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Phenix Salon Suites

Phenix Salon Suites Franchising, LLC

Company Information

662 Encinitas Blvd., Suite 248, Encinitas, CA 92024

[email protected]

PHENIX SALON SUITES FRANCHISING, LLC is a limited liability company formed in Colorado on February 10, 2010. Their principal business address is 662 Encinitas Blvd., Suite 248, Encinitas, CA 92024. They began offering franchises and area development agreements in June 2010.

We grant a franchise for a business operating under the “PHENIX SALON SUITES®” mark (the “Franchise”). A copy Of the Franchise Agreement is attached as Exhibit; B to this disclosure document. For reference purposes in this disclosure document, we call a business in our system “PHENIX SALON SUITES® Business” or a “Business”. A Phenix Salon Suites® Business develops fully equipped luxury salon suites or a hair stylist salon and Licenses these suites, to independent salon professionals and other business professionals under the Phenix Salon Suites mark. PHENIX SALON SUITES® offers salon professionals the opportunity to operate independently without the hassle ^d expense of facility management and maintenance and to maximize their revenues and income. Each suite ranges in size from one hundred square feet to over one hundred and forty square feet; has twelve-foot ceilings, a full window door with lock ,and is engineered acoustically to provide total privacy and maintain a spacious Telling in a quiet Salon setting., Suites can be customized by independent professionals, who can make changes in their personal suites to express their own sense of ownership or individuality, and/or upgraded with flooring, paint, wallpaper, etc., selected by the professionals,, Each Business is operated according to specified procedures. If you acquire a franchise, you must operate your Business according to our business formats, methods, procedures, designs, layouts, standards, and specifications. We also offer a development agreement whereby you ate granted the right to purchase two or more franchises, within an agreed upon development area (the “Development Area”) and to develop those franchisee in accordance with an agreed upon development schedule. A copy of the Development Agreement is Exhibit G to this disclosure document. We began offering franchises and development agreements in June 2010.

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

6/10

Earning Transparency

10/10

Investment Accessibility

1/10

Summary of potential earnings

Average Revenue Per Unit

$310,497 / unit

Average Revenue During 2020
Franchise Type:

Beauty related services

$76,752

Industry Low

$1,249,999

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Phenix Salon Suites Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $63,350 Maximum: $67,600

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $710,467 Maximum: $1,198,282

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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