Why a Fantastic Sams Franchise Is a Great Investment in Any EconomyApril 24, 2017
Our hair salon franchise is virtually bulletproof in a recession and in a bull market
In economically uncertain times, investors are understandably wary of putting their hard-earned capital into a franchise that might not survive the next recession. As history has shown us, when it comes to recessions it’s not if another one will happen, but when.
There are businesses that thrive even in tough economic times, and Fantastic Sams is such a business. We’ve been around for over forty years, and in that time we and our franchisees have seen several recessions come and go, along with much of our competition. Just ask salon owner Mark Holder.
“In 2008, I saw a market downturn, like everyone else,” says Mark, a multi-unit owner with two salons in Indiana. The Great Recession was wreaking havoc with his day job as an IT staffing specialist, a field where corporations were sending thousands of jobs to cheap, offshore providers. He wanted another source of income that wasn’t subject to the pressures of foreign labor markets. “I thought — hair salons. You can’t outsource that. You can’t do it over the phone or over the Internet.”
Mark found a Fantastic Sams salon in his market and bought it. He followed that up with a second unit purchase a year later and has never looked back. He’s just one example of someone who has achieved recession-proof financial stability as a result of investing in a Fantastic Sams hair salon franchise.
When hard economic times hit, people cut costs by eliminating unnecessary spending. One area they don’t compromise on, though, is the affordable luxury of a trip to the salon. Our salons are there for people when they can’t justify the high prices of other luxury salons but still want a top-notch experience.
Since 1976, Fantastic Sams has been a leader in the value salon space, with nearly 1,100 franchise locations in communities across the United States. Unlike discount haircut and budget salons, Fantastic Sams offers a full range of salon services, including haircuts and trend-right styles, color services and waxing, which help generate higher ticket totals and profit margins. With initial investments beginning at just $150,362, Fantastic Sams is a remarkably affordable way to enter the $75 billion, recession-proof hair care industry.
Salons are a stable investment in tough economic times
No matter what’s happening on Wall Street or Capitol Hill, hair will continue to grow, and people will need a place to get it cut. At Fantastic Sams, we fill this basic need while at the same time supplying a range of high-end services such as color, styling, and an all-around superb luxury experience.
We’re the ideal place for the whole family to go: Mom can get her cut, color, and style; Dad can get his cut and wash; and the kids can stay looking clean and sharp. With whole families needing haircuts every six weeks or so, this translates to consistent, dependable revenue for our franchisees. Combine this with a business model that’s built around up-selling services such as hair color and styling products, and the opportunity for outstanding sales is unparalleled.
In addition to supplying our customers’ everyday needs, we’re also there whenever someone needs a style for a special occasion like a prom, job interview, or night out on the town. These are the sorts of quality services customers won’t find at other value salons. With customer retention at 79%, the numbers speak for themselves.
Wealth is not a prerequisite for owning a hair salon franchise
Franchise ownership often seems out of reach to all but the wealthiest of investors. With Fantastic Sams, this isn’t the case. To get started as a franchisee, we require a net worth of $300,000 and $70,000 in liquid capital. With initial investments as low as $150,362, this is an opportunity within reach of the average investor. What’s more, we’ve partnered with The Bancorp Bank to offer streamlined financing options to our franchisees. This makes opening a Fantastic Sams franchise easier than ever.
In addition to helping you with your first franchise investment, we’re also there to support you as you grow your franchise portfolio. Fantastic Sams offers multi-unit agreements, with discounted fees and licensing to make expansion easier than ever. Entrepreneurial, ambitious franchisees can leverage this winning combination to quickly scale their investment and create a lasting business legacy that has a positive impact on their communities.
“Our brand has never been stronger and the time to invest has never been better,” says Jay Capperella, National Sales Director for Fantastic Sams. “We’re aiming to double our network of 1,100 units over the next several years, and we need ambitious, savvy investors to help us achieve that goal. With the introduction of our New Image Salons, Fantastic Sams continues to raise the bar for affordable luxury. We provide a low barrier to entry while supporting our franchisees at every step of the way, whether it’s their first unit or their fifteenth.”
Learn more about the Fantastic Sams hair salon franchise opportunity
Opening your full-service, no-appointment Fantastic Sams is a remarkably affordable way to enter the $75 billion hair care industry. With an initial investment beginning at just $150,362, and with 3-, 5-, and 10-pack agreements available, you can join hundreds of owners like Mark in this potentially lucrative growth industry.