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FranchiseVerdict

How Much Does a Southern Solar Franchise Cost?

Data from the 2022 Franchise Disclosure Document

Investment Summary

Total Investment

$170K – $240K

Franchise Fee

$65K

Royalty

(a) 5.5% of Gross Sales for all sales up to $4,000,000; (b) 5% from $4,000,001 to $8,000,000; (c) 4.5% from $8,000,001 to $12,000,000; and (d) 4% for sales from $12,000,001 and beyond each calendar year.

Ad Fund

0.5%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Southern Solar is $65K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Southern Solar franchise requires a total investment of $170K – $240K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $75K to $85K.

Ongoing Costs

Beyond the initial investment, Southern Solar franchisees pay ongoing fees. The royalty structure is: (a) 5.5% of Gross Sales for all sales up to $4,000,000; (b) 5% from $4,000,001 to $8,000,000; (c) 4.5% from $8,000,001 to $12,000,000; and (d) 4% for sales from $12,000,001 and beyond each calendar year.. The advertising or brand fund contribution is 0.5% of gross sales. There is also a technology fee of $0.

Net Worth & Liquid Capital Requirements

Southern Solar requires working capital of $75K – $85K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Southern Solar does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

Next Steps

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