDD)

Half 1 – Median and Common Occupancy for Franchise Places Satisfying the Occupancy Reporting Standards as of December 31, 2021

• The next desk contains data concerning the full variety of Sola Salons franchise places in the US that met or exceeded all the following standards as of December 31, 2021 (“Occupancy Reporting Standards”): (a) operated in the US underneath a Franchise Settlement; (b) had been open for no less than 13 months; and (c) submitted all required occupancy stories underneath the Franchise Settlement throughout 2021.

• The Occupancy Reporting Standards excludes any Sola Salons places (i) situated exterior the US, (ii) owned, operated, or underneath contract to buy by Sola Salons or any of its associates at any time throughout 2021, and (iii) reporting over 100% occupancy (as such reporting might counsel an error within the knowledge).

• The median and common occupancy data was ready from the data and stories, as reported by franchisees of every of the Sola Salons franchise places satisfying the Occupancy Reporting Standards. Sola Salons has relied solely on the knowledge reported to it by franchisees.

• To calculate the median and common Occupancy, Sola Salons analyzed occupancy data and stories for the month of December 2021, as reported by franchisees of every of the Sola Salons franchise places satisfying the Occupancy Reporting Standards as of December 31, 2021. Sola Salons then supplied the bottom occupancy proportion and the best occupancy proportion.

• Median Occupancy:  96%
• Common Occupancy:  91%
• Highest Occupancy Proportion in Vary:  100%
• Lowest Occupancy Proportion in Vary:  19%

Half 2 – Franchised Sola Salons Common and Median Gross Income for 2019, 2020, and 2021

• The next desk contains 2019, 2020, and 2021 Gross Income data concerning the Sola Salons franchise places in the US that met or exceeded all the following standards as of December 31, 2019 (“2019 Reporting Standards”), December 31, 2020 (“2020 Reporting Standards”), or December 31, 2021 (“2021 Reporting Standards”) as relevant: (a) operated in the US underneath a Franchise Settlement; (b) had been open for no less than 13 months; and (c) submitted all required income stories throughout 2019, 2020, or 2021, as relevant.

• The 2019, 2020, and 2021 Reporting Standards exclude any Sola Salons places (i) situated exterior the US, or (ii) owned, operated, or underneath contract to buy by Sola Salons or any of its associates at any time throughout 2019, 2020, or 2021, as relevant.

• The median and common data for Gross Income was ready from the data and stories, as reported by franchisees of every of the Sola Salons places satisfying the 2019 Reporting Standards, 2020 Reporting Standards, or 2021 Reporting Standards, as relevant.

• Pursuant to the Franchise Settlement, “Gross Income” contains the full of all earnings derived from product sales and gross receipts, whether or not the earnings is acquired by money, credit score, checks, companies, property, or different technique of change and excludes solely these gross sales taxes {that a} franchisee should by regulation gather from prospects and that franchisee pays to the federal government, promotional or low cost coupons to the extent that franchisee realizes no earnings, and worker or lessee receipt of companies, if free, or any portion not paid for by an worker or studio lessee.

2019

• Common Q1 Gross Income:  $87,734.96
• Common Q2 Gross Income:  $92,953.04
• Common Q3 Gross Income:  $97,654.94
• Common This autumn Gross Income:  $94,941.65
• Common Full 12 months Gross Income:  $373,284.58

• Median Q1 Gross Income:  $84,097.00
• Median Q2 Gross Income:  $88,714.00
• Median Q3 Gross Income:  $94,731.00
• Median This autumn Gross Income:  $92,770.00
• Median Full 12 months Gross Income:  $361,351.75

2020

• Common Q1 Gross Income:  $80,425.62
• Common Q2 Gross Income:  $38,274.11
• Common Q3 Gross Income:  $84,951.46
• Common This autumn Gross Income:  $92,516.17
• Common Full 12 months Gross Income:  $296,167.36

• Median Q1 Gross Income:  $78,605.00
• Median Q2 Gross Income:  $37,111.00
• Median Q3 Gross Income:  $82,390.00
• Median This autumn Gross Income:  $89,085.00
• Median Full 12 months Gross Income:  $284,446.00

2021

• Common Q1 Gross Income:  $96,346.33
• Common Q2 Gross Income:  $102,810.30
• Common Q3 Gross Income:  $105,244.11
• Common This autumn Gross Income:  $106,549.87
• Common Full 12 months Gross Income:  $410,950.61

• Median Q1 Gross Income:  $91,732.57
• Median Q2 Gross Income:  $99,501.17
• Median Q3 Gross Income:  $101,493.14
• Median This autumn Gross Income:  $103,750.00
• Median Full 12 months Gross Income:  $399,254.07

Half 3 – Firm-Owned Sola Salons Common and Median Gross Income and Working Revenue for 2021

• The next tables embody 2021 Gross Income, Working Revenue, and working bills figures concerning the company-owned Sola Salons places in the US that met or exceeded all the following standards as of December 31, 2021 (“Firm Reporting Standards”): (a) had been open for no less than 13 months; (b) operated constantly all through 2021; and (c) was not underneath contract to buy by Sola Salons or any of its associates at any time throughout 2021.

• On the finish of Sola Salons most up-to-date fiscal 12 months ended December 31, 2021, Sola Salons had a complete of 39 company-owned Sola Salons places. Of these, 28 (72%) met the Firm Reporting Standards. The corporate-owned Sola Salons places that met the Firm Reporting Standards function in Colorado (15) and California (13).

• No company-owned Sola Salons places closed in 2021.

• Variety of Sola Salons That Met the Firm Reporting Standards:  28

• Common Gross Income:  $471,233
• Quantity/Proportion That Met or Exceeded Common Gross Income:  12 / 43%
• Median Gross Income:  $423,627
• Highest Gross Income:  $743,206
• Lowest Gross Income:  $269,692

• Common Working Revenue:  170,881
• Quantity/Proportion That Met or Exceeded Common Working Revenue:  12 / 43%
• Median Working Revenue:  $154,393
• Highest Working Revenue;  $328,377
• Lowest Working Revenue:  $59,699

• The next desk contains 2021 Gross Income and working bills knowledge concerning the company-owned Sola Salons places in the US that met the Firm Reporting Standards.

• Common Gross Income:  $471,233 (100%)
• Advertising Expense:  $1,525 (0.32%)
• Utility Expense:  $24,663 (5.23%)
• Repairs and Upkeep Expense:  $27,668 (5.87%)
• Royalty and Nationwide Advertising Fund Contribution Expense:  $30,576 (6.49%)
• Lease Expense:  $213,604 (45.33%)
• Labor Expense:  $2,154 (0.46%)
• Common and Administrative:  $61,004 (12.95%)

• “Working Revenue” means Gross Income minus all strange and recurring working bills earlier than the deduction of bills for curiosity, earnings taxes, depreciation, and amortization.

• Firm-owned Sola Salons advertising and marketing expense doesn’t embody the charges, wages, or salaries of staff or businesses offering advertising and marketing companies for these places. Chances are you’ll select to rent an company or worker to help you with advertising and marketing your Sola Salons. Some franchise homeowners elect to offer their very own advertising and marketing companies or have a normal supervisor carry out advertising and marketing companies.

• You might be required to spend a minimal $3,600 per 12 months on native advertising and marketing. Sola Salons additionally recommends you spend an extra minimal of $10,000 in the direction of pre-opening and post-opening advertising and marketing in your particular person market through the first 12 months of operation.

• The Royalty Price for company-owned Sola Salons is 5% of Gross Income. In contrast, the Royalty Price for franchisees underneath the present type of Franchise Settlement is 5.5% of Gross Income. Firm-owned Sola Salons places contribute to the Nationwide Advertising Fund on the identical foundation as franchisees: 1.5% of Gross Income.

• On the identical Royalty Price paid by new franchisees (5.5% of Gross Income) plus the Nationwide Advertising Fund contribution paid by franchisees and company-owned Sola Salon places (1.5% of Gross Income), the mixed common Royalty and Nationwide Advertising Fund Expense for these company-owned Sola Salons places would have been roughly $32,986.31 in 2021.

• Your Lease Expense will range tremendously relying on the realm of the nation that your Sola Salons is situated. These company-owned Sola Salons places that met the Firm Reporting Standards function in Colorado (15) and California (13) and have a mean of 6,147 sq. toes. Sola Salons places sometimes vary from 4,200 sq. toes to 9,000 sq. toes, and the common Sola Salons franchised location is roughly 6,000 sq. toes.

• Firm labor prices doesn’t embody wages or salaries of the personnel managing these places. For each company-owned Sola Salons and franchised Sola Salons, a single worker might handle one or a number of Sola Salons. A number of company-owned Sola Salons are managed by a single, shared worker.

• Some franchise homeowners elect to function the supervisor of their Sola Salons franchised location(s); whether or not or how a lot such franchise homeowners paid themselves for such managerial position is left to their sole discretion.

• If every company-owned Sola Salons location had been managed by a single site-specific worker, the extra imputed annual labor price for such supervisor could be no less than $36,000.

• Your labor prices will range relying on the variety of staff you rent to handle your location(s) in addition to prevailing wage charges in your space of the nation.

• Chances are you’ll incur extra prices not described above, together with, for instance, concerning insurance coverage. Insurance coverage bills for Sola Salons and its associates (together with concerning company-owned Sola Salons) are shared and distributed amongst numerous associates. Your insurance coverage expense can be between $5,000 to $10,000 yearly for a single location.

Part VI – Sola Salons Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️