Fantastic Sams Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Fantastic Sams is a full-service hair-salon franchise offering cuts, color, and styling for the whole family at value prices. Franchisees run salons managing stylists, walk-in and appointment service, and retail products.
FranchiseVerdict summary · 2026
A Fantastic Sams franchise requires a total initial investment of $163K – $453K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $325K[2]. SBA 7(a) loans show a 22.2% charge-off rate across 537 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $163K – $453K
- 15th pct Personal Care…
- Avg gross sales
- $325K
- 5th pct Personal Care…
- Royalty
- 6.0%
- 10th pct Personal Care…
- Units
- 512
- 56th pct Personal Care…
- SBA charge-off
- 22.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $163K – $453K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $325K/year (median $301K).
- RISKVerdict C (Average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 22.2% across 537 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Fantastic Sams Franchise Corporation
- Parent company
- Fantastic Sams International Corporation (FSI Corp)
- Ultimate parent
- D. Participations SAS (French corporation)
- Predecessor
- Fantastic Sams Franchise Corporation (Old FSFC) and Fantastic Sams Distribution Corporation, merged into Fantastic Sams Salons Corp in 2015
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Kimberly Amadon
- Incorporated in
- Delaware
- HQ
- 6901 East Fish Lake Road, #140, Maple Grove, Minnesota 55369
- Auditor
- Malesys & Trost CPA PLLC
- Audited financials
- Franchisor revenue
- $9.1M
- vs $10.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- Dessange Franchising
- Fantastic Sams Advertising Management
- C.Alb Franchising
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Kimberly Amadon
- Headquarters
- Minnesota
- Founded
- 1974
- FDD year
- 2026
- States available
- 34
Can you afford it, and what does the money buy?
Entry cost runs 41% below the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Travel and Living Expense for New Owner On-Boarding and Trainingnot refundable | $2K | $3K | |
| Leasehold Improvements (including architectural fees)not refundable | $30K | $250K | |
| Rentnot refundable | $2K | $7K | |
| Utility Depositnot refundable | $500 | $2K | |
| Initial Salon Supply Haircare Product Inventorynot refundable | $10K | $15K | |
| Salon Equipmentnot refundable | $35K | $55K | |
| Other Equipment, Fixtures, and Furnishingsnot refundable | $2K | $4K | |
| New Salon Signagenot refundable | $8K | $15K | |
| Grand Opening Marketing Plan/Advertisingnot refundable | $10K | $15K | |
| Insurancenot refundable | $4K | $7K | |
| Additional Fundsnot refundable | $30K | $50K | |
| Total initial investment | $172K | $462K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $163K – $453K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $50K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 6.0%
- formula · typical 6–8%
- Ad fund
- National Advertising Fund (NAF) Fee currently $147.49/wee…
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $8K |
| Renewal fee | $1K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 59% below the personal care & beauty norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$68K
21.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.1 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Fantastic Sams unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
20%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Fantastic Sams units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$911K
on $4.6M purchase
Total debt
$3.6M
SBA $2.3M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $325K
- Per unit, per year
- Median gross sales
- $301K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- cohort
- Sample size
- 311 outlets
- vs category median 38 · large
- Range (low → high)
- $69K→$1.0M
- Cohort dispersion (min → max)
- Quartile band
- $156K→$542K
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 179 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $325K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 6.0% — below the Personal Care & Beauty average of 7.8%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -16.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty averages
How Fantastic Sams Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 512
- Opened
- 7
- Last reporting year
- Closed
- 30
- Terminated
- 9
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 22
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -16.6%
- Net unit change over 3 years
- 3-yr CAGR
- -16.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 10
- Terminated (3yr)
- 22
- Non-renewed (3yr)
- 7
- Transfers (3yr)
- 28
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 7.2%
- Owners selling to other franchisees
- Continuity rate
- 89.4%
- Units that stayed open
- Termination rate
- 6.0%
- Franchisor-initiated terminations
- Ceased ops
- 5.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Minnesota
States where the franchisor is registered to sell new franchises (FDD registration filings).
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 537
- Loan volume
- $74.9M
- Median loan
- $109K
- 50th percentile
- Charge-off rate
- 22.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 77.7%
- 5-yr charge-off
- 33.3%
- Loans approved 2021+
- Active lenders
- 136
- Defaults
- 97
- Typical loan rate
- 6.4%
- avg rate to borrowers
- Franchised industry avg
- 12.1%
- brand above franchise avg ↑
- Jobs supported
- 4,480
- 6.8 per loan
- Lender concentration
- 9%
- top lender's share
Borrower mix: 55% went to startups / new businesses, 45% to established operators
Franchise vs independent — in beauty salons, franchised businesses charge off at 12.1% vs 18.6% for independents — franchising is associated with 35% lower SBA default risk in this category.
Vintage analysis
Fantastic Sams charge-off rate by loan vintage
Top lenders financing Fantastic Sams franchisees
Showing 3 of 136 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Fantastic Sams's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 32-year lending trend
Instant access. No subscription.
A 22.2% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Fantastic Sams presents HIGH RISK due to declining unit count, unresolved litigation over disclosure accuracy, missing financial disclosure, and inability to demonstrate attractive returns on a substantial initial investment.
Litigation (Item 3)
1 pending arbitration (Fantastic Sams v. Yeretsyan, post-expiration non-compete, settled) and 5 prior actions: Linco/Martinez/Oppegaard (non-compete/trademark, settled with new franchise agreement); KAK Enterprises/Khan (non-compete, salon ceased operating); Eridon Enterprises/Hardaway (default/closure, counterclaims for breach/negligence/fraud, settled for $90,000 paid to franchisor); HopeWorks/Vasant (default/closure, counterclaims and separate CA state suit alleging misrepresentation, settled for $50,000 paid to franchisor); Halter/CMH Ventures (franchisee sought to invalidate non-compete, settled via amendment requiring franchisee to pay $25,000); F.S. Salons Sandy Springs/Stafford (non-compete violation, counterclaims for breach of contract/FTC Act/state consumer protection, settled for $53,500 paid to franchisor).
Largest disclosed settlement: $90,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Malesys & Trost CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 verdict
- 01MINORSystem declining 9.4% YoY with 512 units — significant contraction suggests weakening brand demand and franchisee profitability challenges
- 02MINOREight active legal actions including franchisor-initiated breach/non-compete cases and franchisee claims of disclosure deficiencies and misrepresentation — indicates trust breakdown and potential systemic issues
- 03MEDNet income not disclosed in Item 19 — inability or unwillingness to provide earnings data is major red flag for ROI transparency and may indicate poor franchisee performance
- 04HIGHOngoing litigation over disclosure adequacy suggests franchisor may have misrepresented opportunity to previous franchisees — risk of similar claims against new franchisee
- 05MINOR10-year term is long-duration commitment into a shrinking system with no clear growth strategy or turnaround narrative
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 1,150,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Termination groundsℹ | 19 |
| Curable defaultsℹ | 10 |
| Mandatory arbitration | Yes |
| Arbitration location | Wilmington, Delaware |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 6 |
View Item 3 litigation summary
1 pending arbitration (Fantastic Sams v. Yeretsyan, post-expiration non-compete, settled) and 5 prior actions: Linco/Martinez/Oppegaard (non-compete/trademark, settled with new franchise agreement); KAK Enterprises/Khan (non-compete, salon ceased operating); Eridon Enterprises/Hardaway (default/closure, counterclaims for breach/negligence/fraud, settled for $90,000 paid to franchisor); HopeWorks/Vasant (default/closure, counterclaims and separate CA state suit alleging misrepresentation, settled for $50,000 paid to franchisor); Halter/CMH Ventures (franchisee sought to invalidate non-compete, settled via amendment requiring franchisee to pay $25,000); F.S. Salons Sandy Springs/Stafford (non-compete violation, counterclaims for breach of contract/FTC Act/state consumer protection, settled for $53,500 paid to franchisor).
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 0 hrs
- Training location
- Maple Grove, MN (or alternative location) or virtually
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 4 mo
- From signing to launch
- Site selection
- franchisee_finds_franchisor_approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Item 20 · call current owners
Franchisee Contacts
447 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Fantastic Sams · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Fantastic Sams franchise?
The total investment to open a Fantastic Sams franchise ranges from $163K – $453K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Fantastic Sams franchise owners earn?
According to Item 19 of the Fantastic Sams FDD, the average gross sales per unit is $325K. The median is $301K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Fantastic Sams FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Fantastic Sams FDD and qualifies whose outlets they describe.
What is Fantastic Sams's franchise failure rate?
Based on SBA 7(a) loan data, Fantastic Sams has a charge-off rate of 22.2% across 537 loans, meaning 22.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Fantastic Sams franchise locations are there?
As of their most recent FDD filing, Fantastic Sams has 512 total units in the United States, including 512 franchised units and 0 company-owned units. 7 new units were opened in the latest reporting year.
Is Fantastic Sams a good franchise to buy?
FranchiseVerdict rates Fantastic Sams as a C-grade franchise with a verdict score of 55 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Fantastic Sams, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.