Since its inception in 2004, Sola Salon Studios has grown to more than 685 locations throughout the United States and Canada with 20,000-plus independent beauty professionals who rent salon suites.
Salon Freedom Holdings acquired nine Sola Salon Studios in and around Houston that were owned and operated by BCCD Holdings. Financial terms of the deal were not disclosed.
The acquisition increases Salon Freedom’s portfolio of Sola Salons to 60 locations, making it the brand’s largest and fastest growing franchise operator, according to the company, which also owns Sola locations in Pennsylvania, New Jersey and Tennessee. The nine units purchased in the Texas deal are located in the southern Houston market, including locations in central Houston, Katy, Sugar Land, Pasadena and Clear Lake.
Todd Recknagel, chair of Salon Freedom Holdings
“The Texas market opens up a new market for us where we see a lot of room for growth,” said Todd Recknagel, chair of Salon Freedom.
Salon Freedom formed in 2008 specifically to develop franchised Sola Salon locations. The company announced a major investment in March 2022 by Three20 Capital Group, Geneva Glen Capital and Stonehenge Partners. Three20 Capital is a private equity firm led by franchise veterans Recknagel and Kristi Mailloux. Along with Sola, other brands the investment firm has partnered with include Massage Envy, Office Pride, Take 5 Oil Change, Mr. Handyman and Molly Maid.
Last year, Three20 Capital partnered with two other private equity firms in a recapitalization of Eleven Eleven Holdings, at the time the second largest Sola Salon franchisee. Recknagel and Mailloux are also operating partners in PCRK Group, the largest Massage Envy multi-unit franchisee in the country with more than 90 units.
Since its inception in 2004, Sola has grown to more than 685 locations throughout the United States and Canada with 20,000-plus independent beauty professionals who rent salon suites. In 2022, private equity firm TSG Consumer Partners acquired Radiance Holdings, the parent company of Sola Salons and Woodhouse Spa.
“We’re selling 700 to 800 Sola Salon seats a year now, which makes us Sola’s fastest growing franchisee for the last two to three years,” Recknagel said.
Asked how the Texas acquisition unfolded, Recknagel said BCCD Holdings, which included four different shareholders who had owned and operated their group of locations for about a dozen years, made the initial contact.
“They were all very respected businessmen in Houston with other careers and they did a great job with the salons. They have other careers and just thought the timing was right for an exit,” said Recknagle, adding the nine studios are all strong performers, posting annual sales revenues of about 5 percent over the brand’s unit average.
Franchised Sola locations had average sales of $428,389 in 2022, according to the brand’s most recent franchise disclosure document.
Said Jordan Levine, chief operating officer for Sola Salon: “Salon Freedom has been one of Sola’s fastest growing franchises. It’s gratifying to see them accelerate that growth via acquisitions and leverage their high-performing platform into new markets.”