Phenix Salon Suites®
Bottom line
- Total investment $721K – $1.4M including a $53K franchise fee.
- Average unit revenue of $487K/year (median $434K). Estimated payback in 6.8 years.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one PHENIX SALON SUITES® unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PHENIX SALON SUITES® units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.2M purchase
Total debt
$6.6M
SBA $4.1M + senior + seller note
Overview
About
Franchisees operate salon suite rental spaces, leasing individual studios to independent beauty professionals (hairstylists, estheticians, etc.). Day-to-day responsibilities include tenant acquisition and retention, facility maintenance, utilities management, rent collection, and compliance with salon licensing regulations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Phenix Salon Suites presents moderate-to-cautionary risk: slow growth trajectory, past employment litigation, undocumented financials, and a capital-intensive model with moderate profit margins.
Score breakdown · what drove the 54 / 100 rating
- 01MINORSlow unit growth of only 3.1% YoY suggests market saturation or retention challenges in a 399-unit system
- 02HIGH2019 litigation regarding illegal 'no-poach' provisions indicates compliance and legal risk exposure
- 03MINORNo Item 19 financial performance representations limits ability to validate the $157,259 average net income claim
- 04MINORHigh initial investment range ($721K-$1.42M) against modest average net income ($157K) implies 4.6-9 year payback period
- 05MINORFixed royalty structure ($0.34/sq ft) may be unprofitable for smaller locations or during revenue downturns
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PHENIX SALON SUITES® · FDD (2025) PDF