Describe your organization – how long has it been in operation? when did you start franchising? how many franchisees do you currently have?
Radiance Holdings represents a collection of premier brands in the beauty, wellness, and self-care sector. Our flagship brand is Sola Salons, the world’s largest and fastest-growing studio suites concept for independent beauty professionals which has been in operation since 2004 and began franchising in 2005. During the pandemic, we acquired WoodHouse Spas, the largest premium day spa brand in the U.S. which was founded in 2001 and began franchising in 2003.
Radiance Holdings expanded Sola Salons internationally to Canada in 2022, with 9 new signings in the last 12 months. The brand signed 72 franchise agreements nationwide last year and ended is currently at 655 Sola Salons location. The rapid yet sustained expansion is one of the reasons why Sola Salons is a leader in recession-resilient franchises. Also contributing to Sola Salons’ corporate success is our 90% occupancy rate average across all locations, with a low 20% turnover rate, compared to the 80-90% at quick-cut places and an impressive roster of 20,000 independent beauty professionals. Sola Salons forecasts it will open 60-70 new locations in 2023.
Since being acquired by Radiance Holdings in 2020, Woodhouse Spa has opened 10 additional locations across the United States and ended 2022 with five additional locations added. With sales growing 19% year over year, Woodhouse Spa has 82 locations across 22 states including Texas, Colorado, California, New York, Ohio and Florida. Woodhouse Spa has proven that its concept resonates with consumers around the U.S. and has driven significant economic growth and job opportunities in the luxury self-care industry.
What is your main product/service?
Sola is proud to offer 20,000+ independent beauty professionals the freedom and benefits of salon ownership without the risk and overhead of opening a traditional salon. Its innovative salon model empowers hairdressers, estheticians, nail techs, massage therapists and other like-minded professionals to take control of their lives and their careers. Sola provides beauty professionals with beautiful, fully-equipped salon studios alongside the support and tools they need to launch their salon business in no time.
Woodhouse Spa has offered guests a variety of luxury treatments that are fully customized to meet their guests’ unique needs in a calming environment that is rich with warm earth tones and textures, sounds of nature, soothing aromatherapy for skin treatments, massage therapies, facials and other exquisite services, such as waxing and nails. Every treatment, detail, space and feature has been carefully crafted by the Woodhouse masters of mood care.
What type of person would ‘fit’ your franchisee profile?
There are a few key traits that we look for in potential franchisees. We look for individuals that have capital and business acumen. A lot of our franchisees have a background in franchising which gives them an advantage when opening their own franchise. We also look for people who are interested in creating a culture, not just the financial profits that come with opening a franchise. On the Sola side, the franchisees need to have a sense of care for their independent beauty professionals and need to strive to help each beauty professional with their individual careers. We also look for passion… Opening a Sola or a Woodhouse Spa is more than just an investment, it becomes a passion.
Where are your current locations/territories? Where are locations/territories available?
Sola Salons has 655 locations across the United States and Canada while Woodhouse Spas has 82 locations across the United States.
Why is there a need for this product/service? Why are you different to your competition?
There will always be a need for beauty and wellness services amongst consumers, especially with remote work positions continuing to stay relevant, and current research shows no signs of the industry slowing down. Over the past few years, we have all had to look at ourselves on Zoom multiple times a day, making us hyperaware of our appearance. At both Sola Salons and Woodhouse Spa, we offer customized, individual experiences for our guests. And for our independent beauty professionals at Sola, we offer the unique opportunity to have ownership over every aspect of their business, from salon design to prices and hours.
On a corporate level, TSG Consumer Partners, a leading private equity firm, acquired a majority stake in Radiance Holdings at the end of 2022. The acquisition allows Radiance to implement aggressive growth initiatives for Sola and Woodhouse over the next three to five years, with further franchise development and proliferation in the U.S. and Canadian markets.
How do you look after your franchisees? e.g. what support/training/backup do you offer?
At Radiance Holdings, our mission to empower franchise owners and beauty professionals with unrivaled opportunities, mentorship, and education continues to propel our brands to new heights. As part of these efforts, Radiance Holdings hosts annual summits for each of its brands where franchise owners and corporate employees from across the country come together to participate in breakout sessions; discuss industry trends, and receive recruiting and retention education; among many other summit seminars.
In addition to annual brand summits, Radiance Holdings provides additional resources and conferences throughout the year such as Sola’s annual national education event, Sola Sessions, where the brand’s independent beauty professionals are invited to continue their industry education via in-person workshops highlighting business skills, new aesthetic services and styling insight, and other industry development courses. Sola Salons also offers an ambassador program called Faces of Sola, where individuals seeking a more active, corporate role with Sola Salons can apply to teach additional styling and services best practices to their fellow beauty professionals.
Plans for new systems/concepts in 2023
Our growth strategy for this year is to grow horizontally and vertically. Vertically through franchise sales and development. With Sola, we are at 655 locations and international expansion starting with Canada is a huge focus for us. Horizontally, our ambition is to grow through acquisition and own market-leading brands across all modalities of beauty ie waxing, laser, beauty bar, medspas and more.
Where do you see the Franchise in the next five years?
The rapid, yet sustained growth Radiance Holdings has achieved this past year from Sola Salons and Woodhouse Spa is a true testament to our brand continuing to listen to its consumers. With current research projecting salon suites are forecasted to grow ~19-20% from 2021-2026, and Sola Salons’ independent professional model growing by 20% annually, the business will only continue to grow over the next five years.
In the coming years, Radiance Holdings will continue to seek strategic growth opportunities to add to its growing roster by leveraging its consumer focus and knowledge in both the beauty and franchising industries. We have plans to implement aggressive growth initiatives with Sola Salons to further expand its Canadian presence and will position Woodhouse Spa into white space markets. The brands will continue to strategically target key markets throughout the U.S. and Canada for franchise development.
What is your advice for those exploring franchise opportunities?
It’s an old-school saying, but my advice would be to follow your bliss. The greatest progress in life comes from taking risks. I started my career in franchising by leaving a solid career and taking the leap to become a multi-unit franchisee in boutique fitness. Franchising gave me a pathway to do something I never could have done on my own. If you’re dreaming of independence and breaking the economic glass ceiling, franchising might be the pathway for you, too. So make the leap!
How do you motivate your franchisees?
Motivation starts with engagement. Franchisees are the reason we exist, so they need to be included in decisions and have access to information. Job one is establishing a true Franchise Advisory Board that works with the team to set annual priorities and drive projects. We also use working groups that engage franchisees beyond the FAB to provide insight on projects and key decisions. And we pride ourselves on strong communication. That’s never easy in franchising, but we do our best to keep everyone engaged with weekly updates, monthly webinars, regular in-field Regional meetings, and ongoing support from our Franchise Business Coaches. Everything we do is designed to provide engagement and transparency, and that’s reflected in consistently high franchisee satisfaction scores. Our teams take great pride in these results.