Preferred Lending Program Gives New Fantastic Sams Owners a Quick Start
Ready access to a reliable funding program means new franchise owners can focus on finding a location, hiring reliable staff and other pre-opening duties
Many people who want to start a salon business have one giant roadblock: They struggle with a loan process that is not conducive to the industry, and they don’t have adequate savings to make a go of it. Thanks to a preferred lending program, new Fantastic Sams salon franchise owners are able to clear that hurdle easily.
“We hear from a variety of entrepreneurs who’ve researched us and see the value we offer,” says Linda Chadwick, President and CEO. “From veterans who are finishing with their time in the service to individuals and couples who want to venture out on their own after years in corporate positions, people reach out to us every day. They all are great prospects, and they are all interested in talking about our financing program.”
Single program covers startup costs
Our Preferred Lending Program was created in partnership with The Bancorp, a national lender with a long and successful history of helping franchise owners with various financial needs. A successful borrower receives capital for all salon startup costs, as well as best-in-class PCI-compliant credit card processing, which means the Fantastic Sams salon franchise can process chip-embedded credit and debit cards from day one.
“Many people come to us with their financing needs already met, but others are earlier in the research and discovery process, so financing is one question they have,” says Linda. “Being able to offer a high-quality, Preferred Lending Program such as this one means that we can offer the necessary startup resources for our new owners. They really appreciate that.”
Quick approval means faster startup
A major benefit of the program is that the new Fantastic Sams salon franchise owner can apply for funding while also signing his or her license agreement. That means moving on to site selection and lease negotiations while the financing application is being processed. This expedites the process with parallel efforts underway. Rather than going back and forth between a bank or outside lender, the Fantastic Sams corporate team is working on the new salon and the grand opening of the new salons.
“They’re not out there shopping for rates because we’re offering one of the best packages around,” Linda says. “There are some specific credit-score requirements that must be met, but they are reasonable and in line with what any commercial lender would require. If the new owner doesn’t have any bankruptcies or other negative marks, there usually are no problems.”
In fact, more than 40 new Fantastic Sams salon franchise owners-to-be are in the program’s pipeline now, so the proof really is in the numbers.
Fantastic Sams invented the no-appointment-needed concept and was the first national hair salon franchise. It has grown to nearly 1,100 locations in more than 40 years. Unlike discount franchises, Fantastic Sams offers a full range of salon services, including a full-service color bar, facial waxing and a full line of branded shampoos, conditioners and styling products, all of which generate higher tickets and margins. A recent logo refresh, store redesign and consumer website upgrades illustrate how the Fantastic Sams franchise continues to be an industry leader.