Phenix Salon Suites Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$710,000

-

$1,198,000

LOCATIONS

340

Jennifer

Updated

April 11, 2024

Is

Phenix Salon Suites

a franchise?

Yes,
Phenix Salon Suites
currently
accepts
franchise
applications

Phenix Salon Suites is a prominent franchise that has redefined the beauty and salon industry by offering salon professionals a unique and empowering business model. Founded in 2007, the franchise has its headquarters in Encino, California.

Phenix Salon Suites has been at the forefront of providing franchising opportunities, enabling entrepreneurs to be part of a brand known for its commitment to supporting independent salon and beauty professionals. At Phenix Salon Suites, the franchise provides individual salon suite rentals to hairstylists, barbers, nail technicians, estheticians, and other beauty professionals.

What sets Phenix Salon Suites apart from traditional salon environments is its focus on giving professionals full creative control and independence over their businesses within the framework of a shared, luxurious salon setting. It offers a unique combination of private, customizable salon suites and the camaraderie of a supportive salon community.

How many

Phenix Salon Suites

franchises

are there?

In 2022, there were
340
outlets in
the United
States, of which
334
are franchises, and
6
are corporate-owned.

What are the

Phenix Salon Suites

franchise

fees?

Royalty fee

$0.33 per square foot

Advertising fee

$0.06 per square foot

Initial Franchise Fee

The initial franchise fee is generally $49,500, payable in a lump sum upon signing the Franchise Agreement.

Royalty Fee

The continuing monthly royalty fee is Thirty Cents ($0.30) per square foot, based on the number of square feet leased at the Approved Location. This fee is subject to an annual increase of up to 3%.

National Brand Fee

A monthly national brand fee of Six Cents ($0.06) per square foot is charged, also subject to an annual increase of up to 3%.

Advertising Fee

There are local advertising requirements, with initial marketing expenses between $10,000 and $35,000, and ongoing monthly expenses of at least $1,000 or 1% of Gross Sales.

Construction Management Fee

A fee of $6,500 is payable for construction management.

Transfer Fees

If a franchise is transferred, the transferee must pay an initial franchise fee equal to 50% of the then-current standard initial franchise fee.

Lease/Rent Fee

The estimated initial investment includes real estate/rent for the first 3 months, ranging from $10,000 to $95,000.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Phenix Salon Suites

franchise?

It costs between
$710,000
and
$1,198,000
to start a
Phenix Salon Suites
franchise.
Type of Expenditure Amount
Initial Franchise Fee $52,500
Site Evaluation Fee $3,000 to $3,000
Real Estate/Rent - first 3 months' rent plus security deposit $29,525 to $78,412
Architectural Plans $7,863 to $13,413
Mechanical & Engineering Plans $9,775 to $16,675
Architectural Plan Review Fee $0 to $3,500
Construction Management Fee $6,500 to $6,500
Utility Deposits $2,500 to $5,000
Leasehold Improvements $722,500 to $1,232,500
Initial Marketing Expenses $10,000 to $15,000
Computer $1,000 to $2,000
Phenix TV $2,169 to $2,169
Furniture, Fixtures, Equipment, Interior Signs and Furnishings $75,296 to $116,783
Exterior Signs $6,900 to $13,800
Annual Meeting of Franchisees $500 to $1,000
Training Expenses (out-of-pocket costs for two people) $1,500 to $2,500
Insurance – first 3 months $1,500 to $3,970
Professional Fees $0 to $10,000
Licenses, Permits and Business Formation $5,000 to $15,000
Gina’s Platform (incl. first 3 mos of service) $850 to $850
Additional Funds – first 3 months $22,881 to $32,385
Total Estimated Initial Investment $961,759 to $1,626,956
Landlord Contributions ($251,292) to ($428,675)
Adjusted Estimated Initial Investment $710,467 to $1,198,282

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Phenix Salon Suites

provide

training

to its

franchisees?

Yes,
Phenix Salon Suites
provides
training

The franchisor provides itsfranchiseeswit a comprehensive training program:

Initial Training Program

  • Timing: The initial training program typically starts approximately 30 days or more before the opening of the business. The exact days are mutually selected by the franchisor and franchisee.
  • Location and Duration: The training consists of two days at the franchisor’s training facility in Carlsbad, CA, and one and one-half days of training at the franchisee’s location during the opening week.
  • Content: This program is designed for the franchisee (or its managing owner) and up to three manager-level employees, focusing on the operation of a Phenix Salon Suites business.

Additional and Ongoing Training

  • Continuing Advisory Assistance: The franchisor may offer continuing advice and assistance in operation, advertising, and promotion of the business, including refresher training programs ..
  • Additional Seminars or Programs: The franchisor may conduct additional seminars or training programs, which franchisees can attend. A reasonable fee may be charged for these programs.
  • Custom Requests: Franchisees can request additional training beyond what is specified, provided by the franchisor at the franchisee’s expense..

Does

Phenix Salon Suites

provides

territory

protection?

The Phenix Salon franchise agreement offers territory protection, including a one-mile radius as a protected territory and a right of first refusal for new locations within a two and one-half mile radius. However, the franchisor retains rights to establish different businesses in these areas. Exclusive rights are not granted beyond these specified territories.

Can a

Phenix Salon Suites

franchise

be run as

a passive

investment?

The Phenix Salon franchise agreement does not explicitly support a purely passive investment model.The franchise agreement states that the franchisee (or, if the franchisee is an entity, their managing owner) must act as the general manager of the business with responsibility for direct, on-premises supervision.

The franchisee is required to devote their full time and efforts to the management and supervision of the business.

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