The money of color: How franchisees make the most of multiple revenue streamsDecember 19, 2017
Simple operations, multiple revenue streams make our salon franchise opportunity an achievable dream that’s easy to scale
If your Instagram feed isn’t enough to convince you that almost everyone colors their hair these days, consider this: an estimated 75% of women in the U.S. use color on their hair. In 2016, Fantastic Sams helped provided color services to more than 130,000 clients, and we estimate those numbers will only grow.
Color is a booming segment in the growing salon industry, and Fantastic Sams franchisees are well positioned to maximize that revenue opportunity. In our latest salon design, our Color Bar is prominently displayed as the centerpiece of the space. It’s a reminder to clients that Fantastic Sams, unlike many other salon franchises, offers a full menu of services.
Fantastic Sams clients know they can count on expert color, styling and hair care with our full menu of salon services, and we have skilled stylist educators in every region of the country who hold regular training sessions for all our franchise owners’ stylists. This simplifies your operations so it’s easier to scale up.
How we cash in on the color market
According to Digital Journal, by the end of 2022, the hair color market in North America will be generating an estimated $800 million in revenue, with women as the leading consumers of color products and services. The global market is anticipated to grow by about 9% during that timeframe.
With our operational efficiencies and focus on color, Fantastic Sams franchises will be able to take advantage of the ongoing upswing in demand. Stylists can apply color to one client, and, while the color is setting, cut someone else’s hair. It’s a way for stylists to earn more money while helping franchise owners be more profitable. Color is our No. 1 upsell service, and it also has higher profit margins.
One key to our success
Fantastic Sams is one of those iconic brands that’s been around so long it has become integral to people’s lives. What more and more people are coming to realize is that we’ve been around since 1976 because we’ve managed to stay relevant in an ever-changing industry.
Our full menu of salon services provides multiple streams of revenue and allows us to be nimble and meet evolving client demands, unlike, say, a salon or beauty franchise that only caters to one type of client or offers one simple service. Business models like those are limited to lower average ticket prices and have to hope for higher customer frequency. Our unisex salon model is suitable for everyone in the family, and our value pricing is even more appealing given that we still offer a high-end salon experience.
No salon franchise experience? No problem
Some beauty salon franchise opportunities are more focused on salon industry professionals who want to be owner-operators. We definitely have room for those candidates, but we have also perfected our systems to the point that we make it relatively simple for entrepreneurs to come in on a multi-unit agreement.
We offer financing options through vendor relationships that help you secure funding more quickly and get the ball rolling on your investment. We’ll even help you hire a licensed cosmetologist to be a general manager for your salons. All you need to do is bring your business savvy and meet our minimum financial qualifications – a minimum net worth of $500,000 and at least $100,000 in liquid capital.
If you’d like to learn more about the opportunities to grow with us as we expand our brand nationwide, we invite you to explore our research pages. To start a conversation with someone on our franchise development team, please fill out the no-obligation form on this page and someone will be in touch with you. We look forward to hearing from you!