Importance of Clear Value Proposition and Ongoing Support for Franchisees

Brian Kelley has served as the President and CEO of Phenix Salon Suites for just under four years, leading the brand toward exponential growth and success across more than 340 locations in 34 states through the U.S. and now internationally. He has over 25 years of financing, owning, operating, and developing franchise businesses all across the United States in both the salon and restaurant industries. Mr. Kelley currently leads the charge as the salon suite concept continues expanding its global and national footprint.

Phenix is a salon suite rental concept that offers an opportunity for salon and lifestyle professionals to operate their own business in a private salon suite within a larger, well-located salon. The brand licenses individualized suites so professionals can service their clients in a safe and secure environment. Founded in 2007 by beauty expert and celebrity hairstylist Gina Rivera, the Phenix suites concept has reinvented the salon industry. The company began franchising in 2012 and today has more than 340 salons across 33 states with continued plans to expand internationally. The brand sets itself apart through its semi-absentee opportunities and recession resistant model. Phenix ended 2022 with 70 franchise agreements, creating a strong pipeline for 2023 with 60-plus locations currently under construction. The brand is also the #1 salon suite concept and has been recognized by Entrepreneur's Franchise 500 for the past decade. 

Key Takeaways:

[2:19] - During and after Covid-19, Phenix grew as a direct result of their salon suite model to keep people safe.

[3:16] - Brian’s background began in the restaurant industry and he shares why he made the change.

[4:51] - There are so many businesses out there in the health and beauty industry, but Phenix is unique.

[6:18] - Brian explains the business model that makes Phenix stand out.

[8:39] - The stylists work their own businesses and Phenix makes the space available. It is a semi-absentee model.

[9:53] - Originally there was a front desk component but they’ve gone away with it as it really just wasn’t needed.

[12:01] - Stylists take care of their own suites including day to day cleaning.

[13:40] - Once a facility is open, it’s all about getting people in the suites and maintenance.

[15:12] - There’s not a lot of opportunity to build more value after a stylist has a suite as the stylist is maintaining their own business and the franchisee is absent.

[17:08] - Brian describes the app that franchisees use to help manage the site.

[18:32] - The founder of Phenix is still very much involved and is the face of the brand.

[19:53] - Gina, the founder, has a really interesting story that led to the creation of Phenix Salons.

[21:41] - Gina was also on an episode of Undercover Boss that highlighted the strengths of the business.

[23:30] - Stylists can build quite a client base through the use of social media.

[26:12] - The hardest growth is going from 1 to 2 locations. 

[28:42] - Look forward as far as you can, but look at your current growth first.

Mentioned in This Episode:

Phenix Salon Suites Franchising Site