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From reviewing the franchise disclosure document to speaking with existing owners, completing thorough due diligence allows candidates to make an informed investment decision.
Sola Salons, the salon suite franchise with over 740 units nationwide, presents an attractive investment with a largely real estate-focused model. Still, understanding what to look for when evaluating the opportunity can help a prospective franchisee ensure they’re making a sound investment choice that aligns with their passions and goals.
“We’re committed to establishing strong, long-lasting partnerships with franchise owners, and that starts with a thoughtful discovery process,” said John Pantera, vice president of franchise development at Radiance Holdings, Sola Salons’ parent company. “We look at the franchise discovery process as one of mutual evaluation, meaning we are looking to determine whether the prospective owner is a good fit for our brand, and we’re giving them information to help them evaluate whether our model is also a good fit for them.”
Start with the corporate team to learn the basics. This is the time to explore the brand’s history, business model and key differentiators.
“Sola Salons is a simple model. Not easy, but simple,” Pantera said. “A big part of due diligence is actually going to a Sola to see what it’s about.”
The FDD is full of valuable information, including backgrounds on the leadership team, information on the business model, initial costs and financial representations.
“We have a very detailed FDD,” Pantera said. “We have over 65 corporate locations, so we can show a lot more data in the FDD than most franchises as we have P&Ls that have been audited and are publishable.”
“Validation with existing owners is often the most important and most valuable part of the process for candidates,” Pantera said. “We connect them with current owners, who are really honest, and they have private conversations that we legally are not allowed to attend.”
For this portion, the team connects prospective owners with newer owners, seasoned veterans, single and multi-unit owners, and owners from different pockets of the country. This way, the prospective owner can learn about the opportunity from multiple perspectives.
“We also suggest prospective owners walk into a Sola and talk to the salon pros,” Pantera said. “Ask them if they’re happy and how long they’ve been there. Hear it from our customer, who is the salon pro, and they’ll tell you that they found their home.”
Sola franchisees do not necessarily need to live in the market where they open.
“The beauty of Sola is you don’t have to be in the market where you own,” Pantera said. “With the proper team, once the Sola is up and running, the franchisee will need to be in the market a lot less.”
For prospective owners seeking an established investment, Sola Salons has built a thorough resale playbook. With the Sola Resale Guide, existing owners can prepare their business for sale and a smooth transition.
“What this means for potential owners is we now have a good portfolio of owners within Sola looking to exit gracefully, and they’re organized,” Pantera said.
Pantera pointed out that, while the numbers in the FDD are not guaranteed, most franchisees find they do align with the actual experience.
“The FDD is just so detailed. We very rarely find that someone digs into the FDD and finds gaps or inconsistencies,” he said. “The only big swing you might find would be in rent, depending on which market you’re in and the size of your space.”
Proper due diligence, including conversations with both the corporate team and franchisees throughout the system, site visits and a thorough review of the FDD, sets the stage for a successful partnership. As Sola continues to grow, the team’s dedication to the mutual evaluation process, coupled with its powerful model, elevates the opportunity further.
“Doing due diligence is huge,” Pantera said. “Sola’s reputation stands for itself, but there’s nothing to hide, and we want to ensure each candidate feels entirely confident in their investment come Decision Day.”
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/sola-salons.
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