Is Multi-Unit Ownership Possible?
Fantastic Sams franchise hair salons are perfect for multi-unit ownership
We’ve created a business model for franchise hair salons that is perfect for two types of owners: the owner-operator with salon experience who has always wanted to own their own business, and the entrepreneur with no salon experience who wants a proven franchise in a stable industry that is experiencing steady growth and is recession-resistant. Our salons are so easily scaled that 70% of our franchisees are multi-unit owners.
Financing made easier
The Fantastic Sams Strategic Bank program makes it easier for franchise owners to scale more quickly. Fantastic Sams has formed a strategic alliance with The Bancorp Bank and Radius Bank that provides start-up funding for franchisees entering the Fantastic Sams system, as well as expansion and remodeling funding for existing franchisees.
The Bancorp’s franchise lending program is a unique approach to franchisee lending. The collaborative effort between The Bancorp and Fantastic Sams was specifically created to expedite startup and expansion projects for new and existing franchisees who meet predetermined qualifications. The Bancorp program is limited to franchise systems with measured performance and experience within their operations.
The Prichards’ Story
John and Patti Prichard are the largest multi-unit franchisees in the Fantastic Sams system, with 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 offered 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 for 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.”
Although many franchisees start with just a single unit, most of our salons are operated by multi-unit owners. That’s because Fantastic Sams operates in an industry with long-term economic stability, and we strive to make it easier for investors to own multiple units through financial incentives as well as our relationship with The Bancorp. That’s why we’re still at the top of our game after more than 40 years.
Manage the manager of your franchise hair salons
How do these individuals and our many other successful multi-unit owners manage? The short answer is our business model, which makes easy work of managing multiple locations. Our franchisees don’t need any salon experience; they just need a solid business background.
Owners typically hire licensed cosmetologists to manage the salon and work with the stylists. A multi-unit owner can shine by staying on top of marketing and “managing the manager,” a skilled General Manager who can make sure stylists are on top of their game and clients always leave happy. One GM 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.
Geographic diversification makes more sense to some owners, who like the idea of investing in multiple units so that they can build an interconnected network of businesses that support one another.
Stable industry, diversification strategy
In the franchising world, there are almost limitless options to choose from. Savvy investors will be able to spot Fantastic Sams’ advantages almost right away.
“I looked at a lot of business models, and Fantastic Sams stood out,” says John Prichard, 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 me deciding to get into the business.”
You can start the process of buying your own hair franchise by filling out the form on this page. If you’d like to know more about Fantastic Sams, please explore our research pages.