Why Owning Multiple Fantastic Sams Franchises Is a Good Investment
3 reasons multiple locations are easy to scale
Multi-unit franchise owners make up the majority of franchise ownership, and, according to FranData market researcher, 55 percent of franchisees own more than one franchise location. The numbers are even bigger at Fantastic Sams, where more than 70 percent of our franchises are owned by multi-unit entrepreneurs. Our average entrepreneur owns two franchises.
There’s an excellent reason: multiple locations of the same franchise are less expensive and faster to grow because there are significant economies of scale.
Fantastic Sams was the first nationally franchised hair salon and has grown to more than 1,100 locations over the past 40 years. Unlike discount haircut franchises, Fantastic Sams offers the full range of salon services, including haircuts and trend-right styles, color and facial waxing — all of which help generate higher tickets and margins. Fantastic Sams invented the no-appointment-needed hair salon and continues to be an industry leader.
Here are the three reasons why owning multiple Fantastic Sams franchises is a good idea:
1. You save and invest more on that next franchise
One of the many benefits of joining the Fantastic Sams family as a franchisee is that you can keep your current career and buy just one salon, or you can take advantage of multi-unit incentives by entering into a 3-pack, 5-pack or 10-pack agreement.
Multi-unit franchise owners are attractive to franchisors because a single-unit owner requires the same amount of training and support as the owner who takes on 2-5 locations or more. This results in lower operational costs for the franchisor and usually means a more experienced owner in the field. In franchising, the new and underperforming franchise owners are more expensive to support, while top-performers require less ongoing support and produce higher royalties.
2. Control over your franchise territory
Our business model works well where there’s a certain density of middle-income families — perhaps 30,000 rooftops within a 3-mile radius. Over the years we’ve learned that our customers are looking for free parking and easy-in, easy-out access. Fantastic Sams Hair Salons work best in shopping areas anchored by big-box concentration centers such as grocery and drug stores — places where people are likely to go shopping two to four times a week.
3. You make a bigger difference
The multi-unit franchisee makes affordable services available for more people in their territory. With more Fantastic Sams franchises in the market, more customers have the opportunity to receive haircuts and styles, chemical services such as texturing, straightening, color and facial waxing. Revenues increase as more services and products are being sold. Customers love being able to come to us, with our pricing starting at $14 for a haircut, $10 for facial waxing and highlights starting as low as $29.99 (prices vary by location).