A professional full-service hair care franchisor is eager to add a little style to the Greater Hartford area by opening 10 new units in the region over the next three to five years and as many as 50 across the state in the next decade.
Despite a gloomy economy and strict lending standards, executives at the Beverly, Mass.-based 1,300-unit chain say there is a demand for new Fantastic Sams Hair Salons.
“While many brands protected their spending in 2009, we continued to market, spend and grow our brand,” said Scott Colabuono, CEO of Fantastic Sams. “Even during this down-turned economy, there is opportunity.”
The demand for affordable in-salon services combined with the company’s investment model and owner support system continue to drive franchise inquiries, according to Colabuono.
“It was proven last year that our business model was recession resistant, in fact, many of our salon owners experienced revenue increases of up to 10 percent,” said Colabuono.
Franchisee Ken Poulton, a former truck driver, and his wife Rhonda, a hairstylist, opened a Fantastic Sams in Groton in 1999. The salon owner said business has grown at least 18 percent annually.
Poulton, 52, opened his first salon in New England in 1985, followed by two more units in Rhode Island. The franchisee said he plans to remodel the Groton unit next year and possibly sign a deal to open more locations around the state.
“It’s a relatively low-risk business because it provides a service everyone needs at a reasonable price,” said Poulton.
To help it tap into the $60 billion hair care market, the franchise has recruited the members of its executive team from other popular brands such as Burger King, Church’s Chicken, Dunkin’ Donuts and Pepsi.
Fantastic Sams opened 54 salons last year and has signed 50 new franchise agreements already in 2010. Bob Loffredo, regional director, says the company’s bullish strategy for growth includes opening 40 to 50 new units in Connecticut over the next 10 years.
Founded 36 years ago in Memphis, Fantastic Sams is best known in California, where it has 225 salons and is rapidly expanding.
The company targets shopping centers with established, popular anchors in metropolitan areas where Fantastic Sams has already built a significant brand presence. Stores average 1,000 to 1,400 square feet and generally include nine styling stations and three hairdryers.
Fantastic Sams competes with low- and moderately priced locally owned full-service salons.
The average initial investment to outfit and open a Fantastic Sams ranges from $90,000 to $200,000 and includes a fixed annual royalty fee. The hair care franchise doesn’t offer in-house financing, but the company networks with smaller banks on behalf of potential investors, said Loffredo.
