Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$108K - $244K
- Units as of 2021
3 50.0% over 3 years
Here’s what you need to know if you’re interested in opening a Solatube Home franchise.
Solatube Home is a tubular skylight and ventilation company launched in 1987.
Solatube Home has installed thousands of ventilation systems. It specializes in tubular skylights, ventilation systems, and replacement skylights. Their certified installation consultants possess a certificate in all Solatube Home products and are experts in them. They are also factory-trained. In addition, all the company’s stores are insured and licensed.
Solatube Home began franchising in 2020 and is seeking to add franchisees to the brand. They may offer customers individualized appointments, free in-home consultations, and installation services on the same day.
Why You May Want to Start a Solatube Home Franchise
Solatube Home believes it owns a unique daylighting system and has many years of experience on the market. These may be factors that will give the franchisee a good position when starting the business.
Solatube Home franchisees don't need to have any experience in the field, but they should be able to lead their team of employees and provide exceptional customer service. Solatube Home offers their new franchisees exclusive territories, which could offer another advantage to opening a franchise.
Solatube Home provides new franchises with:
Several dozen hours of on-the-job training.
More than a few hours of classroom training.
Online support, lease negotiation, proprietary software, meetings and conventions, franchisee intranet platform.
Extended marketing support that includes national and social media, website development, and regional advertising.
What Might Make a Solatube Home Franchise a Good Choice?
To be part of the Solatube Home team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.
Solatube Home has partnered with third-party financial lenders that may offer help covering the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll if you meet their qualifications.
How To Open a Solatube Home Franchise
As you decide if opening a Solatube Home franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Solatube Home franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth. You may also want to look at your potential employee market to make sure you will have the most qualified hires available to you.
Before making any financial commitment or signing an agreement with Solatube Home, it is crucial that you perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Solatube Home franchising team questions.
It may be a good idea to speak with an attorney or financial advisor to ensure that you have the necessary financial resources to own and operate a Solatube Home franchise.
About Solatube Home
- Franchising Since
- 2020 (2 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 3 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Solatube Home franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $10,000 - $30,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $108,494 - $244,458
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $200,000 - $400,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $50,000 - $100,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off first-unit franchise fee; 10% off franchise fee for additional units
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Solatube Home has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 40 hours
- Classroom Training
- 32 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Are you eager to see what else is out there? Browse more franchises that are similar to Solatube Home.
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