Fantastic Sams Franchise Costs, Fees & FDD

Year Business Began: 1974

Franchising Since: 1976

Headquarters: Maple Grove, Minnesota

Estimated Number of Units: 510

Franchise Description: The franchisor is Fantastic Sams Franchise Corporation. The franchisor grants franchises to own and operate “Fantastic Sams” haircare salons. Fantastic Sams salons provide a full range of haircare services for men, women, and children, including cuts, shampoos, styles, perms, and color treatments. Additionally, salons will sell a complete line of haircare products. However, salons may not offer manicure or pedicure services, tanning services, body piercing, tattooing, eyelash extensions, or body massage services.
Training Overview: The franchisor will provide training to the franchisee (or one of the owners) and the designated salon manager. The training consists of certain classroom and/or virtual and on-the-job training. The owner and manager classes consist of three to five days of classroom and/or virtual training. The content of the stylist training consists of hairstyling techniques, sales training, thorough indoctrination in the system and motivational development. The content of the manager and owner training consists of an in-depth discussion of the history, development and operation of the system, explanation of the accounting system, inventory control, other financial management techniques, advertising, sales, promotion, market study and other marketing plans, customer relations and practical experience in the operation of a haircare center. The franchisor will provide the additional training it determines, including conventions, seminars and meetings.

Territory Granted: After execution of the Franchise Agreement and after locating and obtaining approval of a site for the salon, the franchisor will designate the franchisee’s limited protected area. In most areas, the protected area will be equal to a half mile radius of the salon location, but in certain urban, densely populated areas franchisees may get a smaller protected area. This means that the franchisor will not open, or allow another franchisee to open, a Fantastic Sams salon within the protected area.

Obligations and Restrictions: Franchisees must at all times retain and exercise management control over the salon, unless the franchisor approves otherwise. While the Franchise 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, or all owners if the franchisee is an entity, must personally guarantee all the obligations which may arise out of the operation of the salon. Franchisees will sell only goods or services which have been approved by the franchisor. Franchisees may only perform haircare services for customers. Franchisees may not perform nail or makeup services, body piercing, eyelash extensions, tattooing or body massage services or esthetician/skin care services, including but not limited to facials, peels, filler injections, acne treatments, etc.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the effective date of the agreement. If requirements are met, renewal is for one additional 10-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guaranty a franchisee’s note, lease or other obligation. If franchisees are an honorably discharged veteran who meets the qualifications for new franchises, the franchisor will discount the initial franchise fee by 25%.

Estimated Initial Investment

Name of Fee	Low	High
Initial License Fee	$40,000	$40,000
Travel and Living Expenses for Franchisees and Their Employees During Training	$1,500	$3,000
Leasehold Improvements (including architectural fees)	$30,000	$250,000
Rent	$1,500	$7,000
Utility Deposit	$500	$1,500
Initial Salon Supply Haircare Product Inventory	$10,000	$15,000
Salon Equipment	$35,000	$55,000
Other Equipment, Fixtures, and Furnishings	$2,000	$4,000
New Salon Signage	$7,500	$15,000
Grand Opening Marketing Plan/Advertising	$10,000	$15,000
Insurance	$3,500	$6,500
Additional Funds	$30,000	$50,000
ESTIMATED TOTAL	$171,500	$462,000

 
Other Fees

Type of Fee	Amount
Weekly Franchise Fee	The weekly franchise fee will be as follows (i) $150 per week during the first 26 weeks after the opening of the salon, and (ii) for the reminder of the term, the greater of $350 per week or 6% of the salon’s gross sales during the preceding week.
National Advertising Fund (NAF) Fee	Currently, $146.49 per week.
Regional Advertising Fund (RAF) Fee	Varies depending on the geographic area in which the salon is located. For regional marketing areas that have a RAF fee, the current RAF fees range from $15 to $175.
Technology Fee	Currently, $150 per year.
Transfer Fee	$7,500 if transferee is an existing franchisee. If the transferee is new to the franchisor, the transfer fee is $30,000.
Renewal Fee	$1,000
Training / Conference Fees	Currently, $500 per day plus the franchisor’s expenses.
Costs and Attorney’s Fees	Will vary under circumstances.
Non Reporting Fee	$50 per week, per salon.
Noncompliance Fee	Up to $500 per incident.
Returned ACH Fee	$30 per week, per salon.
Indemnification	Will vary under circumstances.
Liquidated Damages	An amount equal to the average monthly fees payable by franchisees to the franchisor over the 12 month period immediately preceding the date of termination multiplied by the lesser of 36 months or the number of months remaining in the term.

The above information has been compiled from the FDD of Fantastic Sams. Year of FDD: 2025.
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