Is Multi-Unit Ownership Possible at the Fantastic Sams Hair Salon Franchise?
More than 70% of Fantastic Sams hair salon franchises are operated by multi-unit managers
A Fantastic Sams hair salon franchise is perfectly designed for the franchisee who wants to grow by adding more salons. In fact, more than 70% of Fantastic Sams salons are operated by multi-unit owners, although many of them started with a single unit. Fantastic Sams is in an industry that boasts long-term economic stability, and we have great financial incentives for investors who want to own multiple units.
John and Patti Prichard are the largest multi-unit franchisees in the Fantastic Sams system; they have 27 salons in the Minneapolis area. John knew from the outset he wanted to own more than one salon, based on the research they did before they joined our franchise family.
With such an easy-to-scale, simple business model, John, a former CFO for a national bakery, was impressed with Fantastic Sams’ performance in an already-stable industry. He and Patti appreciate the level of support we offer to franchisees, which makes it easier to be profitable and own multiple units.
“We follow the guest services model very closely, as well as the operational model. We are very active and involved in leading our teams and holding them accountable to providing a high level of guest services, and we also expect them to take advantage of training to develop their skills,” says John. “We get great support from Fantastic Sams corporate, which offers a lot of coaching, mentoring and training.”
Multi-unit owners Richard and Laurie Upson of San Antonio, Texas, were looking to replace their income from Richard’s job as senior VP of logistics for a large retail company. Like the Prichards, they were drawn to the stability of the salon industry, and they trusted the Fantastic Sams name. From there, it was a matter of scaling up sensibly.
“We looked at a break-even point for a salon and at what we thought we could accomplish as we got salons up and going,” Richard says. “We felt that we’d eventually need about five salons to do that. So we bought five license agreements right out of the chute. We figured if we were going to do this, we were going to be all-in. Also, we got a better price by buying multiple licenses.”
Manage the manager of your franchise hair salons
How do they and other multi-unit owners manage? Our business model makes it easy. Our franchisees don’t need any salon experience, they just need a solid business background. Owners typically hire licensed cosmetologists to manage the salons and to work with the stylists day-to-day. A multi-unit owner can shine by staying on top of marketing and “managing the managers” for their salons, making sure customers always have a positive experience and always leave happy. One general manager often can handle two or three salons, so franchisees can create a tiered management system that makes it easy to understand what’s going on at any salon at any given moment. Buying multiple salons is something of an insurance policy for the savvy investor.
“Everybody’s got to get a haircut. During tough times, they may go a week longer or two weeks longer, but the need for a haircut never goes away,” Richard says. “Women may wait a few weeks longer to get their hair colored, but they’re still going to want the service.”
He and Laurie, like most of our franchisees, had never worked in the salon industry before — but they didn’t need that experience. “We wanted something that was not beyond our knowledge technologically,” he says. “Also, we wanted a business model that would let us invest in multiple locations. Some franchises require more than $1 million for that level of investment, but we didn’t have that kind of money. We liked the protection of having geographic diversity. If one salon is a little off, then you’re still OK.”
In the franchising world, there are seemingly limitless options to choose from, but savvy investors will be able to spot Fantastic Sams’ advantages almost right away.
“I looked at Fantastic Sams, along with a lot of business models, and Fantastic Sams stood out,” says John, the former CFO. “I did a lot of due diligence, talking to existing franchisees and going into a lot of detail with them so that I could get a feel for the profit-loss metrics and the cash-flow model — things that the franchisor is precluded from talking about. It was easy for me to come up with break-even points and see the upside opportunity. The financial exercise was key to my deciding to get into the business.”
Learn more about Fantastic Sams
Learn more about Fantastic Sams
Fantastic Sams is the oldest full-service unisex hair salon franchise in the nation, and we have grown to more than 1,100 units over the past 40 years. We offer customers current styles at affordable prices in a convenient atmosphere. Unlike discount haircut franchises, we serve more women than men, and we offer cuts, styling, color and facial waxing — which drives up our average ticket price. That means larger profit margins from the same level of investment you might make in our competitors’ salons.
You don’t need any salon experience to open your own Fantastic Sams hair salon franchise; you just have to be passionate about people and have good business sense. If you are thinking of making the leap to business owner independence, start the journey by signing up for our free franchise report. To start a conversation about this franchise opportunity, please fill out the form below or call us at 855-371-3465. You may also want read Fantastic Sams franchise review on our company blog. We look forward to hearing from you!