Phenix Salon Suites
Phenix Salon Suites operates luxury salon suites where independent professionals can lease space to run their businesses. Known for developing fully-equipped salons, it offers a range of investment options from $922,528 to over $2 million, focusing on beauty and wellness services in the franchising industry.
Phenix Salon Suites franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single PHENIX SALON SUITES® franchised business (Standard Format) ranges from $922,528 to $2,274,038. [p.1] This includes $71,050 to $93,350 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of business. For a Standard (or Bistro) Business, it is $52,500, while for a Parlor Business, it is $35,000 [p.96]. This fee is non-refundable upon receipt [p.184] and covers administrative and other expenses incurred by the franchisor in granting the franchise [p.96].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is $0.34 per square foot of leased location per month, increasing to $0.35 in May 2025 [p.184]. Additionally, you must make minimum royalty or advertising fund payments regardless of sales levels, and failure to pay may result in termination of your franchise [p.4]. Advertising costs are expensed when incurred [p.183].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is typically for 10 years [p.181]. You have the option to renew this agreement for one successive renewal term of ten years if you comply with certain conditions, including executing the then-current form of franchise agreement which may differ materially from this Agreement [p.95].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can generally not transfer your franchise ownership without the franchisor's approval. The franchisor may refuse the transfer if there is good cause, such as the proposed transferee failing to meet qualifications, being a competitor, or refusing to comply with obligations [p.5]. Additionally, a transfer fee equal to 50% of the current initial franchise fee must be paid in certain cases, though this does not apply if the transfer is to a family member of the franchisor or an entity owned by them [p.159].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time frame, which cannot exceed 30 days [p.225]. Additionally, this is subject to state laws, including Minnesota's statutes that protect franchisees' rights [p.222].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You receive a protected territory, not an exclusive one [p.49, p.47]. This protected territory is based on the estimated population within a three-mile radius from the approved location and depends on the design type of your Phenix Salon Suites® business [p.47, p.93].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training consisting of two days at their facility and one and a half days at the franchisee's location before opening. Additional seminars or training programs may be offered, though fees might apply. Ongoing, the franchisor may require attendance at meetings for the franchisees, with related expenses borne by the franchisee. [p.119, p.42]
How many franchised outlets are there, and how many have closed or been terminated?
There were 418 U.S. based franchised and company-owned outlets as of December 31, 2025 [p.64]. Of these, 31 franchised outlets had not been open for at least 18 months and were excluded from the count of eligible franchised locations [p.64]. This means that out of the 418 outlets, 31 have effectively closed or been terminated in terms of being counted as eligible locations.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it, and this information must be included in the disclosure document [p.64]. However, the franchisor does not make any representations about future financial performance of franchisees other than providing actual records of an existing business being purchased [p.70].
What am I restricted to selling, and where must I buy supplies?
You are generally not restricted to selling specific items, but the franchise agreement may prohibit operating a similar business during the term of the franchise. For supplies, you typically must buy or lease certain items from the franchisor or designated suppliers as identified in the Operations Manual or other written communications [p.32]. This includes goods and services that are necessary to maintain the quality of PHENIX SALON SUITES® Business operations and system reputation [p.31].