Sola Salon Suites has transformed the beauty industry by giving independent stylists, estheticians, and wellness professionals a space to own and operate their own businesses without the overhead of a traditional salon. If you are exploring a Sola Salon Suites franchise opportunity, one of the first questions you will need to answer is: how do you fund it? This guide walks you through every financing option available so you can open your doors with confidence.
From SBA loans to equipment financing and everything in between, Crestmont Capital has helped hundreds of franchise owners secure the capital they need. Read on to discover the smartest path to financing your Sola Salon Suites location.
In This Article
Founded in 2004 and franchised since 2005, Sola Salon Suites is the largest salon suite franchise in the United States. The brand operates on a landlord model: as a Sola franchisee, you build out and lease individual salon suites to independent beauty and wellness professionals including hair stylists, nail technicians, estheticians, massage therapists, and more. Each professional runs their own business inside their private suite.
The business model is highly appealing because you are not relying on one or two employees to generate revenue. Instead, you have dozens of tenants paying weekly or monthly rent, creating a diversified and relatively predictable income stream. According to SBA.gov, franchise businesses historically have lower failure rates than independent startups, making them a compelling investment category for lenders.
With over 700 locations across North America and consistent unit economics, Sola has built a strong track record that makes lenders more willing to extend financing compared to newer, unproven concepts.
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Apply Now →Understanding the total investment required is the foundation of any financing plan. The Sola Salon Suites franchise disclosure document (FDD) outlines the typical range of startup costs. While figures may vary depending on your location and the size of the space, here is a general breakdown:
The initial franchise fee for a Sola Salon Suites location typically ranges from $40,000 to $55,000 depending on territory size and agreement terms. This fee grants you the right to operate under the Sola brand and access their proven systems, training, and ongoing support.
This is often the largest single expense. Building out a Sola location from raw or vanilla shell space requires construction of individual suite walls, plumbing for shampoo bowls, electrical, HVAC upgrades, flooring, lighting, and finish work. Costs typically range from $300,000 to $700,000 depending on the size of the space (typically 4,000 to 10,000+ square feet) and local construction costs.
Each suite is furnished and equipped by the individual tenant, but common areas, reception, and shared amenities require your investment. Expect to spend between $30,000 and $80,000 on common area furnishings, signage, and amenities.
Securing a commercial lease requires a security deposit, typically equal to two to three months of rent. Depending on location and lease terms, this could range from $20,000 to $75,000 or more.
Point-of-sale systems, security systems, business insurance, pre-opening marketing, and professional fees add another $25,000 to $50,000 to your startup budget.
Most franchise advisors and lenders recommend maintaining $75,000 to $150,000 in liquid working capital to cover operating expenses during the ramp-up period before your suites reach full occupancy.
When you add everything together, the total estimated investment to open a Sola Salon Suites franchise typically falls between $490,000 and $1,100,000. The wide range reflects differences in market, space size, construction costs, and lease terms. Many owners target the middle of this range around $650,000 to $800,000 for a well-appointed location.
Important Note
These investment estimates are for informational purposes. Always consult the current Franchise Disclosure Document (FDD) and an attorney before making any franchise investment decisions. Actual costs vary by location, market conditions, and negotiated terms.
With a total investment that can exceed $1 million, most franchise owners finance a significant portion of their startup costs. Here are the primary financing vehicles available to Sola Salon Suites franchisees:
The SBA 7(a) loan program is the most popular small business loan in the United States and an excellent fit for franchise businesses like Sola Salon Suites. These loans can provide up to $5 million with repayment terms of up to 10 years for working capital and up to 25 years for real estate. Interest rates are variable and tied to the prime rate, with caps set by the SBA. Learn more at SBA.gov/funding-programs/loans.
SBA 7(a) loans are well-suited for covering leasehold improvements, equipment, and working capital. Because Sola Salon Suites is listed on the SBA Franchise Directory, lenders can expedite the approval process since they do not need to separately vet the franchise agreement.
If you are purchasing the commercial real estate where your Sola location will operate, the SBA 504 loan is worth exploring. It provides long-term, fixed-rate financing for major fixed assets. The structure typically involves a bank covering 50%, a Certified Development Company covering 40% with the SBA guarantee, and the borrower contributing 10%. This can be a powerful structure for real estate purchases.
Traditional bank loans offer competitive rates for well-qualified borrowers. While they typically require strong credit, solid collateral, and established business history, some franchise owners with prior business experience and personal net worth can qualify for conventional financing.
Equipment financing allows you to spread the cost of salon furnishings, signage, technology systems, and other tangible assets over 24 to 72 months. The equipment itself serves as collateral, making this easier to qualify for than unsecured loans. Rates are typically fixed, and you own the equipment outright at the end of the term.
A revolving business line of credit gives you flexible access to capital for managing cash flow during the pre-opening and ramp-up phases. You can draw funds as needed and only pay interest on what you use. This is especially useful for covering initial operating expenses while tenant occupancy builds.
A ROBS arrangement allows you to use retirement funds (401k, IRA) to fund your franchise without paying early withdrawal penalties or taxes. This is a complex transaction that requires specialized legal and financial guidance, but it can be an effective way to inject equity into your business.
Most SBA lenders require a 10% to 20% equity injection from the borrower. This can come from personal savings, home equity, retirement accounts, or gifts from family members. Demonstrating that you have skin in the game reassures lenders about your commitment to success.
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Apply Now →The Small Business Administration does not lend money directly. Instead, it guarantees a portion of loans made by approved lenders, reducing the lender's risk and making them more willing to extend credit to small business owners who might not otherwise qualify for conventional financing.
Sola Salon Suites is included in the SBA Franchise Directory, which means the franchise agreement has been reviewed and approved by the SBA. This streamlines the underwriting process for SBA lenders because they do not need to spend additional time reviewing the franchise documents to ensure compliance with SBA affiliation rules.
The proven business model, strong brand recognition, and established unit economics all make Sola a favorable candidate for SBA financing. Lenders generally look favorably on franchise businesses because the training, systems, and brand support reduce the risk of failure compared to independent startups, a fact supported by multiple studies on franchise success rates as reported by Forbes.
To apply for an SBA loan for your Sola Salon Suites franchise, you will typically need:
Crestmont Capital is a leading alternative lender that specializes in helping franchise owners secure the capital they need quickly and efficiently. Unlike traditional banks that may take 30 to 90 days to process a loan application, Crestmont Capital can often provide term sheets within days and fund loans in as little as two weeks for qualified borrowers.
At Crestmont Capital, we offer a full suite of small business financing products tailored to franchise owners:
According to CNBC, small business owners are increasingly turning to alternative lenders for speed, flexibility, and accessibility. Here is what sets Crestmont Capital apart:
Case Study: Multi-Suite Build-Out Financing
A first-time franchisee in the Southwest approached Crestmont Capital after being turned down by two regional banks. By combining an SBA 7(a) loan for the build-out with an equipment financing facility for furnishings, we helped them secure $720,000 in total capital with a manageable debt service that fit their projected cash flow. Their location opened on time and reached 85% occupancy within six months.
Lenders evaluate franchise loan applications using several key criteria. Understanding what lenders look for can help you prepare a stronger application and improve your chances of approval.
Most SBA lenders prefer a personal credit score of 680 or higher. Conventional lenders may require 700 or above. However, credit score is just one factor. A strong business plan and relevant experience can sometimes offset a lower score. Alternative lenders like Crestmont Capital may work with borrowers who have scores in the mid-600s depending on the overall strength of the application.
Lenders want to see that you have the financial resources to support the business through the startup phase. For a Sola Salon Suites franchise, most lenders want to see a personal net worth of at least $500,000 to $1,000,000 and liquid assets of $150,000 or more for equity injection and reserves.
Experience in real estate management, property management, retail, or hospitality is highly valued because the Sola model is fundamentally a real estate business. Franchise or management experience is also a plus. Your resume and a well-articulated business narrative can significantly strengthen your application.
A comprehensive business plan demonstrates that you have done your homework. It should include a market analysis, competitive assessment, financial projections (income statement, cash flow, balance sheet), and a clear explanation of how you will achieve target occupancy levels. Lenders want to see that you understand the business before they commit capital.
SBA loans require lenders to take available collateral up to the loan amount. This typically means the business assets (equipment, furniture, leasehold improvements) plus a lien on any real estate you own. A personal guarantee is almost always required for SBA loans. If you own a home with equity, that equity may also be taken as collateral.
Every franchise investment is unique. Here are three realistic financing scenarios that illustrate how different owners might structure their Sola Salon Suites funding:
Total project cost: $650,000. The buyer has $130,000 in savings (20% equity injection) and finances the remaining $520,000 with an SBA 7(a) loan over 10 years at a variable rate. Monthly debt service is approximately $5,500. At 80% occupancy with 30 suites averaging $450/week, monthly revenue is approximately $54,000, leaving comfortable room for debt service and operating expenses.
An experienced operator opening their third Sola location uses equity from their existing locations as collateral to secure favorable conventional financing. They leverage a $400,000 term loan for construction plus a $100,000 equipment financing facility, avoiding the need for a full SBA process given their established cash flow history.
A corporate professional with $400,000 in a 401k uses a ROBS structure to inject $300,000 of equity into the franchise company, then secures an SBA 7(a) loan for the remaining $500,000 of the $800,000 project cost. This minimizes personal debt while using retirement savings in a tax-advantaged way.
Choosing the right loan type is critical to managing your cost of capital and cash flow. Here is how the main options compare for a Sola Salon Suites investment:
| Loan Type | Amount | Term | Rate | Best For |
|---|---|---|---|---|
| SBA 7(a) | Up to $5M | Up to 10 yrs | Variable (prime+) | Full project financing |
| SBA 504 | Up to $5M+ | 10-25 yrs | Fixed | Real estate purchase |
| Equipment Financing | $5K-$5M | 2-7 yrs | Fixed (5-18%) | Furnishings, tech |
| Term Loan | $25K-$500K | 1-5 yrs | Fixed (8-25%) | Working capital |
| Line of Credit | $10K-$250K | Revolving | Variable | Cash flow management |
Data represents typical ranges. Consult the current FDD for exact figures.
One of the less-discussed aspects of franchise financing is the critical role your Franchise Disclosure Document (FDD) and franchise agreement play in the loan approval process. Lenders review these documents carefully to understand:
Sola Salon Suites franchise agreements are generally well-structured from a lender's perspective, with multi-year terms and clear renewal provisions. Working with a franchise attorney to understand your agreement before approaching lenders is strongly recommended. The U.S. Census Bureau reports that franchise businesses collectively generate hundreds of billions in economic output annually, underscoring their importance to the lending market.
The primary risk in the Sola Salon Suites model is occupancy. Unlike a retail store where revenue is driven by customer traffic, your revenue as a Sola franchisee is driven by how many of your suites are rented. Lenders understand this and will scrutinize your projections carefully.
Here is how to address occupancy risk in your business plan:
Pro Tip from Crestmont Capital
If you can show your lender two to three signed tenant agreements or letters of intent before you even open, you will dramatically improve your loan approval odds and may qualify for more favorable terms. Pre-leasing is one of the most powerful things you can do to de-risk your application.
The Debt Service Coverage Ratio is one of the most important metrics lenders use when evaluating a franchise loan. It measures whether your business generates enough cash flow to cover its debt obligations.
The formula is simple: DSCR = Net Operating Income / Total Debt Service
Most lenders want to see a DSCR of at least 1.25, meaning your income is at least 25% higher than your debt payments. For a Sola Salon Suites franchise with $50,000 in monthly revenue, $20,000 in operating expenses, and $7,000 in monthly debt service:
This demonstrates why mature, well-occupied Sola locations can be highly attractive to lenders. The key is demonstrating a realistic path to this performance level in your financial projections.
After working with hundreds of franchise buyers, the Crestmont Capital team has identified the most common financing mistakes to avoid:
Ready to Finance Your Franchise?
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Apply Now →Most SBA lenders prefer a minimum personal credit score of 680. Some conventional and alternative lenders may work with scores as low as 640 to 650 if other factors like net worth, experience, and collateral are strong. It is best to check your credit reports and address any errors or derogatory marks before applying.
How much equity injection do I need for a Sola Salon Suites franchise loan?SBA lenders typically require 10% to 20% of the total project cost as an equity injection from the borrower. For a $700,000 project, that means having $70,000 to $140,000 in liquid capital available. This equity can come from savings, retirement accounts (via ROBS), home equity, or family gifts properly documented per SBA guidelines.
Can I use an SBA loan to cover the franchise fee for Sola Salon Suites?Yes, SBA 7(a) loans can be used to cover the initial franchise fee as part of the total project cost. Because Sola Salon Suites is listed on the SBA Franchise Registry, lenders can more easily approve loans that include the franchise fee as an eligible use of proceeds.
How long does it take to get a franchise loan approved?Timelines vary by lender and loan type. Alternative lenders like Crestmont Capital can often provide a term sheet within one to three business days for qualified borrowers. SBA 7(a) loans through preferred lenders typically take two to four weeks for final approval. Traditional bank loans can take four to eight weeks or longer. Starting the process early is critical, especially when you are working with a timeline tied to a franchise agreement or lease deadline.
Do I need prior salon industry experience to qualify for financing?No specific salon industry experience is required. However, lenders do want to see relevant business or management experience. Real estate management, property management, retail, or hospitality experience is particularly valued because the Sola model is fundamentally a real estate investment. If you lack direct experience, a strong business plan and perhaps a management team with relevant backgrounds can help strengthen your application.
Can I finance multiple Sola Salon Suites locations at once?Opening multiple locations simultaneously requires significant capital and a very strong financial profile. Most lenders prefer to see an established first location performing well before funding additional units. However, experienced multi-unit operators with strong personal financial statements and proven cash flow from existing businesses may be able to access financing for two locations concurrently. Talk to Crestmont Capital about your specific multi-unit goals.
What collateral is typically required for a Sola Salon Suites loan?SBA lenders are required to take all available collateral up to the loan amount. For a Sola Salon Suites franchise, collateral typically includes the business assets (equipment, furnishings, leasehold improvements), the franchise agreement itself, and any real estate you own. A personal guarantee from all owners with 20% or more ownership is standard for SBA loans. The lender will conduct a lien search to identify all available collateral assets.
What happens if my Sola Salon Suites location does not reach target occupancy?This is the core business risk. If occupancy falls short, you must continue servicing your debt from other sources. This is why having adequate working capital reserves is so important. If financial difficulties arise, communicating proactively with your lender is critical. Many lenders will work with borrowers on modifications or deferments before allowing a loan to go into default. Having a clear plan for how you would handle a prolonged ramp period should be part of your business plan and loan application.
Are there grants available for Sola Salon Suites franchise owners?Traditional business grants for franchise purchases are rare. However, there are grants available for specific demographics including women-owned businesses, veteran-owned businesses, and minority-owned businesses. Programs through the Small Business Administration, economic development organizations, and private foundations may provide supplemental funding. These grants typically cannot be used as the SBA equity injection requirement but can supplement your working capital reserves.
Can I refinance my Sola Salon Suites franchise loan later?Yes, refinancing is possible once your business has an established track record of cash flow. If your initial loan carried higher rates due to the startup nature of the business, and your location is now profitable and generating stable revenue, you may qualify for lower rates or more favorable terms. Crestmont Capital can review your refinancing options once you have operating history to present to lenders.
What is the typical loan amount for a Sola Salon Suites franchise?Most Sola Salon Suites franchise loans fall in the range of $400,000 to $900,000, depending on the total project cost and the equity injection provided by the borrower. Larger locations in high-cost markets may require financing closer to $1,000,000 or above. The SBA 7(a) program accommodates loans up to $5,000,000, so the program is well-suited for even the largest Sola build-outs.
Does Crestmont Capital finance startups with no existing business revenue?Yes, Crestmont Capital works with franchise startups. When there is no existing business revenue, lenders rely heavily on the franchise's track record, the borrower's personal financial strength, relevant experience, and the quality of the business plan. Having a strong personal credit history, sufficient liquid assets for equity injection and reserves, and a well-documented business plan are all critical for startup franchise financing.
How do interest rates affect my Sola Salon Suites loan payment?Interest rates have a significant impact on your monthly debt service and total cost of borrowing. A $500,000 loan at 8% over 10 years carries a monthly payment of approximately $6,066. At 10%, the same loan costs $6,608 per month, and at 12%, approximately $7,161 per month. Even a 2% difference in rate creates meaningful variation in cash flow. This is why negotiating the best possible rate is important, and working with a lender who has access to multiple programs can help you secure competitive pricing.
What documents do I need to apply for a Sola Salon Suites franchise loan?A typical loan application package includes: personal financial statements for all owners, personal tax returns for three years, a detailed business plan with financial projections, the Sola Franchise Agreement or Letter of Intent, commercial lease agreement or letter of intent for the proposed location, resume demonstrating relevant experience, bank statements for the past three to six months, and evidence of equity injection funds. Your lender may request additional documents depending on the loan type and your specific situation.
What makes Sola Salon Suites a good investment from a lender's perspective?Lenders view Sola Salon Suites favorably for several reasons: the brand has over 700 locations and 20+ years of operating history, it is listed on the SBA Franchise Registry indicating a compliant franchise structure, the business model generates relatively predictable recurring revenue from multiple independent tenants reducing reliance on any single income source, and the real estate-based nature of the business provides tangible collateral in the form of leasehold improvements and equipment. These factors combine to make Sola a more bankable franchise concept than many newer or less-established brands.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.