Major banking partners help pave the way to franchise ownershipNovember 9, 2017
With financial institutions forming strategic alliances with Fantastic Sams, our franchise makes it easier for entrepreneurs to finance their business
One of the reasons it can take so long to open a new salon franchise is the process of securing funding. There are a lot of hoops to jump through, a lot of paperwork – and a lot of waiting. The strategic banking partnerships Fantastic Sams has formed allows new franchisees to begin the loan approval process early, secure financing easily and open their salon doors quickly.
Our relationships with The Bancorp Bank, Radius Bank and Hitachi Capital mean that we have worked with key personnel at these institutions to establish pre-determined criteria for franchise candidates to help speed up the loan approval process. With funding from The Bancorp, new franchisees who meet the qualifications can receive 85/15 financing on their first unit and 90/10 financing on subsequent units. We have similar programs in place with Radius and Hitachi.
“The successful creation of this financing program is a testament to the strength of our business model and an important step in the company’s continued growth,” says Gerald Wells, General Counsel for Fantastic Sams. “This program – coupled with our forward-thinking management, strategic supplier alliances, loyal patrons and strong unit economics – will undoubtedly allow us to stand out more prominently in the attainable and affordable beauty arena.”
Room to grow
The Bancorp Bank is a leading provider of securities-backed lines of credit, and one of the few bank-owned commercial leasing groups in the nation. In addition to the capital earmarked for new unit growth, The Bancorp Bank has set a dedicated funding pool for existing franchisees to scale up and remodel. Many current Fantastic Sams franchise owners have used The Bancorp Bank financing to expand, and new investors have found it much easier to start their first franchise with us.
Ordinarily, it’s much more difficult to secure that kind of financing. Traditional lending institutions such as the SBA require significant collateral and may require business owners to put up 20% or more of the startup costs. Thanks to our strategic banking partnerships,, qualified candidates can skip a lot of the paperwork required to introduce the franchisor, such as years’ worth of financial documentation, P&Ls, cash flow statements, etc. Fantastic Sams, with nearly 1,100 units nationwide and a 43-year history, has already been vetted by The Bancorp Bank and the other institutions we partner with, making the loan application process much more efficient.
“Our national program has a smooth, time-sensitive loan approval process,” says Jeff Nager, Director of Small Business Lending for The Bancorp Bank. “This access to capitalization will enable qualified franchisees to build their business, their industry and an employment base to create jobs. We are thrilled to have Fantastic Sams as a member of our national lending program.”
Why our national hair salon chain is a worthy investment
These franchisee lending programs are important to us because we are in the midst of a major brand resurgence and seeing unprecedented growth. We have multi-unit development agreements available in established territories as well as opportunities in new markets.
Our business model is easily scalable, with a manage-the-manager system that allows you to focus on local marketing efforts and growing your business while a licensed cosmetologist manages day-to-day salon operations. We help you hire and train your creative staff, and we continue our stylist and manager education throughout the term of your franchise agreement.
Clients love our full menu of affordable salon services. Unlike cut-only, kids-only or men-only salons, Fantastic Sams caters to the whole family. We offer cuts, color, styling and facial waxing to clients who either schedule their appointments or stop by when it’s convenient for them.
We treat our guests to a high-end salon experience at an affordable price point, and our full range of salon-grade products help franchise owners increase their revenue opportunities while helping their creative staff earn higher commissions.
We are very proud to be recognized as a preferred brand and strategic partner with our bank partners. This is a true testament to the strength of our system and the quality of our brand. If you’d like to learn more about the franchise opportunities available with our national hair salon chain, please explore our research pages. You can start a conversation with one of our franchise development representatives by filling out the short form on this page. We look forward to hearing from you.