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Description
Investment Icon

What Are the Initial Investment Costs for a Phenix Salon Suites Franchise?

Phenix Salon Suites requires an initial investment ranging from $710,467 to $1,626,956. This includes a franchise fee of $52,500. Additionally, franchisees should be prepared for ongoing costs, including a 6% royalty fee and a 1% marketing fee. To start, franchisees need to have a cash requirement between $710,467 and $1,198,282, as well as a net worth of $500,000 to $1,000,000.

Fees Icon

What Is the Revenue Potential for Phenix Salon Suites Franchisees?

Franchisees can expect average annual revenue of approximately $467,819 per unit, with a median revenue of $442,634. The revenue can vary significantly, with the lowest reported annual revenue at $172,495 and the highest reaching $1,062,513. This potential for revenue underscores the opportunity for profitability in the salon suite industry.

Revenue Icon

What Are the Financial Metrics to Consider with Phenix Salon Suites?

Phenix Salon Suites has a gross profit margin of 71.4%, which indicates a healthy financial performance despite operating expenses being relatively high at 144.6% of revenue. The EBITDA stands at $171,885, representing 36.7% of revenue. Understanding these metrics is crucial for franchisees to evaluate their financial viability and operational efficiency.

Breakeven Icon

How Quickly Can Franchisees Expect to Break Even?

The breakeven time for a Phenix Salon Suites franchise is approximately 12 months, which is relatively quick compared to many other franchise opportunities. Franchisees can anticipate an investment payback period of around 23 months, making this franchise an attractive option for those looking to recover their initial investment in a reasonable timeframe.

Phenix Salon Suites Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

23 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$52,500
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$710,467 - $1,626,956
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$710,467 - $1,198,282
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$467,819
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$442,634
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,062,513
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$172,495
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Health & Beauty Franchises
Category icon A more specific division within the broader industry.

i Category:

Hair Salons
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Jason Rivera
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

662 Encinitas Blvd., Suite 248, Encinitas, CA 92024
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2010
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Phenix Salon Suites Franchising, LLC

Phenix Salon Suites Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

341
The number of locations owned by independent franchisees.

Franchised Units i

326
The number of locations owned and run by the franchisor.

Corporate Units i

15
Units 2020 2021 2022
Total Units 261 292 322
Net Change YoY 31 30
Franchised Units 255 285 307
Net Change YoY 30 22
Corporate Units 6 7 15
Net Change YoY 1 8
Investment About

Investment Overview

The Phenix Salon Suites franchise requires an initial investment ranging from $710,467 to $1,626,956. This includes a franchise fee of $52,500 and ongoing royalty and marketing fees of 6% and 1%, respectively. Prospective franchisees should be prepared with a minimum cash requirement of $710,467 to $1,198,282 and a net worth between $500,000 and $1,000,000 to ensure they meet the financial prerequisites for ownership.

Potential About

Revenue Potential

Franchisees can expect average annual revenue of approximately $467,819 per unit, with a median revenue of $442,634. The revenue range is quite broad, with some units achieving as low as $172,495 and others exceeding $1,062,513 annually. This variability highlights the potential for profitability depending on location and management practices.

Metrics About

Breakeven and Payback

The Phenix Salon Suites franchise typically sees a breakeven point within 12 months of operation. Franchisees can expect to recoup their initial investment in about 23 months, making it a relatively attractive option for those looking for a quicker return on investment in the salon suite industry.

Fees About

Franchise Growth

As of 2022, Phenix Salon Suites has seen steady growth in its franchised units, increasing from 255 units in 2020 to 307 units by 2022. This upward trend indicates a strong market presence and brand acceptance, providing a promising environment for new franchisees looking to enter the salon sector.

Breakeven About

Corporate Support

Phenix Salon Suites operates a combination of franchised and corporate-owned units, with 15 corporate locations as of 2022. This structure allows franchisees to benefit from corporate support while also fostering a community of franchise owners who can share best practices and operational insights.

Units About

Financial Performance Metrics

The average financial performance metrics for Phenix Salon Suites reveal key insights for potential franchisees. With operating expenses reported at $676,675, and an EBITDA of $171,885, franchisees can assess the financial viability of their investment. Understanding these metrics is crucial for managing operational costs and optimizing profitability within the franchise model.

Frequently Asked Questions

The initial investment for a Phenix Salon Suites franchise ranges from $710,467 to $1,626,956, which includes the franchise fee and other startup costs.