Companies continue to be attracted to the beauty industry, mainly the hair care field, because it’s both stable and secure. Since taking care of one’s looks is important, joining a hair salon franchise can give people an appealing opportunity to build their own business. This article offers a thorough explanation of the Fantastic Sams opportunity for anyone looking to start as a franchisee in 2025. The world beauty market values the lively and vital role of the hair care industry. Some important numbers that underline its relevance are these: In 2023, the global hair salon service sector was valued at USD 71.5 billion and is expected to increase by 6% per year between 2024 and 2032.
This means there has been steady and reliable growth over this period. In the United States in 2023, the hair styling market’s revenue was about $50 billion and was expected to rise to $53.3 billion by 2028. About $32.3 billion is earned through haircutting and styling services in 2023, reflecting the strong desire for ordinary hair services.
Among the top brands in the U.S. hair salon service market, Fantastic Sams franchise owns a market share that competes at 20%-25% with other leading franchises Great Clips and Regis Corporation.
Why Does a Hair Care Business Make Sense?
The business of a salon is often regarded as a sensible choice to invest in for a number of good reasons.
- Recession-Resistant Demand: Regardless if the economy is stable or in recession, hair care is always needed. Because of this constant demand, demand for housing usually holds up better than demand for things people buy on a whim when the economy goes down.
- Recurring Clientele: People’s hair grows, so they keep coming back for regular haircuts, color services and style treatments. As a result, clients keep returning regularly, lasting relationships with the salon are built and steady earnings are ensured.
- Essential Service: Hair care helps promote cleanliness and allows us to look our best. Being essential means that professional services are always required repeatedly.
- Tangible Product/Service: Some digital businesses are easier to sell because customers can understand and use what they do right away, but a hair salon does the same thing in a much more noticeable way. This contact between members of the team and customers often leads to better relationships.
- Relatively Low Overhead (for established models): Setting up a franchise requires some initial capital, but a well-known model can help handle ongoing business costs much better than salon owners whose brand is not well-known.
About Fantastic Sams Franchise Corporation
Fantastic Sams is proud of its background in providing low-cost, complete hair care services. When Sam Ross founded the brand in Memphis, Tennessee in July 1974, the vision was to revolutionize hair services by offering a salon everyone could access. He suggested opening a hair salon where everyone, both men, women and children, could find several services without needing an appointment.
Franchising started in 1976 for the company, allowing it to grow its presence across North America rapidly. Throughout the years, Fantastic Sams has developed, keeping its main promise of supplying good hair services affordably and with attention to quality. In 2012, Fantastic Sams joined the Dessange Group North America, a top-notch European salon chain. With this purchase, Fantastic Sams got better services and a stylish, fresh look, keeping its prices at an accessible level.
Fantastic Sams Cut & Color is known as a national brand and operates from almost 550 branches across North America. Its corporate headquarters work from Maple Grove, MN as part of Dessange Group North America. The business offers an affordable luxury service by creating a quality experience for clients without charging a lot.
The Fantastic Sams Concept: Core Services, Target Market, and USPs
Core Services: Because Fantastic Sams salons provide a variety of hair treatments as well as cuts, they don’t just spotlight cuts like many to-the-point shops do. Some of their main services are:
- Haircuts: Men, women and children of any age and hair type can all receive a haircut here.
- Hair Coloring: Looking for blonde, brunette, red, blue, purple or gray? Try one of our highlighting, balayage or full-color treatments.
- Hair Styling: everyday styles and updos for special occasions.
- Texturizing Services: Perms, straighteners and other texturizing methods are included here.
- Facial Waxing: Working as a simple and easy additional service for you.
- Proprietary Product Line: The company also offers its own shampoos, conditioners and styling products, giving it an additional source of earnings as well as strong brand identity.
Target Market: The market that Fantastic Sams serves is wide, made up of people and families who value fast, affordable and excellent hair care. Main segments of the industry involve:
- Primary Target: Females aged 25-55: Females aged 25 to 55, who usually decide on hair care products for everyone at home. Consumers want to receive value, good service and convenience.
- Secondary Target: Males and Children: Men and children enjoy visiting since there are so many grooming options and they can bring back everything from one place.
- Budget-Conscious Consumers: Families and individuals who enjoy the experience of a professional salon but want to save a little money are attracted to Fantastic Sams.
Unique Selling Propositions (USPs): Several reasons make Fantastic Sams different and unique in its line of business:
- Full-Service Offering: Fantastic Sams offers more services than many discount hair places which helps each customer spend more.
- No-Appointment Necessary (Original Concept): While it’s popular now to book salon appointments online, Fantastic Sams was the first to give busy people the ease of a walk-in service.
- Affordable Luxury: The brand gives the best services with reasonable prices, making it popular among a diverse crowd.
- Established Brand Recognition: Nearly 50 years in the industry have built a known and trusted brand for Fantastic Sams.
- Proprietary Product Line: The launch of proprietary products makes the customer experience better, encourages loyalty to the brand and gives franchisees another important source of high-profit income.
Why Choose Fantastic Sams Franchise in 2025
Having a Fantastic Sams in 2025 is attractive for a number of reasons.
- Resilient Industry:Due to its strong stability, the hair care industry does not experience major changes in tough economic times. Services for hair care are always in demand because hair never stops growing.
- Established Brand with Longevity: For nearly 50 years, Fantastic Sams has been recognized by many. Recognition in this way allows a business to create instant trust and credibility with its customers.
- Proven Business Model: Because of its established system, franchisees are protected from the risks common to independent start-ups.
- Comprehensive Service Offering: Because the business provides all the primary services, it gains additional streams of income and can support more clients which could lead to larger than usual average transactions.
- Scalability and Multi-Unit Potential: Because the franchise model can be enlarged, anyone ready to expand can open several salons once their first one succeeds.
Fantastic Sams Franchise Cost: Understanding the Investment
You must clearly understand what it will cost to start a franchise before getting involved. The cost of starting a Fantastic Sams depends on things like the area, salon size and the area’s market.
A: Initial Investment Breakdown: Typically, to use the franchise brand name and system, the entrepreneur must pay a single Franchise Fee to the franchisor. Latest estimates indicate that the number ranges from $30,000 to $40,000. Those who are veterans can get a special deal on their bill.
- Franchise Fee: By renovating or fitting out the leased area to match Fantastic Sams’ standards, Leasehold Improvements cover the costs for these upgrades. How much it will cost for build-out can vary from $30,000 to $100,000 or above, depending on the state of the existing space and the work involved.
- Leasehold Improvements: Styling chairs, shampoo bowls, dryers, reception desks, mirrors and important salon furniture are part of this. Most estimates put this type of renovation between $35,000 and $40,000.
- Salon Equipment: At the beginning, stock the salon with both professional products for haircuts and hair treatments and products to be sold to clients. It’s often in a range from $8,000 to $13,000.
- Initial Product Inventory: Advertising and promotion funds used to promote the salon during its first days. You should expect to spend between $15,000 and $18,000 on this.
- Grand Opening Marketing: The technology system includes point-of-sale (POS) machines, scheduling software and additional tools needed. The amount required might fall somewhere between $1,000 and $2,500.
- Business Licenses and Permits: The money you need to pay for any local, state and federal licenses and permits that let you operate your salon.
- Additional Operating Funds (Working Capital): Covering expenses in the first several months such as employee wages, utilities, rent and supplies, is best handled using Extra Operating Funds. Usually, estimates put these funds between $30,000 and $50,000.
Startup investments can cost from about $169,000 to more than $462,000. As a result, it’s very important to check the FDD for the latest and best data.
B: Financial Qualifications Required: Franchisors sometimes check that potential franchisees fit the financial requirements to guarantee they are financially able. Let’s look at Fantastic Sams:
- Liquid Capital Required: This amounts to the cash or other assets that can be turned into cash without much difficulty. Most of the time, you must have liquid capital of between $50,000 and $150,000 for a Fantastic Sams franchise.
- Net Worth Required: You need to have a Net Worth Required amount which is your assets minus your liabilities. Most Fantastic Sams outlets ask that their franchisees have a net worth ranging between $300,000 to $500,000.
- Equity Contribution: Often, those wanting to open a franchise must contribute about 20% of the total required investment from their personal funds.
C: Ongoing Fees: Franchisees remain responsible for making ongoing payments to the franchisor after they have made their first investment.
- Royalty Fee: This fee is paid regularly, generally a portion of your gross sales, to the franchisor for letting you keep the brand name and use their set business systems. Gross sales bring in a 6% royalty fee or an approximate amount of $362 a week, depending on the contract details in Fantastic Sams.
- Advertising/Marketing Fee: The money from an advertising/marketing fee goes to a national or regional advertising fund to assist in marketing the brand and running various advertising campaigns. The weekly advertising fee for Fantastic Sams is about $146 or 5% of the store’s gross sales.
- Other Potential Fees: It will also let you know if there are additional regular fees for things like technology, moving the contract, renewals or more training.
Support, Training Provided By Fantastic Sams
Fantastic Sams offers a wide range of assistance to their franchisees because they understand that these people often lack partsolon experience.
- Initial Training Programs: Training in this stage covers the main areas needed to run a salon such as planning the business and studying its performance, marketing efforts, working with employees, client service, shop operations and finances. Usually, training covers things you learn in class, on computers and during actual work experience.
- Site Selection and Lease Negotiation Assistance: When selecting a place for the franchise and negotiating the lease, the franchisor can guide the franchisees to areas with good location and send suggestions for fair terms.
- Construction and Design Guidance: Sometimes, an in-house construction manager works on the development, from the design drawings to the actual building, to maintain brand consistency.
- Ongoing Consulting and Field Support: Typically, once a franchisee has joined, they continue to receive help and guidance from franchise consultants or field staff at any time.
Essential Steps Before Investing
Preparing for a Fantastic Sams franchise needs thorough reflection and investigation at the start. Successful investment in renewables takes both a major financial commitment and long-term devotion which means you have to make careful decisions.
- Self-Assessment: Are you trying to make day-to-day decisions or be only occasionally involved in running your business? Fantastic Sams can do both, yet what you personally like will shape the way you choose to cut your hair. Be sure to check your liquid assets and net worth so that you qualify financially in the eyes of the franchisor.
- Conduct Comprehensive Market Research: Look at the demographics of the target area to confirm that they fit with the typical Fantastic Sams customer, who is a family concerned about costs.
- Speak with Existing and Former Franchisees: Talking to current and former franchisees is one of the best things you can do. The FDD gives you a list. Connect with as many people as you can. Enquire about their general satisfaction, estimate their total expenses, judge how profitable their business is, find out what challenges they face, how the franchisor helps them and what it’s like to run their business each day.
- Consult Financial and Legal Professionals: Have a lawyer in franchise law go over the FDD and franchise contract to make sure everything is clear, before you sign anything. They know what to look for and can make you aware of what you can and cannot do.
- Develop a Robust Business Plan: You need a business plan, even with a franchise business. It must contain an analysis of the market, strategic operations, marketing plans, financial predictions and staff plans.
Is a Fantastic Sams Franchise the Right Fit for You?
When you invest in a Fantastic Sams franchise, it should be because your ambitions, your finances and your capabilities fit well with what the brand requires.
You may consider it if:
- You want to invest in a company that has been around for years and known for providing hair care. This makes you feel your investment is safe.
- Managing people, business processes and serving customers are your best skills for this job.
- If you are looking for a set way to work and use official processes, franchising fits your needs better than trying something new.
- You have ambitions beyond one salon, so you will find Fantastic Sams’ expansion options ideal for your goals.
- Having full assistance and training helps: No matter if you’re a novice or expert, support and training are important.
- You must have the recommended level of finances: This part of the application process cannot be ignored.
It might NOT be the right fit if:
- You want to make all the decisions: Building a company from scratch allows you to make every decision, but the rules may be tight with franchising.
- Missing key elements in the business plan can mean you fail to secure all the funding required and experience a lot of worries and trouble in the early months.
- You would like to take a functional role in the business, as it still needs to be actively managed or supervised.
- You’re not happy with how much effort is needed: Effective salon management means continual attention to stylists and their work.
- If you haven’t done a deep research on the local market, you may face difficulties in making a profit.
Conclusion
Fantastic Sams has long been offering a proven opportunity to those looking to join the hair care industry. In the fifty years it has operated, Great Clips has become a trusted choice for finding affordable, complete hair care for families all over North America. This area of business grows every year, with the U.S. hair salon market being worth $49.7 billion in 2023.
Anyone interested in a Fantastic Sams franchise gets to use its world-famous trademark, explore a complete range of hair and beauty choices and utilize a model that has been successful in providing affordable luxury.
Though the upfront cost can be from $169,000 to $462,000 and you must have from $50,000-$150,000 in liquid cash and $300,000-$500,000 in total assets, the franchise’s profitability attracts people interested in the franchise.
With the help of Dessange Group North America, franchisees have the tools necessary to succeed in a tough industry. Even so, achieving success isn’t automatic and needs business knowledge, steady leadership, local advertising and persistence in keeping customers happy.
FAQs
Do I have to work in a salon before I open a Fantastic Sams business?
Actually, having experience in a salon is not needed for Fantastic Sams. Those hired need strong business and customer service skills, as everything is trained in the business.
How much money does a Fantastic Sams salon usually make each year?
Recent industry data shows that the typical Fantastic Sams franchised salon makes about $262,000 in AUV, yet this figure can change depending on both location and management.
What are the main expenses that a Fantastic Sams franchisee must cover regularly?
Usually, franchisees give a fee of about 6% of each week’s gross sales and also an advertising/marketing fee of approximately 5% of that total.
Why is Fantastic Sams not like the other hair salon franchises?
Fantastic Sams is different because it provides all salon services (haircuts, hair color, styling, waxing and unique products) at a fair price, making “affordable luxury” easy to access and well recognized.
