Phenix Salon Suites

Phenix Salon Suites began in 2003 after celebrity stylist Gina Rivera, while hospitalized with early labor complications, realized she still had to pay booth rental fees even though she could not work. She and her husband, Jason Rivera, developed a different salon model in which independent beauty professionals operate private, customizable suites as their own businesses while the franchisee manages the real estate and collects recurring rent. The Riveras launched Phenix Salon Suites in 2007 and named it after their firstborn son. The company began franchising in 2012 and opened 26 locations during its first franchising year. It opened its 100th location by 2014 and its 200th by 2017. As of 2025, sources report approximately 399 to 450 total units, including 367 franchised locations and 32 company owned units in the United States. The brand also has international operations in the United Kingdom, where its fifth global location is operating. In the United States, Phenix has locations in 32 states, with the greatest concentration in California, Texas, Florida, New York, New Jersey, Arizona, and Maryland. The South is its largest region, with 167 units listed in the most recent FDD filing. Phenix has helped turn salon suites from a fragmented landlord model into a scalable franchise category and has been recognized as the fastest growing salon suite concept in the United States. This overview is independent research from PeerSense staff and was not produced with promotional consideration from the franchisor.

It has remained resilient through economic cycles because many consumers view grooming as close to a necessity rather than a luxury. Salon suites address several operating difficulties found in traditional salons, where one owner may be responsible for employees, inventory, scheduling, and customer service. In the suite model, stylists, estheticians, nail technicians, massage therapists, and other licensed professionals operate as independent tenants. They manage their own clientele, hours, and pricing, while the franchisee acts primarily as a property manager collecting monthly rent. The category grew at double digit annual rates throughout the 2010s and into the 2020s. After the pandemic, many licensed beauty professionals left traditional salon employment for independent work, increasing the pool of potential tenants seeking private suites. The global wellness industry is estimated at more than $1.8 trillion, and the U.S. Bureau of Labor Statistics projects continued employment growth for barbers, hairstylists, and cosmetologists through 2032. Beauty franchise investments have attracted buyers seeking semi passive income, since franchisees do not have to hire stylists, manage service quality, or handle client complaints. Commercial real estate and management experience may be more useful than cosmetology knowledge, broadening the potential investor pool.

Phenix Salon Suites sits in the mid to premium range of franchise investments. The initial franchise fee is $52,500 for one location. A second unit carries a discounted fee of $40,500. One 2025 source lists the franchise fee at $85,000, so buyers should verify the current amount in the latest Franchise Disclosure Document. Based on 2025 FDD data, total initial investment ranges from $721,109 to $1,420,469. The most recent 2026 figures show $721,000 to $1,448,000, while a broader 2025 range reaches $2,425,469 for higher cost markets and larger locations. Leasehold improvements are the largest cost, ranging from $520,120 to $1,928,819. Furniture, fixtures, equipment, and signage range from $57,728 to $133,801. Real estate deposits and three months of rent range from $24,701 to $65,410, while architectural and engineering plans range from $20,481 to $48,383. Working capital ranges from $10,000 to $100,000, and initial marketing expenses are $10,000. Buyers are expected to have $300,000 to $400,000 in liquid capital and at least $1,000,000 in net worth. The royalty is based on square footage rather than a conventional percentage of gross revenue, with sources reporting different per square foot amounts. The national marketing fee is also based on square footage. This structure ties the fee to the physical asset rather than tenant revenue. In 2018, Gina and Jason Rivera brought in 10 Point Capital as a minority investment partner to support national growth and strategic direction.

Operating a Phenix Salon Suites location differs substantially from running a traditional salon. The franchisee focuses on property management, tenant recruitment and retention, lease administration, and facility maintenance. There are no stylists to schedule, retail inventory to manage, or personal services to deliver. That structure can suit investors from corporate, real estate, or financial backgrounds who have no beauty industry experience. The brand says its strongest franchisees generally come from business management or investment backgrounds and seek a recurring income asset rather than a job. Suite sizes depend on the site, with mid tier locations typically occupying 4,501 to 6,000 square feet. Training lasts one week, including 3.5 days with the corporate executive team and 1.5 days of hands on training at an operating franchise location. Corporate assistance includes site selection, lease negotiations, tenant recruiting, marketing programs, business development resources, and a proprietary app for attracting independent lifestyle professionals seeking suite space. Each franchisee receives a protected geographic territory, and the company encourages multi unit ownership through discounted fees for later locations. Co operative advertising is not listed among the support services. Local marketing help and Phenix TV, a proprietary in suite media channel requiring an initial investment of $1,000 to $1,500, offer additional visibility tools.

Occupancy is the main revenue driver in this real estate based model. Locations in dense metropolitan markets with strong demand from licensed professionals may outperform suburban or lower population markets where tenant recruitment takes longer. A location with 90% or higher suite occupancy can materially outperform one at 60% occupancy, making tenant recruitment and retention central to results. Because the royalty is tied to square footage rather than revenue, higher revenue does not produce a higher dollar royalty as occupancy improves.

Phenix Salon Suites has expanded since franchising began in 2012. It opened 26 locations in that first year, passed 100 units by 2014, and reached 200 units by 2017. By February 2025, the brand reported more than 400 locations worldwide, including 32 company owned units and 367 franchised units, with additional locations under development. During 2025, it opened 26 locations, including its first United Kingdom site in York, England, and set a goal of opening more than 30 locations in 2026. International plans include Canada, Sweden, and Ireland. The brand’s stated advantages include recognition among independent beauty professionals, a tenant facing app for suite discovery and leasing, a real estate process developed across hundreds of locations, and the backing of 10 Point Capital. Leadership includes co founders Gina Rivera as Founder and Jason Rivera as CEO, along with President and CEO Brian Kelley and Senior Vice President and COO Jerry Griffith. This combination of founder involvement and professional management provides continuity as the system grows.

The likely Phenix Salon Suites buyer is a business focused investor who understands commercial real estate and wants semi passive income. Franchisees do not need cosmetology licenses or personal service skills. Their core responsibilities are tenant relationships, property maintenance oversight, and local marketing. The company encourages multi unit ownership, and the second location fee of $40,500 gives successful operators a lower entry fee for expansion. The brand is concentrated in California, Texas, Florida, New York, New Jersey, Arizona, and Maryland, where the licensed professional population and demand for suites are stronger. The South is the largest franchise region with 167 units. Its presence in 32 states leaves room for development, especially in mid size metropolitan areas with less competition. The franchise agreement lasts 10 years. Opening a location generally involves site selection, lease negotiations, architectural planning, permits, and construction, with a typical timeline of 9 to 18 months depending on market conditions and construction speed. Transfers and resales follow the franchise agreement.

The system has more than 400 operating locations, although results vary materially by occupancy, site selection, and tenant recruitment. The model can suit investors with $300,000 to $400,000 in liquid capital who prefer recurring rental income over a service business with multiple employees. Expansion into the United Kingdom and planned growth in Canada, Sweden, and Ireland provide additional markets for consideration. PeerSense assigns the brand a Loan Activity Score of 58 on its proprietary Franchise Performance Index, a moderate rating that calls for detailed due diligence. PeerSense provides independent due diligence information covering SBA lending history, the Loan Activity Score, location maps with Google ratings, FDD financial data, and comparison tools for reviewing Phenix Salon Suites against other salon suite and beauty franchise concepts.