About Fantastic Sams - Standard Franchise
Fantastic Sams is one of the longest running haircare salon franchises in the United States, offering franchise opportunities since 1976 under parent company Dessange Group North America, Inc.
(DGNA).
With franchise fees ranging from $10,000 to $30,000, the brand provides an accessible path into the salon franchise market for entrepreneurs at various investment levels.
Fantastic Sams - Standard Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $10,000 - $30,000 | One-time payment upon signing |
| Royalty Fee | $150 per week (first 26 weeks), then greater of $250 per week or 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | National Advertising Fund Fee: Currently, $146.49 per week; Regional Advertising Fund Fee: Varies, currently $15.00 to $175.00 per week | National brand fund |
| Total Investment Range | $139,000 – $301,000 | Includes build-out, inventory, working capital |
The investment range of $139K–$301K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($150 per week (first 26 weeks), then greater of $250 per week or 6% of Gross Sales) and marketing fee (National Advertising Fund Fee: Currently, $146.49 per week; Regional Advertising Fund Fee: Varies, currently $15.00 to $175.00 per week) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Travel and Living Expenses For You and Your Employees During Training | $1,500 | $3,000 |
| Leasehold Improvements (including architectural fees) | $0 | $100,000 |
| Rent | $1,500 | $7,000 |
| Utility Deposit | $500 | $1,500 |
| Initial Haircare Product Inventory (3 month supply) | $8,000 | $13,000 |
| Salon Equipment | $35,000 | $40,000 |
| Other Equipment, Fixtures, and Furnishings | $6,000 | $10,000 |
| New Salon Signage | $5,000 | $15,000 |
| Salon Supplies - Non Technical (3 month supply) | $3,000 | $4,000 |
| Salon Identity and Graphics Kit (interior graphics) | $1,000 | $3,000 |
| Grand Opening Marketing Plan/Advertising (first 6 months) | $15,000 | $18,000 |
| Insurance | $3,500 | $6,500 |
| Additional Funds - 3 Months | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $1,000 |
| Technology Fee | Currently, $150 per year |
| Audit Fee | Varies (conditional, if audit is necessary due to failure to provide information or understatement of Gross Sales by more than 2%) |
| Networking Fee | Currently, $150 per year |
| Ongoing Training Fee | Currently, $500 per person per day |
| Attorney's Fees | Varies (on demand, if franchisor hires due to franchisee breach) |
| Non Reporting Fee | $50 per week, per Salon |
| Returned ACH Fee | $30 per week, per Salon |
| Indemnification | Will vary under circumstances (on demand) |
| Liquidated Damages | An amount equal to the average monthly fees payable over the 12-month period preceding termination, multiplied by the lesser of 36 months or remaining term (or $1,000 per month if Salon not opened) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3-5 days of classroom and/or virtual training for owners and managers. Total 14-28 hours for New Owner Onboarding Agenda and Salon Fundamentals. |
| Classroom Training | 14 – 28 |
| On-the-Job Training | 0 |
| Training Location | At our offices in Woburn, MA (or an alternative location) or virtually |
| Additional Training | Additional, optional training is available upon request. The franchisor may require owners, Designated Salon Managers, or other designated employees to attend additional training, including conventions, seminars, and meetings. If a franchisee owns six or more salons, they may be required to hire a full-time technical educator and designate an existing salon as a training center. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Typically a half-mile radius from the Salon location, potentially smaller in densely populated urban areas. |
| Description | Franchisees receive a limited protected area (typically a half-mile radius, potentially smaller in urban areas) where the franchisor will not open or allow another franchisee to open a Fantastic Sams Salon. However, the franchisor reserves the right to grant franchises and operate salons outside this protected area, and franchisees may face competition from company-owned outlets or other channels of distribution. For multi-unit development agreements, the development area is non-exclusive, and the franchisor may compete within it. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 1 additional 10-year term |
| Renewal Fee | $1,000 |
| Renewal Conditions | To renew, franchisees must give 180 days' written notice, be in full compliance with the Franchise Agreement and all monetary obligations, complete any new training, sign a new Franchise Agreement (which may have materially different terms and fees), sign a general release, and make capital expenditures to remodel/modernize the Salon to current image standards. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Transfer requires franchisor's prior written consent, which will not be unreasonably withheld if conditions are met. Conditions include approval of the proposed assignee (meeting financial and business aptitude standards), payment of all outstanding debts to the franchisor and approved suppliers, payment of the transfer fee, execution of a general release by the transferor, execution of the then-current Franchise Agreement by the transferee (potentially with different terms/fees), attendance of initial training by the transferee or Designated Salon Manager, and updating/remodeling the Salon to current image standards. |
| Termination for Cause | The franchisor may terminate for material defaults, including: breach of agreement, failure to pay amounts owed, improper use of marks, failure to pass inspections, failure to execute collateral assignment of lease, failure to maintain a Designated Salon Manager. Immediate termination can occur for non-curable defaults such as materially impairing System goodwill, abandonment, material misrepresentation, criminal misconduct, repeated defaults, breach of confidentiality, bankruptcy, or unauthorized transfer. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise agreement and for a period of 2 years after termination or expiration, franchisees (and their immediate family members, shareholders, etc.) may not directly or indirectly participate in any haircare business within a 5-mile radius of their Salon (including the Salon Location) or within two and one-half miles of any other Fantastic Sams Salon. They must also refrain from interfering with the franchisor's relationships with customers, vendors, or consultants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While the Franchise Agreement does not require the franchisee to participate in the direct, day-to-day operations of the Salon, it is recommended. Franchisees must at all times retain and exercise management control over their Salon and appoint a Designated Salon Manager (an owner or employee) responsible for day-to-day operations. The Designated Salon Manager must attend and successfully complete initial training. |
| Required Suppliers | Franchisees must purchase Fantastic Sams branded haircare products (FS Branded Products) from approved distributors. Approved national brands of haircare products (National Brand Products) must be purchased directly from the manufacturer or approved distributors. For new salons, furniture, fixtures, approved salon equipment, products, and supplies (including computer software, hardware, and POS system) must be purchased from suppliers on the approved supplier list. |
| Supply Restrictions | Franchisees may not sell FS Branded Products, National Brand Products, or FS Accessories from any location other than their Fantastic Sams Salon without prior written consent, nor offer or sell them at wholesale, via catalog, or over the internet without prior written consent. The franchisor may limit the number of suppliers/brands and designate certain products/materials/supplies as available only from one source (which may be the franchisor or its affiliates). |
| Franchisor Revenue from Suppliers | During fiscal year 2022, the franchisor and its affiliates did not receive revenue from direct sales/leases to franchisees. However, they reserve the right to receive a commission or rebate (10%-60%) from franchisee purchases of hair products, salon furniture, fixtures, and equipment. Designated suppliers may also contribute to annual franchisee conventions ($4,000-$150,000 or 2% of aggregate net receipts), the Product Promotion Fund (2.55%-5% of aggregate net receipts), franchisee education programs (5% of aggregate net receipts), and an obsolete product allotment account (3% of net purchases). In 2022, the franchisor received $1,416,483 in revenue/commission from designated vendors/distributors, representing 12% of its total revenue of $11,801,498. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee franchisee notes, leases, or other obligations. |
Fantastic Sams - Standard Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Fantastic Sams - Standard Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fantastic Sams - Standard System Growth
Fantastic Sams - Standard currently operates 614 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 6 | 108 | 803 |
| 2021 | 4 | 106 | 701 |
| 2022 | 4 | 91 | 614 |
Transfers: 116 | Closures: 213
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Barclais CPA, LLC for year ending December 31.
Fantastic Sams - Standard Franchise — FAQ
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