The Top 5 Reasons

to Invest in a Hair Salon Franchise

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TOP 5 REASONS TO INVEST IN A HAIR SALON FRANCHISE FANTASTIC SAMS

Determining exactly what type of business to invest in is a problem entrepreneurs face on a daily basis. In a world with an attention span that tops out at 140 characters, there are few business options with more longevity than the hair care industry, and even fewer that can be

assured of ongoing demand for their services. Investors who choose to enter the hair care industry have the chance not only to fulfill the need for an essential service in the lives of the vast majority of consumers, but also to offer those consumers a host of luxuries.

Whether a customer enters a salon for their usual cut and style, in preparation for a job interview, to treat themselves, or to change up their image and try something new, the motivation is the same. They want to leave that salon looking and feeling good about themselves. Choosing to give their business to any beauty establishment requires a level of implicit trust. Franchise salons carry with them brand recognition and reputations that encourage a level of trust in potential customers. If their trust is rewarded with a great outcome, that customer is not only satisfied and more likely to generate repeat business, but is also a living, breathing billboard of endorsement for that salon.

Many franchise salons boast an increased level of service typical of higher priced salons and this, coupled with proven business models as well as training and support, can be the foundation of a very successful brand platform. Longstanding hallmarks of the industry, such as recession resistance, and current and projected growth trends have created an ideal environment for new investors to enter this thriving and dynamic industry.

Beauty is a Growth IndustryHair care is a $75 billion industry that continues to grow with the population. In an American Salon 2011 study, the majority of salon professionals stated they were either holding steady, getting better, or experiencing great business success and that was during a time of economic uncertainty.

A 2012 market research report from IBISWorld projects revenue growth at a rate of 3.3% a year through 2017 citing an “expected increase in per capita disposable income.” It

The Top 5 Reasons to Invest in a Hair Salon Franchise

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TOP 5 REASONS TO INVEST IN A HAIR SALON FRANCHISE FANTASTIC SAMS

is likewise reasonable to expect that customers finding themselves with more disposable income may opt to spend a little extra on high-end services that dynamic franchise salon owners can offer, including coloring, highlights and styling. The same report projects gains in industry profit from 5.5% in 2012 to an estimated 5.9% by 2017.

Meanwhile, an economic snapshot published by the Professional Beauty Association calls for job growth across the board in personal appearance positions, including an estimated 31% job growth for hairstylists, hairdressers and cosmetologists in the decade between 2008 and 2018. Projected job growth is a strong endorsement of revenue and profit growth projections. Entrepreneurs who invest in strong franchise salons are provided with ongoing tools to help their businesses grow and expand—a decided advantage with so much growth potential.

Recession ResistantLean times in any economy can lead consumers to cut back on certain expenditures, but personal care services, such as hair cuts, colors and styles impact customers’ everyday lives and remain a consistent need. A June 2011 economic snapshot of the salon and spa industry from the Professional Beauty Association pointed to steady growth over the preceding decade, the latter years of which were periods of extreme decline for many other industries.

In fact, that same report states that the salon and spa industry outperformed the overall private sector during the recession. Between the fourth quarters of 2008 and 2009, the national economy experienced a one percent decline in total private-sector business establishments. By contrast, the salon and spa industry lost only .1% during that same time, before rebounding to positive growth

well ahead of the total private sector.

Franchise salons are able to offer exceptional value and service allowing them the potential to not only maintain, but thrive, even during periods of economic downturn.

No Prior Industry Experience? No Problem!Entrepreneurs looking to break into the hair care industry need not have prior experience if they opt to invest in a franchise salon. More than 85% of Fantastic Sams current owners had no previous industry experience prior to opening their franchise salons. Opening a salon means owners have access to extensive, ongoing training for themselves and their employees. Often, owners can master their new business even while maintaining another career. Ongoing training and support in business management, operations, and marketing help new salon owners reach long-term financial goals and give owners the knowledge and flexibility they need to make the business work, no matter what.

Additional assistance with site selection, lease negotiations,

“Entrepreneurs who invest in strong franchise salons are provided with ongoing tools to help their businesses grow and expand—a decided advantage with so much growth potential.”

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TOP 5 REASONS TO INVEST IN A HAIR SALON FRANCHISE FANTASTIC SAMS

management training and human resource issues allows new owners to quickly learn the nuances of their business and navigate both start-up and ongoing business challenges. These unique advantages allow new franchise salon owners to jumpstart their business success by following proven business models and taking advantage of the expertise of those with whom they choose to partner with on a franchise model.

Easy to Operate Business ModelHair care franchises and beauty salon businesses are considered a sound investment because they require relatively modest start-up funds and are based on a proven, easy to operate business model. This proves especially true for those who invest in franchise salons. Established franchises will offer investors a long-standing, proven business model that they have optimized and refined over time. New owners benefit from the combined experience of those with whom they choose to go into business.

Likewise, expanding upon a recognizable and respected brand name means potential customers will recognize and expect the level of quality and services offered even before stepping into a newly opened salon. After they enter the salon they will be treated to the same level of service and product offerings they have come to expect from a familiar brand. From there, each owner can further build loyalty in customers by maintaining those standards in a warm and comforting environment

Popular Culture Breeds Beauty TrendsAs the old adage says, imitation is the highest form of flattery. Indeed, for as long as there have been trends, there have been trendsetters. From “Farrah” hair to the Rachel and Audrey Hepburn’s French pleat bun to Victoria Beckham’s pixie bob, popular culture never fails to provide a hot new look. Trends in hair care and style range well beyond the everyday cut. In recent years, hombre coloring has made a splash, while previously perms and any number of high-and-lowlight styles have been a must.

In fact, the demand for hair coloring and other advanced hair treatments have increased in recent years, particularly among baby boomers and younger people who follow fashion trends.

Being a part of an established brand with proven methods means franchise salon investors are well positioned to put their energy and that of their employees into staying on the cutting edge of what is trending, so they can keep their customers en vogue.

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TOP 5 REASONS TO INVEST IN A HAIR SALON FRANCHISE FANTASTIC SAMS

Why Franchise with Fantastic Sams?Entrepreneurs have many options to consider when it comes to finding the right franchise to invest in. While certain advantages of investing in an established franchise apply across the board, each brings its own philosophy and benefits to the table.

Fantastic Sams has been one of the world’s most reputable hair salon franchises for nearly 40 years. As a full-service brand with nearly 1200 salons spread across North America and a proven, industry-leading business model, Fantastic Sams has established a reputation of quality, style and service.

As Fantastic Sams franchisees, investors can count on profitable, exclusive and innovative brand products; extensive, ongoing owner, manager and stylist training, provided by a certified and dedicated training staff; in-depth support for site selection, lease negotiations, human resource management and marketing; all providing the foundation of an exceptional guest experience…not to mention the inviting and relaxing environment with an expanded service menu. Fantastic Sams also offers special programs that can help new owners lower their start up costs by as much as $15,000.

After so many years of operating a successful business, the minds behind Fantastic Sams have perfected the art of bringing new owners into the fold and setting them up to achieve their long-term professional and financial goals.

5 Reasons, One Great Business OpportunityWherever new owners decide to invest and pursue their new business venture, it’s hard to argue with the benefits of being a salon owner. Operating within an established franchise in an industry that is not only recession resistant, but experiencing growth is a recipe for success.

New owners of franchise salons are provided with training and support from proven industry leaders, meaning they can focus on growing their new business even while maintaining another career. Likewise, the continuing support franchisees receive positions new owners to react quickly to industry trends, innovate and ensure their employees are equipped to provide outstanding service, even in a rapidly growing and changing industry.

Take into account the easy to operate business models, relatively modest start-up funds and the ability for new owners to the field to jump in and find success in a familiar brand, and the question is no longer why invest in a franchise salon, but rather, why not invest in a franchise salon

References:Professional Beauty Association, “Economic Snapshot of the Salon Industry”, http://www.nysbsa.org/pdf/News_2011EconomicSnapshotoftheSalonIndustry.pdf

IBISWorld, Beauty Salon market research report summary, http://www.sbdcnet.org/small-business-research-reports/beauty-salon-2012

Fantastic Sams Franchises, “Why Sams?” http://www.fantasticsamsfranchises.com/why-sams-quality-service-style.php