Phenix Salon Suites Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$52,500
Investment required
$710,000 - $1,198,000
Royalty fee
$0.33 per square foot

Phenix Salon Suites: Leading the Way in Empowering Beauty Professionals

Phenix Salon Suites stands out as a leading franchise that has revolutionized the beauty and salon industry with an innovative business model tailored for salon professionals. Established in 2007 and headquartered in Encino, California, Phenix Salon Suites has been instrumental in offering franchising opportunities that empower entrepreneurs.

The franchise is renowned for its dedication to supporting independent beauty and salon experts. Phenix Salon Suites provides individual salon suite rentals to a variety of professionals, including hairstylists, barbers, nail technicians, estheticians, and others in the beauty sector.

What distinguishes Phenix Salon Suites from conventional salon environments is its emphasis on granting professionals complete creative freedom and autonomy within a shared, upscale salon setting. The franchise blends private, customizable salon suites with the collaborative spirit of a supportive salon community, creating a unique and empowering experience for its members.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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

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Number of units

2023
Franchised units

275

302

334

Company-owned units

5

6

6

Total units

280

308

340

Franchise Disclosure Document

Training 

Initial Training Program

Timing: The initial training program generally commences around 30 days or more prior to the business opening. The exact dates are agreed upon by both the franchisor and the franchisee.

Location and Duration: The training includes two days at the franchisor’s facility in Carlsbad, CA, followed by one and a half days at the franchisee’s location during the opening week.

Content: This program is intended for the franchisee (or their managing owner) and up to three manager-level employees, focusing on the successful operation of a Phenix Salon Suites business.

Additional and Ongoing Training

Continuing Advisory Assistance: The franchisor provides ongoing advice and support in business operations, advertising, and promotion, including refresher training programs.

Additional Seminars or Programs: The franchisor may offer additional seminars or training sessions that franchisees can attend, potentially for a reasonable fee.

Custom Requests: Franchisees can request extra training beyond the standard offerings, which will be provided by the franchisor at the franchisee’s expense.

Territory Protection

The Phenix Salon franchise agreement includes provisions for territory protection. Franchisees are granted a protected territory with a one-mile radius, along with the right of first refusal for new locations within a two and one-half mile radius. However, the franchisor reserves the right to establish different types of businesses within these areas. Exclusive rights are limited to the specified territories mentioned.

This structured approach ensures that franchisees have a degree of market security, fostering a stable environment to grow their business. It also balances the franchisor’s ability to expand and diversify, allowing for potential new opportunities and growth within the larger market framework.

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