Fantastic Sams Reduces Initial Investment for Salon Franchises
Initial investment for new Fantastic Sams salons drops by $5,000
The resurgence of the iconic Fantastic Sams hair salon franchise brand keeps going, and in the company’s new Franchise Disclosure Document, the initial investment for new salons dropped $5,000 from the previous year.
Fantastic Sams was one of the pioneers of the no-appointment needed family hair salon when it started more than four decades ago, and the previous year saw the launch of the New Image salon model. Like most retail, service-based businesses, redesigns are an important way for brands to stay relevant with customers; and Fantastic Sams’ new design has exceeded franchisees’ expectations and garnered a lot of positive feedback from customers. Fantastic Sams has been trending up in sales as a result, and many new franchise owners are taking a close look at the time-tested brand.
New designs often come with higher build-out costs, and it is noteworthy in the franchise industry to see a well-known brand lower costs rather than raise them. The initial investment for a Fantastic Sams now starts at just over $145,000. Retail franchises that operate out of brick-and-mortar locations often cost $300,000 – $400,000 to open, making Fantastic Sams attractive to potential franchise buyers.
“We’re able to reduce the minimum investment threshold for owning a Fantastic Sams franchise,” says Linda Chadwick, Fantastic Sams President and CEO. “Through careful consideration of every expense, from cabinetry to flooring, we’re able to lower costs even further than last year, and that’s something to be proud of. We think now is a great time to invest in a hair salon, and Fantastic Sams is one of the best opportunities available today.”
A lower cost doesn’t mean a lower quality build-out. New Image salons are modern, sleek and very attractive to customers. In most new locations, sales have exceeded expectations and have increased from the average sales amounts at older design locations.
“Customers come in and look around and just say ‘Wow!,’” said Michael Kuryllo, a multi-unit owner in southern California. “They can’t believe our prices are so low; the salon feels much more like a high end salon, and it makes the entire customer experience feel more valuable.”
“We take our owners and their bottom lines into consideration with every decision we make,” Linda says. “Whether it’s introducing new products or the New Image Salon, cost drives our decisions, and we strive to keep the cost of doing business as low as possible.”
Fantastic Sams franchisees are able to focus on growing their businesses, expanding the client base and bringing the brand to new generations of hair salon customers. Having a modern salon design that attracts customers and having a lower initial investment means it is easier to scale to several locations. The average franchise owner in the Fantastic Sams system owns 3 or more salons and many are opening 5 or more. The lower initial investment helps as does Fantastic Sams’ special loan programs, which can offer up to 85% lending on the cost of a new franchisee’s first location and up to 90% on additional locations.
“We’re the original hair salon franchise, and we understand the importance of keeping costs down,” Linda says. “If we can eliminate a step, trim the cost of a product or improve margins, we’re going to pursue that opportunity. At the end of the day, that’s our primary task, to help our franchise owners maximize the margins for our services so they can take advantage of the huge demand for our services. After all, everyone needs haircuts, and we believe we are one of the most attractive franchise opportunities in the salon space.”
Learn more about the Fantastic Sams hair franchise opportunity
Opening a full-service, no-appointment-needed Fantastic Sams is a remarkably affordable way to enter the $75 billion hair care industry. With an initial investment beginning at just over $145,000 and with 3-, 5-, and 10-pack agreements available, you can join this potentially lucrative growth industry.