Company Description
Business structure, ownership, mission, and legal formation details.
1. Business Description
Legal Information
| Item | Details |
|---|---|
| Legal Name | Luxa Salon Suites, LLC |
| Legal Structure | Limited Liability Company (LLC) |
| State of Formation | Virginia |
| Business Type | Salon Suites Rental Facility |
| Industry | Beauty/Personal Services Real Estate |
| NAICS Codes | 531120 (Lessors of Nonresidential Buildings) or 812111 (Barber Shops)* |
*Primary classification as 531120 (property leasing) is recommended as the business model is real estate rental to independent contractors rather than direct provision of beauty services.
Business Summary
Luxa Salon Suites operates as a real estate rental business within the beauty services industry. The company leases fully-equipped, private salon suites to licensed beauty and wellness professionals who operate as independent businesses. Tenants are independent contractors responsible for their own licensing, insurance, client relationships, and business operations.
This "booth rental" or "salon suite" model has grown significantly over the past decade as beauty professionals increasingly prefer the independence and earning potential of operating their own business versus traditional commission-based salon employment.
2. Mission Statement
Mission: To provide independent beauty professionals with quality private workspaces and personalized support that enable them to build successful, thriving businesses while maintaining full control of their professional practice.
Vision: To be the preferred salon suite facility in the South Riding area, known for superior quality, competitive value, and genuine commitment to tenant success.
Core Values:
- Quality: Superior build quality and amenities at competitive prices
- Independence: Respect for tenant autonomy and business independence
- Support: Owner-operated concierge service with responsive assistance
- Community: Foster a professional environment where tenants can network and thrive
- Integrity: Transparent pricing, fair policies, and ethical business practices
3. Business Model
Concept
Luxa Salon Suites leases 18 individual, fully-equipped salon suites to independent beauty professionals. Each suite is a private, move-in-ready workspace containing the essential fixtures for the tenant's profession. Tenants operate their own businesses within these spaces, serving their own clients, setting their own prices and hours, and retaining 100% of their service revenue.
Revenue Model
Revenue is generated through weekly flat-rate rent collected from tenants. Key characteristics:
| Element | Specification |
|---|---|
| Rent Structure | Weekly flat rent (never commission-based) |
| Payment Method | Automated weekly ACH or credit card |
| Included in Rent | Utilities, WiFi, 24/7 access, common area use, laundry |
| Commission on Services | None (tenants keep 100% of earnings) |
The flat-rent model is essential for maintaining proper Independent Contractor (IC) classification under IRS guidelines. Taking a percentage of tenant revenue could reclassify tenants as employees, creating significant tax and liability exposure.
Suite Tiers and Pricing
| Suite Type | Size | Weekly Rate | Monthly Rate | Target Tenant |
|---|---|---|---|---|
| Standard | 100 sq ft | $325/week | $1,407/month | Entry-level independents, booth rental converts |
| Plus | 130 sq ft | $365/week | $1,581/month | Established professionals, growth-oriented |
| Large | 160 sq ft | $395/week | $1,710/month | Dual-station operators, small teams |
| Executive | 200 sq ft | $425/week | $1,840/month | Premium/specialty, high-volume professionals |
Blended Average Rate: $365/week ($1,581/month)
Lease Terms
| Term | Details |
|---|---|
| Minimum Initial Term | 6 months |
| After Initial Term | Month-to-month continuation |
| Notice Period | 30 days (after initial term) |
| Rent Escalation | 3% annually |
| Security Deposit | 2 weeks rent (refundable) |
| Move-In Cost | 2 weeks deposit + first week rent |
4. Location
Target Market Area
| Parameter | Value |
|---|---|
| Primary Location | South Riding, VA |
| Target Corridor | Route 50 / South Riding area |
| County | Loudoun County, Virginia |
| Trade Area Population | ~325,000 |
| Trade Area Median Income | $190,701 |
Location Rationale
Proven Demand: Primary research confirms that the closest competitors (Sola Salon Studios in Chantilly, 4 miles away, and Phenix Salon Suites in Ashburn at One Loudoun) are operating at high occupancy. South Riding and Centreville together represent over 106,000 residents with zero salon suites, creating a significant geographic gap.
Demographics: The South Riding trade area features exceptional demographics for a salon suites business:
- Median household income of $190,701 (118% above the Virginia state median)
- Population of ~34,200 in South Riding proper, ~325,000 in extended trade area
- Strong professional employment base (proximity to Data Center Alley / Dulles Technology Corridor, Leesburg)
- Growing population with 1.7% annual growth
Limited Competition: No salon suite operator currently serves South Riding. The closest competitor (Sola Salon Studios in Chantilly, 48 suites) is 4 miles away. The first South Riding facility will capture location-sensitive demand currently underserved by the market.
5. Facility Overview
Facility Parameters
| Parameter | Target |
|---|---|
| Total Suite Count | 18 suites |
| Gross Square Footage | 3,000-3,500 sq ft |
| Net Suite Area | ~2,330 sq ft |
| Common Area | ~700 sq ft (20% of gross) |
| Net-to-Gross Efficiency | ~67% |
Suite Mix
| Suite Type | Count | % of Facility | Square Feet | Monthly Revenue (100% occ) |
|---|---|---|---|---|
| Standard | 8 | 44% | 800 sq ft | $9,120 |
| Plus | 5 | 28% | 650 sq ft | $6,300 |
| Large | 3 | 17% | 480 sq ft | $4,140 |
| Executive | 2 | 11% | 400 sq ft | $3,080 |
| Total | 18 | 100% | 2,330 sq ft | $22,640 |
Common Areas (~700 sq ft)
| Area | Function | Approximate Size |
|---|---|---|
| Reception/Lobby | Client greeting, directory | 100-150 sq ft |
| Break Room | Tenant amenity (microwave, refrigerator, seating) | 150-200 sq ft |
| Laundry Room | Washer/dryer for tenant use | 50-75 sq ft |
| Restrooms | ADA-compliant shared facilities | 150-200 sq ft |
| Hallways/Circulation | Suite access, egress | 150-200 sq ft |
Suite Features (Included)
Each suite includes:
- Private, lockable entry door
- 24/7 electronic access
- Individual suite lighting (CRI 90+, 4000-5000K)
- Individual HVAC controls
- Adequate electrical (2x 20A dedicated circuits)
- Shampoo bowl plumbing connection (most suites)
- WiFi connectivity
- Proper ventilation for chemical services
Building Standards
| Standard | Specification |
|---|---|
| Soundproofing | STC 48-52 (exceeds franchise standard of STC 36-40) |
| Lighting | CRI 90+, 50 footcandles at workstation |
| Electrical | 2x 20A dedicated circuits per suite |
| Parking | 4-5 spaces per 1,000 sq ft minimum |
6. Ownership & Management
Ownership Structure
Luxa Salon Suites, LLC is a single-member Limited Liability Company owned and operated by the founder. The LLC structure provides:
- Personal liability protection
- Pass-through taxation (avoiding double taxation)
- Operational flexibility
- Simpler compliance requirements than corporate structures
Management Model
Owner-Operated (Years 1-3)
The facility will be owner-operated for the initial three years. This approach provides:
- Cost Savings: Eliminates $40,000-$50,000/year management payroll during startup
- Service Quality: Direct owner involvement ensures responsive, personalized service
- Competitive Differentiation: Exceeds Sola's self-service approach with personalized concierge service
- Business Learning: Allows owner to deeply understand operations before potential delegation
Owner Responsibilities:
- Daily facility presence during business hours
- Tenant onboarding and relationship management
- Maintenance coordination and vendor management
- Marketing and lease-up activities
- Financial management and reporting
Management Transition Criteria:
The business model supports hiring a facility manager when:
- Sustained occupancy exceeds 93%
- Annual gross profit exceeds $75,000
- Owner elects to reduce day-to-day involvement
At target 85% occupancy, cash flow after debt service (~$20,000/year) is insufficient to support a hired manager without supplemental income from the owner.
7. Business Stage
Current Status
| Status Item | Details |
|---|---|
| Business Stage | Pre-revenue startup |
| Entity Status | LLC formation pending |
| Site Selection | Framework complete, site identification pending |
| Financing | SBA loan application in preparation |
| Build-Out | Planning complete, awaiting site selection |
| Pre-Leasing | Strategy developed, execution pending site |
Development Timeline
| Phase | Estimated Duration | Key Activities |
|---|---|---|
| SBA Loan Application | 60-90 days | Document preparation, lender submission, underwriting |
| Site Selection | 30-60 days | Property identification, evaluation, LOI, lease negotiation |
| Build-Out | 13-22 weeks (18 baseline) | Permits, construction, FF&E installation |
| Pre-Leasing | Concurrent with build-out | Marketing, tours, lease signing |
| Opening | 6-8 months from site identification | Facility operational, tenants move in |
Opening Targets
| Metric | Target |
|---|---|
| Occupancy at Opening | 35% (6-7 suites pre-leased) |
| Month 3 Occupancy | 65% (12 suites) |
| Month 9 Occupancy | 85% stabilized (15+ suites) |
| Time to Monthly Break-Even | Month 6 |
| Time to Cumulative Break-Even | Month 11 |
Summary
Luxa Salon Suites is a well-planned independent salon suites business positioned to capture validated unmet demand in the South Riding, Virginia market. The 18-suite facility will offer quality private workspaces to independent beauty professionals at competitive market rates, differentiating through superior build quality, owner-operated concierge service, and a prime South Riding location. The business model is conservative, with break-even at 62% occupancy, targeting 85% stabilized occupancy within 9 months of opening.
Company Description prepared as part of SBA-bankable business plan. Document: Phase 14-01 Task 2 Date: January 2026
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