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Fantastic Sams Franchise Cost & Fees

Date of Incorporation: 1974

Franchising Since: 1976

Headquarters: Beverly, Massachusetts


Business Description: Fantastic Sams Salons Corporation (FSFC), the franchisor, grants franchises to own and operate “Fantastic Sams” haircare salons. Fantastic Sams salons provide a full range of haircare products and services to men, women and children.


Franchise Offer: The franchisor grants the right to open and operate one “Fantastic Sams” haircare salon, and/or (ii) multi-unit development agreement that grants the right to develop an agreed upon number of salons within a protected-development area.


Financial Assistance: Neither FSFC nor Salons Corp offers direct or indirect financing. Salons Corp does not guaranty a franchisee’s note, lease or other obligation. Licensees of the System are eligible for expedited and streamlined SBA loan processing through the SBA Franchise Registry Program.


Training and Assistance: The training consists of certain classroom and on the job training. The owner and manager classes consist of a minimum of 5 days of training, which are held approximately 4 times per year. Hair stylist training is held throughout the year at facilities established by Salons Corp and at other designated training facilities. Further, additional manager, owner and hairstylist training is given in regional seminars regularly held around the Salons Corp Regions. Each year Salons Corp will provide regional seminars for franchisees, their stylists and managers; further annually, there will be voluntary hairstyling seminars for stylists.


Territory: Franchisees will not receive an exclusive territory. FSFC will designate a limited protected area equal to a one-half mile radius of the Salon location. This means that neither FSFC nor Salons Corp will open, or allow another licensee to open, a Fantastic Sams salon within the Protected Area.


Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the salon is opened or 11 years from the date of execution, whichever is earlier. If requirements are met, renewal is for 1 additional 10-year term.


Obligations and Restrictions: Franchisees must at all times retain and exercise management control over the salon, unless Salons Corp approves otherwise. While the License Agreement does not require franchisees to participate in the direct, day-to-day operations of the salon, the franchisor recommends that franchisees become personally involved in the operation of the business. Franchisees will sell only goods or services which have been approved by FSFC and Salons Corp. Franchisees may only perform haircare services for customers. Franchisees may not perform nail or makeup services.


Estimated Number of Units: 1,155


Investment Tables:

Initial Investment

Name of Fee Low High
Initial License Fee $30,000 $30,000
New Owner/SFC Training Fee $1,000 $2,000
Travel and Living Expenses For Franchisees and Their Employees During Training $1,500 $3,000
Leasehold Improvements (including architectural fees) $30,000 $80,000
Rent $1,600 $7,000
Utility Deposit $500 $1,500
Initial Haircare Product Inventory (3 month supply) $8,000 $14,000
Salon Equipment $18,000 $35,000
Utility Expenses $1,000 $5,000
Other Equipment, Fixtures, and Furnishings $5,000 $15,000
Salon Supplies - Non Technical(3 month supply) $2,500 $4,500
Salon Identity and Graphics Kit (interior graphics) $2,500 $4,500
Insurance $1,000 $2,500
Advertising (first 3 months) $7,500 $15,000
Additional Funds - 3 months $30,000 $50,000
Estimated Total $137,100 $261,500


Other Fees

Type of Fee Amount
Weekly License Fee $345.76
National Advertising Fund Fee $137.44 per week.
Regional Advertising Fund Fee Varies depending on Licensee Council decisions. Current fees range from $15.00 to $199.46.
Assignment Fee $7,500 or 25% of the then current Initial License Fee, whichever is greater.
Renewal Fee $7,500 or 25% of the then current Initial License Fee, whichever is greater.
Finder's Fee $5,000 or 5% of total consideration.
Attorneys' Fees Varies.
Non Reporting Fee $20 per week, per salon.
Indemnification Will vary with circumstances.

The above information has been taken from the FDD of Fantastic Sams. Year of FDD: 2015

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