Southern Solar Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Southern Solar is a home services franchise that designs, installs, and services residential and commercial solar energy systems. Franchisees run local operations, managing sales, site assessments, and installation.
FranchiseVerdict summary · 2026
A Southern Solar franchise requires a total initial investment of $170K – $240K, including a $65K – $95K franchise fee. Per the 2022 FDD, average unit revenue was $3.9M[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $170K – $240K
- 70th pct Home Services
- Avg gross sales
- $3.9M
- Company-owned onlyn=133rd pct Home Services
- Royalty
- N/A
- Units
- 1
- 2nd pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $170K – $240K including a $65K franchise fee.
- RETURNSAverage unit revenue of $3.9M/year (company-owned outlets only - not franchisee performance).
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- FLAGRevenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Southern Solar Franchise Systems, LLC
- CEO title
- Chief Executive Officer
- Glenn Lynch
- Incorporated in
- Texas
- HQ
- 5000 Overton Plaza, Suite 200, Fort Worth, Texas 76109
- Auditor
- Whitley Penn LLP
- Audited financials
Overview
About
- CEO
- Glenn Lynch
- Headquarters
- TX
- Founded
- 2022
- FDD year
- 2022
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 9% below the typical home services franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $65K | $95K | |
| Rent Deposits | $2K | $3K | |
| Utility Deposits | $300 | $600 | |
| Leasehold Improvements | $0 | $3K | |
| Insurance Deposits | $3K | $5K | |
| Travel and Living Expenses While in Training | $3K | $5K | |
| Opening Package | $12K | $19K | |
| Vehicles | $4K | $5K | |
| Licenses, Certificates and Permits | $0 | $4K | |
| Additional Signage, Equipment and Supplies | $500 | $2K | |
| Furniture, Fixtures & Equipment | $4K | $8K | |
| Professional Fees | $3K | $5K | |
| Dues and Subscriptions | $0 | $1K | |
| Additional Funds (3 months) | $75K | $85K | |
| Total initial investment | $170K | $240K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $170K – $240K
- Bottom third — review vs category
- Liquid capital req'd
- $75K – $85K
- Bottom third — review vs category
- Franchise fee
- $65K – $95K
- Bottom third — review vs category
- Royalty
- (a) 5.5% of Gross Sales for all sales up to $4,000,000; (…
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $0 |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 214% above the home services norm.
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
Source: FDD 2022 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$486K
12.5% margin
Unlevered ROIC
171%
EBITDA / total invested capital
Payback
7 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Southern Solar unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
171%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Southern Solar units return on equity?
Equity IRR · 5-yr
28.7%
3.53× MOIC
Year-1 DSCR
2.82×
EBITDA ÷ debt service
Equity required
$10.0M
on $21.4M purchase
Total debt
$11.4M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
- Avg gross sales
- $3.9M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Affiliate
- Sample size
- 1
- vs category median 32 · small
- Reported figure
- $3.9M
- A single outlet — not a range
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Revenue is 19.0x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $3.9M/year in gross sales. Revenue-to-investment ratio: 19.0x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.5% — below the Home Services average of 8.9%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 1 unit — treat as directional only.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How Southern Solar Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Pre-opening residential solar franchisor (franchising since 2022) with 1 company-owned unit and zero franchised. Net worth positive but modest at $427,488; no litigation, bankruptcy, or going-concern doubt. Limited operating history.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Whitley Penn LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 verdict
- 01MINORis_pre_opening=true, 0 franchised units
- 02MINORnet worth $427,488
- 03MINORno litigation/bankruptcy
- 04MEDItem 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | Zip codes |
| Protected territory | Yes |
| Territory population | 160,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 100 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Southern Solar · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Southern Solar franchise?
The total investment to open a Southern Solar franchise ranges from $170K – $240K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Southern Solar franchise owners earn?
According to Item 19 of the Southern Solar FDD, the average gross sales per unit is $3.9M. Important context: Company-owned outlets only - not franchisee performance; Based on a single reporting unit - not a system average. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Southern Solar FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Southern Solar FDD and qualifies whose outlets they describe.
What is Southern Solar's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Southern Solar (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Southern Solar franchise locations are there?
As of their most recent FDD filing, Southern Solar has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Southern Solar a good franchise to buy?
FranchiseVerdict rates Southern Solar as a C-grade franchise with a verdict score of 45 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Southern Solar, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.