SOLA SALONS

Item 7 details the initial investment from $1,181,960 to $1,939,349, covering 4,200-9,000 sq ft spaces converted into 8x12 studios, plus buildout and equipment. Franchise fee hits $60,000, followed by 5.5% royalty (minimum $500/month), 1.5% brand fund, $99/month software, and up to $250/month tech fees—higher ongoing costs than many service peers, pressuring margins until high occupancy. Item 19 shines with average gross revenue of $442,438 and median $420,052 across mature units, suggesting solid top-line potential if you hit 80-90% studio fill rates, but subtract fees and expenses for EBITDA likely in the low six figures.

System metrics signal health: 660 franchise locations grew 5% from 631 in 2023, with 39 projected new units, just 2 non-renewals, and 7 transfers—low churn versus category norms. SBA data on 31 loans averaging $566,765 shows a 9.7% default rate, below many retail-food benchmarks but worth monitoring amid real estate sensitivity. For real estate-savvy investors, this scales via multi-unit potential in high-traffic areas, but location selection and maintenance execution drive success over brand hype.