Business

Salon tenants face eviction after rent payments did not reach landlord

Business owners at a Phenix Salon Suites location in Cary discovered an eviction notice on December 3, after learning the rent they paid had not been passed on to the property owner. The confusion threatens nearly 30 small businesses during the critical holiday season, as franchise officials say they are working with the landlord to resolve the dispute.

Sarah Chen2 min read
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Salon tenants face eviction after rent payments did not reach landlord
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Business owners at the Phenix Salon Suites on Parkside Main Street in Cary found an eviction notice on the door on December 3, 2025, despite saying they had paid their monthly rent. The notice set off a scramble among nearly 30 tenants who operate independent suites in the building, many of them sole proprietors whose busiest weeks arrive with the holiday season.

Tenants said each business pays about $1,100 a month, which amounts to roughly $14,000 per month in total rent for the building. After seeing the eviction notice, several tenants traced their payments to a site manager and learned he was not the property owner. Marie Duke, a long time hair stylist at the location, said, "We always thought that he owned it. He says that his hands are tied because he turns the rent money in. Apparently somebody above him has not been paying it."

Other tenants voiced disbelief that collective tenant payments would fail to cover a single monthly rent obligation. "There are almost 30 businesses in this building. That's more than enough to cover the rent. So we don't understand how since June the rent has not been paid. Not one penny," said Justin Burr, a hairstylist at the salon.

Phenix Salon Franchising confirmed the location operates independently, and the company said it was working with the landlord to find a resolution. As of December 4 the investigation remained ongoing and the uncertainty continued to loom for tenants who rely on holiday bookings. Several business owners have already decided to close their suites and move to new locations, while others hope a deal between the franchise and landlord will allow them to stay open.

The situation highlights how intermediary collection arrangements can concentrate operational risk for small businesses. For local entrepreneurs operating on slim margins, an interruption in access to premises during peak season can have outsized financial effects. The disruption also raises questions for other Wake County commercial tenants about transparency in rent collection and chain of custody for payments.

For now the immediate economic impact will be measured in lost appointments, relocation costs and revenue forgone during December. The longer term effects will depend on how quickly the landlord, the franchise and tenants can restore clear payment lines and legal assurances so these small businesses can resume normal operations.

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