Phenix Salon Suites

The standard franchise fee is $52,500 for new franchisees, reduced to $40,500 for existing Phenix franchisees and $35,000 for qualifying veterans (when no broker introduced the deal). For a Development Agreement covering 6 locations, the fee for the first two units is $93,000 combined.

Beyond the franchise fee, Phenix charges several mandatory upfront fees that are easy to overlook: a $3,000 Site Evaluation Fee per location, a $6,500 Construction Management Fee (paid in two installments), and $850 for the first three months of the Gina's Platform app setup. Required attendance at the Annual Meeting of Franchisees adds $1,699.

The total investment range of $721K to $2.4M is driven almost entirely by leasehold improvements, which range from $520K to $1.93M. This is the cost of converting raw retail or commercial space into individual salon suites — plumbing, electrical, HVAC, and buildout for 20–50+ suites. Furniture, fixtures, and equipment add $57K–$134K; exterior signage $5K–$16K. The FDD notes that landlord tenant improvement allowances typically cover $0–$1,005,000, which is why the adjusted investment range ($721K–$1.42M) differs from the gross range.

Royalties work differently from standard percentage-of-revenue models. Phenix charges $0.34 per square foot of leased space per month, increasing up to 3% annually at franchisor discretion. The National Brand Fee adds $0.06/sq ft/month. A 5,000 sq ft location would owe approximately $2,000/month in royalties and $350/month in brand fees — regardless of your occupancy rate. That's a fixed cost, which is financially painful during lease-up periods when suites are partially vacant.

Additional ongoing costs: $1,000/month in required local advertising until 90% suite occupancy is reached, $200/month for Gina's Platform app, and $50–$150/month for the Suitest News publication. Renewal fee is $15,000.

Phenix Salon Suites did not disclose financial performance representations (Item 19) in this FDD filing. The source data for Items 19 and 20 was not properly extracted from the PDF, so unit counts and revenue data are unavailable for this profile.

The salon suites business model generates revenue from suite rents paid by independent stylists, colorists, estheticians, and other beauty professionals. Revenue depends almost entirely on two variables: your total number of leasable suites and your occupancy rate. Industry benchmarks for salon suite concepts typically target 85–95% occupancy at stabilized locations, with individual suite rents ranging from $200–$600+/week depending on market.

For context, the closest comparable in this database is Sola Salon Studios, which reports average gross revenue of $442K across 625 mature locations. Both concepts operate the same fundamental model — franchisee as landlord — though suite counts, lease structures, and market positioning differ.

Without Phenix-specific Item 19 data, any revenue projection requires building your own model using local comp data on suite rental rates, comparable occupancy rates in your market, and your specific facility size. Do not rely on verbal representations from the franchisor or existing franchisees as a substitute for disclosed FDD data. Request actual financial statements from existing Phenix franchisees as part of your validation process.

Item 20 unit count data was not captured in this FDD extraction. The current system size and growth trajectory for Phenix Salon Suites cannot be reported from this data source.

Phenix operates in the salon suites category alongside Sola Salon Studios (729 units), Suite Management Franchising (Salon & Spa Galleria), and MY SALON Suite. The category has seen meaningful growth over the past decade as independent beauty professionals have increasingly preferred suite ownership over commission-based employment in traditional salons. However, the sector has also matured, and new market development is increasingly competing with established operators.

Any buyer should request current unit count figures directly from Phenix Salon Suites as part of the franchise discovery process.

The per-square-foot royalty structure is the most important financial dynamic to understand. Unlike percentage-of-revenue royalties, Phenix's $0.34/sq ft/month royalty is a fixed cost that does not scale with your performance. If you're at 60% occupancy in your first year and paying royalties on the full square footage of your build, you're absorbing that cost with no revenue relief. Model your break-even occupancy rate carefully — typically a salon suites location needs 70–75% occupancy just to cover rent, royalties, and operating overhead.

The $0 to $1.005M range for landlord tenant improvement (TI) allowances is critical to your actual out-of-pocket cost. In strong retail markets, landlords compete for quality tenants with generous TI packages. In weaker markets, you may receive little or no TI support, pushing your actual investment toward the $2.4M ceiling. Your real estate negotiating leverage before signing is the most important variable in your total cost equation.

The transfer fee is 50% of the then-current standard franchise fee (approximately $26,250 today) — above average for the category. If you need to exit the business before the end of your term, this is a real cost.

The absence of Item 19 data makes it impossible to benchmark typical revenue or occupancy rates from the FDD alone. A credible due diligence process should include direct conversations with at least 10 existing Phenix franchisees, asking specifically about occupancy rates, time to 80%+ occupancy, and actual monthly revenue versus original projections.