What Are the Startup Costs?
A hair salon franchise can have an affordable entry point
Wealth is not a prerequisite for owning a salon franchise. One of the many benefits of joining the Fantastic Sams family as a franchisee is that you can take advantage of unique, industry-leading financing, thanks to our strategic partnership with Bancorp.
Starting out as a new salon entrepreneur, you can open a single salon or take advantage of multi-unit incentives by entering into a 3-pack, 5-pack or 10-pack agreement. This is a great way to carve out your own piece of the market for future growth and opportunities.
The business model is simple and easy to scale. Here’s a look at our startup costs from Item 7 in our FDD.
|Type of Expenditure||Amount (Low-High)||Method Of Payment||When Due||To Whom Payment Is To Be Made|
|TOTAL||$145,362 to $317,006|
|Initial License Fee||$30,000||Lump Sum||When you sign the License Agreement||Fantastic Sams Franchise Corp (FSFC)|
|New Owner/SFC Training Fee||$1,000 to $2,000||Lump Sum||Before your Training||FSFC|
|Travel and Living Expenses For You and Your Employees During Training||$1,500 to $3,000||As Incurred||During Training||Airlines, Hotels & Restaurants|
(including architectural fees)
|As Incurred||Before you open your Salon||Landlord, Suppliers
|Rent||$1,600 to $7,000||Lump Sum||Before you open your Salon||Landlord & Suppliers|
|Utility Deposit||$500 to $1,500||Lump Sum||Before you open your Salon||Utility companies|
|Initial Haircare Product Inventory (3 month supply)||$8,000 to|
|As Incurred||Before you open your Salon||FSFC Other Distributor|
|Salon Equipment||$25,000 to|
|Lump Sum||Before you open your Salon||Suppliers|
|Other Equipment, Fixtures, and Furnishings||$6,262 to $16,506||Lump Sum||Before you open your Salon||Suppliers|
|Salon Supplies - Non Technical (3 month supply)||$2,500 to $4,500||As Incurred||Before you open your Salon||Suppliers|
|Salon Identity and Graphics Kit (interior graphics)||$500 to $2,000||Lump Sum||Before you open your Salon||FSFC Other Distributors|
|Advertising (first 3 months)||$7,500 to|
|As Incurred||As Arranged||Suppliers|
|Non-refundable as required||As Incurred||Insurance Company|
|Additional Funds - 3 Months||$30,000 to|
|As Incurred||As Arranged||Employees, Suppliers & Utilities|