Sola Salons is one of the fastest-growing salon suite franchise concepts in the United States, offering independent beauty professionals a private, fully equipped salon space to build their own business. If you are considering buying a Sola Salons franchise, understanding the full scope of costs - and how to finance them - is the critical first step toward making your entrepreneurial vision a reality. This guide covers everything you need to know about Sola Salons franchise costs, financing options, qualification requirements, and how Crestmont Capital can help you secure the funding you need.
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Sola Salons was founded in 2004 and has since grown into the nation's leading salon suite franchise, with more than 700 locations across the United States and internationally. The brand's business model is unique and highly resilient: instead of operating a traditional salon, Sola Salons franchisees lease private, fully equipped studio suites to independent beauty professionals - hairstylists, estheticians, massage therapists, nail technicians, and more. These professionals pay weekly rent, run their own businesses on their own schedules, and enjoy total autonomy in a fully private space.
This model creates a relatively predictable income stream for franchisees because revenue comes from rental income rather than retail or service sales. For entrepreneurs seeking a business with strong recurring revenue potential, Sola Salons represents a compelling opportunity in the $50+ billion U.S. beauty industry. According to Forbes, the beauty and personal care sector has shown remarkable resilience even through economic downturns, with consumers prioritizing personal grooming services even during tight budget periods.
However, building and opening a Sola Salons franchise requires a significant upfront capital investment - typically ranging from $1.18 million to $1.94 million in total startup costs. This means that franchise financing is not just an option; it is a practical necessity for the vast majority of aspiring franchisees. Understanding how to navigate the lending landscape, what types of loans are available, and how to position yourself as a strong borrower are all essential skills you will need before signing a franchise agreement.
The U.S. Small Business Administration (SBA.gov) reports that access to capital remains one of the top challenges for small business owners. For franchise buyers, this challenge is compounded by the relatively high cost of entry into established franchise systems. Working with an experienced business lender like Crestmont Capital can help you find the right combination of loan products to cover your total investment without overleveraging your personal assets.
In this guide, we will walk you through every aspect of Sola Salons franchise financing - from initial cost breakdowns to the loan types that best suit this type of investment, to what Crestmont Capital can do to help you open your doors faster.
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Apply Now →Before you can plan your financing strategy, you need a clear picture of how much opening a Sola Salons franchise will cost. The investment is substantial, but it is also structured in a way that seasoned lenders are comfortable with - particularly because Sola Salons is an established, franchisee-backed system with hundreds of proven locations.
Here is a detailed breakdown of the typical costs associated with opening a Sola Salons franchise:
The initial franchise fee for Sola Salons is approximately $60,000. This one-time fee grants you the right to operate under the Sola Salons brand, access their proprietary systems, training programs, and ongoing support infrastructure. For multi-unit development agreements, this fee structure may differ.
Because Sola Salons locations are purpose-built salon suite facilities, the leasehold improvement costs represent the largest portion of the investment. Franchisees typically lease a commercial retail space and then invest heavily to build out the individual studio suites, common areas, reception zones, and support spaces. This construction and build-out cost is highly variable depending on your market, the size of the location, and local construction costs. Across all markets, total real estate and build-out costs typically range from $800,000 to $1.6 million.
Each individual salon suite requires salon chairs, mirrors, cabinetry, lighting, and other fixtures. The common areas also require furniture and decor consistent with the Sola Salons brand standards. Total furniture, fixtures, and equipment costs are estimated at $80,000 to $180,000 depending on the number of suites and location size.
Exterior and interior signage that meets Sola Salons' brand standards is a required expense. This typically runs between $15,000 and $40,000 depending on local sign permitting requirements and the complexity of the signage installation.
Sola Salons utilizes proprietary technology platforms for suite management, tenant onboarding, and operational tracking. Technology and software setup costs are generally in the range of $5,000 to $15,000.
Lenders and the franchisor both recommend maintaining three to six months of operating reserves to cover rent, utilities, payroll (if any), loan payments, and other recurring expenses while you ramp up occupancy. Working capital reserves are typically estimated at $75,000 to $150,000 for the initial operating period.
| Cost Category | Low Estimate | High Estimate |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Real Estate and Build-Out | $800,000 | $1,600,000 |
| Furniture, Fixtures, Equipment | $80,000 | $180,000 |
| Signage and Branding | $15,000 | $40,000 |
| Technology and Software | $5,000 | $15,000 |
| Working Capital Reserves | $75,000 | $150,000 |
| Total Estimated Investment | $1,182,000 | $1,939,000 |
Beyond the startup costs, Sola Salons franchisees pay ongoing fees that must be accounted for in your financial projections and loan repayment planning:
Understanding these costs is essential when working with a lender. Crestmont Capital's financing specialists will help you model your total monthly obligations - including loan repayments, royalties, and operating expenses - to ensure your business cash flow supports your financing terms.
The good news for prospective Sola Salons franchise owners is that this is a well-recognized franchise brand with a proven business model, which makes it easier to secure financing compared to an independent business startup. Lenders view established franchise systems favorably because of their track record, franchisor support, and structured operating procedures.
There are several distinct paths to financing your Sola Salons franchise investment. Most franchisees will use a combination of multiple funding sources rather than relying on a single loan to cover the entire investment. Here is an overview of your primary financing options:
Sola Salons requires prospective franchisees to have a minimum of $500,000 in liquid capital and a minimum net worth of $1,500,000. Your personal equity contribution - the cash and assets you bring to the table - is the foundation of your financing plan. Most lenders require a down payment of 20% to 30% of the total project cost, which means you should plan to invest between $236,000 and $582,000 of your own capital directly into the business.
The Small Business Administration (SBA) offers two loan programs that are particularly well-suited for franchise financing:
Sola Salons is recognized on the SBA's Franchise Directory, which simplifies the loan approval process. Being on the SBA registry means lenders do not need to independently evaluate the franchise agreement before approving your loan.
Conventional long-term business loans through banks, credit unions, or alternative lenders can cover a large portion of your Sola Salons startup costs. These loans typically offer competitive interest rates for well-qualified borrowers with strong credit scores and relevant business experience. Repayment terms generally range from 5 to 10 years.
Equipment financing is a highly effective tool for covering the furniture, fixtures, and salon suite build-out components of your investment. Because this type of loan is secured by the equipment itself, it often carries lower interest rates and more flexible approval criteria than unsecured loans. Equipment loans can often be structured with 100% financing, preserving more of your liquid capital for working capital needs.
A business line of credit provides a revolving source of funds that you can draw on as needed during the build-out and ramp-up phase of your Sola Salons franchise. Unlike a term loan, you only pay interest on the amount you actually draw, making it an efficient tool for managing cash flow during periods of variable spending.
If you have a 401(k) or other qualified retirement account, ROBS (Rollovers for Business Startups) allows you to use those funds to invest in your franchise without incurring early withdrawal penalties or triggering a taxable event. While this strategy requires careful legal and financial planning, it can provide significant upfront capital.
Sola Salons Franchise Financing at a Glance
$1.18M
Min. Total Investment
$500K
Min. Liquid Capital Required
5.5%
Ongoing Royalty Rate
700+
U.S. Locations
$60K
Initial Franchise Fee
$1.5M
Min. Net Worth Required
When it comes to financing a Sola Salons franchise, having a clear understanding of the different loan products available will help you make informed decisions and negotiate better terms. Here is a closer look at each loan type and how it applies to your Sola Salons investment:
The SBA 7(a) loan program is by far the most popular financing tool for franchise buyers. For a Sola Salons franchise, an SBA 7(a) loan can be used to finance the franchise fee, leasehold improvements, furniture and equipment, and initial working capital. Key features include:
To explore SBA loan options, visit Crestmont Capital's SBA loan page or the official SBA.gov resource page.
For borrowers with strong credit profiles and established business histories, conventional term loans from banks and alternative lenders may offer faster approval and more flexible terms than SBA loans. Small business loans from Crestmont Capital can fund between $10,000 and $5 million, with repayment periods from 3 months to 10 years. These loans are ideal for covering the franchise fee and portions of the build-out costs.
The furniture, fixtures, and built-in salon equipment in each Sola Salons suite can often be financed separately through equipment financing. Because the loan is secured by the physical assets, approval requirements are often more flexible and interest rates more competitive. Equipment loans can cover up to 100% of the equipment value, preserving your liquid capital for working capital and other startup expenses.
A revolving business line of credit is a powerful tool for managing cash flow during the initial ramp-up period after opening your Sola Salons location. As you work to achieve full suite occupancy, you may experience variable revenue while fixed costs remain constant. A line of credit allows you to bridge these gaps without disrupting your loan repayment schedule.
Sometimes, opportunities in franchise real estate move quickly. If you identify the ideal location for your Sola Salons franchise and need to secure it fast, fast business loans from Crestmont Capital can be approved and funded in as little as 24 hours, giving you the competitive edge to secure high-traffic commercial locations before other buyers.
Short-term business loans can serve as bridge financing between your initial equity injection and the closing of your long-term SBA or conventional loan. They can also be used to cover unexpected construction cost overruns or additional equipment needs that arise during the build-out phase.
Crestmont Capital is the #1-rated business lender in the United States, and we have helped hundreds of franchise owners across all sectors secure the capital they need to open and grow their businesses. Our team understands the specific financial demands of franchise investments, including the complexity of multi-source funding strategies that most Sola Salons franchisees require.
We have deep experience working with franchise buyers at every stage of the investment lifecycle - from initial capitalization and location build-outs to multi-unit expansion and refinancing. Our lending specialists understand how to structure franchise loans to meet both lender requirements and franchisor financial qualifications, making the process smoother and faster for you.
Crestmont Capital offers access to a comprehensive suite of lending products that can be combined to cover your full Sola Salons investment:
If your personal credit history is less than perfect, you are not necessarily out of options. Crestmont Capital offers bad credit business loans that look at the full picture of your financial situation - including your business plan, equity position, and industry experience - rather than focusing solely on your credit score. We believe that creditworthy borrowers deserve a second look.
When you work with Crestmont Capital, you are not filling out a form and hoping for the best. You work directly with a dedicated lending specialist who will review your financial profile, identify the best loan products for your situation, help you prepare your loan application, and guide you through every step of the process. We close loans faster than traditional banks - often in as few as 5 to 10 business days for qualified borrowers.
If your long-term plan includes developing multiple Sola Salons locations, Crestmont Capital can build a financing roadmap that covers your initial location and sets the groundwork for future unit development. Our multi-unit franchise financing specialists understand how to structure deals that support both your immediate needs and your long-term expansion goals.
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Apply Now →Qualifying for a Sola Salons franchise loan involves meeting requirements set by both the franchisor and your lender. Here is what you need to prepare:
Sola Salons has established financial qualification benchmarks to ensure that franchisees have the resources to successfully open and operate a location:
Lenders evaluating a Sola Salons franchise loan application will typically look at:
To maximize your chances of loan approval and favorable terms:
According to CNBC, franchise borrowers who work with experienced franchise lenders - rather than general commercial banks - consistently report faster approvals and better loan terms. Crestmont Capital's franchise lending specialists know exactly what SBA lenders and conventional lenders need to see from a Sola Salons franchise applicant.
Every Sola Salons franchise buyer has a unique financial situation. Here are several representative financing scenarios that illustrate how different borrowers might approach the funding challenge:
Profile: Corporate executive with $800,000 in liquid assets, $2.5 million net worth, and a 750 credit score. Targeting a suburban location with an estimated total investment of $1.4 million.
Financing Strategy: $280,000 personal equity injection (20%), $1,120,000 SBA 7(a) loan at competitive rate over 10 years. Monthly payment approximately $12,000-$14,000.
Outcome: Strong approval profile. SBA lender likely to approve based on credit, net worth, and liquid capital. Crestmont Capital helps package the application and identifies the best SBA-approved lender in the applicant's region.
Profile: Small business owner with $550,000 in liquid capital, $1.6 million net worth, and a 700 credit score. Targeting an urban location with a projected $1.7 million total investment.
Financing Strategy: $400,000 personal equity, $900,000 SBA 7(a) loan for build-out and franchise fee, $400,000 equipment financing for salon suite furniture and fixtures.
Outcome: Multi-source funding strategy reduces individual loan amounts, improving approval odds. Equipment financing covers the asset-backed portion at lower rates, while the SBA loan covers the remaining balance.
Profile: Existing Sola Salons franchisee with one profitable location generating $450,000 in annual revenue. Seeking to open a second location at an estimated cost of $1.3 million.
Financing Strategy: $200,000 equity from business cash reserves, $700,000 conventional term loan, $400,000 equipment financing. The existing Sola Salons location serves as additional collateral.
Outcome: Existing franchise cash flow strengthens the loan application significantly. Crestmont Capital's multi-unit franchise team structures the deal to minimize impact on working capital at the existing location.
Profile: Commercial real estate investor who owns the property where the Sola Salons location will be built. Total investment of $1.2 million, with $500,000 in property equity available.
Financing Strategy: $500,000 from commercial real estate equity (refinanced or used as collateral), $700,000 SBA 504 loan for leasehold improvements and equipment.
Outcome: Property ownership is a major advantage. The SBA 504 loan is specifically designed for this type of scenario, offering long-term fixed rates and strong terms for real estate and construction projects.
Profile: Entrepreneur with significant industry experience but a 640 credit score due to past business challenges. Strong net worth of $1.8 million and $600,000 in liquid capital.
Financing Strategy: Alternative business term loan from Crestmont Capital combined with a large equity injection ($600,000, approximately 40% of total investment). Smaller loan amount reduces lender risk.
Outcome: Large equity contribution and strong net worth compensate for credit score. Crestmont Capital's bad credit business loan options provide a viable path to funding.
Profile: Experienced hospitality group seeking a multi-unit development agreement to open 5 Sola Salons locations over 5 years. Total capital requirement: $7 to $9 million.
Financing Strategy: Portfolio-level financing with multiple SBA 7(a) loans structured separately for each unit, supplemented by a master business line of credit for working capital management across all units.
Outcome: Crestmont Capital's multi-unit franchise team coordinates financing across all planned units, building a long-term financing roadmap aligned with the development timeline.
These scenarios illustrate the range of approaches available to Sola Salons franchise buyers. The right strategy depends on your specific financial profile, risk tolerance, and long-term goals. Crestmont Capital's specialists will analyze your unique situation and recommend the combination of loan products that best fits your needs.
Applying for franchise financing can feel overwhelming - especially when you are simultaneously navigating the franchise discovery process, site selection, and the legal review of your franchise agreement. Crestmont Capital makes the financing side of this process as simple and efficient as possible.
Your first step is to speak with a Crestmont Capital franchise lending specialist. During this free consultation, we will review your financial profile, discuss your Sola Salons investment goals, and outline the loan products that are likely to be the best fit. You can initiate this conversation by submitting an application at Crestmont Capital's application portal.
You will need to compile the following documents for your loan application:
Once your documentation is compiled, your Crestmont Capital specialist will guide you through the loan application submission. We work with an extensive network of SBA lenders, conventional banks, and alternative financing partners to identify the lenders most likely to approve your specific profile.
Underwriting timelines vary by loan type. SBA loans typically take 30 to 90 days for full approval. Conventional term loans and alternative business loans can be approved in as few as 5 to 15 business days. During underwriting, your lender may request additional documentation or clarification. Your Crestmont Capital specialist will help you respond promptly to keep the process on track.
Once your loan is approved, you will proceed to closing. At closing, you will sign your loan documents, make your equity injection, and receive your loan funds. Construction and build-out can then begin. Crestmont Capital can arrange multiple tranches of funding that align with construction milestones, ensuring funds are available when you need them without excessive draw-down of interest-bearing principal before it is needed.
From initial application to funded loan, the typical timeline for a Sola Salons franchise financing package is:
According to AP News, small business lending conditions in the beauty and personal services sector remain favorable, with lenders actively seeking well-qualified franchise borrowers in high-demand markets. Starting your financing process early - ideally at the same time you begin the Sola Salons franchise discovery process - positions you to move quickly once you receive franchisor approval.
The total estimated investment to open a Sola Salons franchise ranges from approximately $1,182,000 to $1,939,000. This includes a $60,000 initial franchise fee, leasehold improvements, furniture and fixtures, signage, technology, and working capital reserves. The exact cost depends on your market, location size, and local construction costs.
Yes. Sola Salons is recognized on the SBA's Franchise Directory, which makes it easier to obtain SBA 7(a) or SBA 504 loan financing. SBA loans offer competitive interest rates, long repayment terms, and lower down payment requirements compared to conventional loans. Crestmont Capital can guide you through the SBA application process.
Sola Salons requires prospective franchisees to have a minimum of $500,000 in liquid capital. This does not mean you need $500,000 in cash sitting in a bank account - liquid assets including stocks, bonds, retirement accounts (subject to withdrawal rules), and other liquid investments typically count toward this requirement.
For SBA and conventional loans, lenders typically prefer a personal credit score of 680 or higher. However, scores below 680 do not automatically disqualify you. Crestmont Capital offers alternative financing solutions for borrowers with challenged credit, particularly when supported by strong equity and net worth.
Yes. The furniture, fixtures, salon chairs, mirrors, cabinetry, and other physical equipment installed in Sola Salons suites can often be financed through equipment loans. Equipment financing is secured by the assets themselves, which often results in more favorable terms and higher approval rates than unsecured business loans.
Approval timelines vary by loan type. Alternative and conventional business loans from Crestmont Capital can be approved in as few as 5 to 20 business days. SBA loans typically take 30 to 75 business days. Equipment financing can often be approved in 3 to 10 business days. Starting your application early in the franchise discovery process is strongly recommended.
Sola Salons charges franchisees a royalty fee of 5.5% of gross revenues. In addition, franchisees contribute 1.5% to 2% of gross revenues to the national brand fund. These ongoing fees should be factored into your financial projections when planning loan repayment schedules.
Yes. Crestmont Capital specializes in multi-unit franchise financing. If you are pursuing a Sola Salons area development agreement to open multiple locations, our specialists can build a comprehensive financing roadmap that covers your current and future unit openings, structured to align with your development timeline and cash flow needs.
Sola Salons has demonstrated strong brand recognition and a resilient business model since its founding in 2004, growing to 700+ locations nationwide. The salon suite concept provides relatively predictable rental income compared to traditional retail businesses. As with any franchise investment, thorough due diligence - including reviewing the Franchise Disclosure Document (FDD) and consulting with existing franchisees - is strongly recommended before committing.
The Franchise Disclosure Document (FDD) is a legally required document that provides detailed information about the franchise system, including investment costs, fees, franchisee obligations, and financial performance representations. Lenders reviewing a franchise loan application will use the FDD to understand the terms of your franchise agreement and assess the business model's viability. Having a complete FDD ready when you apply for financing speeds up the lender review process.
Absolutely. A business line of credit is an excellent tool during the build-out phase because expenses can be unpredictable and construction costs often vary from initial estimates. With a line of credit, you draw only what you need and pay interest only on the outstanding balance, making it a cost-effective way to manage variable expenses during the pre-opening period.
Yes. Crestmont Capital works with first-time franchise buyers as well as experienced multi-unit operators. Our lending specialists are experienced in helping first-time buyers understand the financing process, prepare strong loan applications, and select the loan products that best fit their financial profile and investment goals.
Typical documentation requirements include: 3 years of personal and business tax returns, 3 months of bank statements, a personal financial statement, a completed Sola Salons franchise agreement or letter of intent, a detailed business plan with financial projections, and construction/build-out cost estimates. Crestmont Capital provides a comprehensive checklist tailored to your specific loan type.
Unlike traditional banks, Crestmont Capital specializes in business lending and has deep expertise in franchise financing. We offer a wider range of loan products, faster approval timelines, and more personalized service than most banks. We also work with borrowers across a wider range of credit profiles and can structure multi-source financing packages that banks typically cannot offer in a single engagement.
Yes. The $60,000 initial franchise fee can be financed as part of an SBA 7(a) loan or conventional business term loan. It cannot be financed through equipment loans (since it is not a physical asset). Some buyers also cover the franchise fee with personal savings while using loans for the larger construction and build-out costs, which helps reduce the total amount borrowed at higher interest rates.
Take the First Step Toward Your Sola Salons Franchise
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Apply Now →Your 5-Step Action Plan for Sola Salons Franchise Financing
Contact Sola Salons Franchising
Visit solafranchising.com to submit an inquiry and begin the franchise discovery process. Request the Franchise Disclosure Document (FDD) to begin your due diligence.
Apply with Crestmont Capital
Submit your loan application at Crestmont Capital to begin the pre-qualification process. The earlier you start, the more time you have to optimize your application before you need funding.
Prepare Your Documentation
Gather your tax returns, bank statements, personal financial statement, and business plan. Work with a franchise-experienced CPA to ensure your financials are presented in the most favorable light.
Select Your Location
Work with Sola Salons' real estate team and your own advisors to identify and secure the right location. Having a signed lease or letter of intent strengthens your loan application significantly.
Close Your Loan and Begin Construction
Once your financing is approved and closed, construction of your Sola Salons location can begin. Crestmont Capital will coordinate funding draws aligned with construction milestones to ensure efficient use of your capital.
Opening a Sola Salons franchise is a significant financial undertaking, but it is also a compelling opportunity to build a scalable, recurring-revenue business in one of the most resilient sectors of the U.S. economy. With a total investment ranging from $1.18 million to $1.94 million, understanding how to structure and finance that investment is just as important as choosing the right market or location. Whether you pursue an SBA 7(a) loan, a combination of equipment financing and conventional term loans, or a multi-source funding strategy custom-designed for your financial profile, the right lender makes all the difference. Crestmont Capital's franchise financing specialists are ready to help you navigate the full scope of Sola Salons franchise costs and secure the capital you need to move from prospect to proud franchise owner. If you are serious about joining the Sola Salons system and need a financing partner who understands the franchise industry inside and out, apply with Crestmont Capital today and take the first step toward your grand opening.
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.