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Fantastic Sams

With its principled adherence to the idea that every guest should be greeted with “honesty, integrity and responsiveness,” Fantastic Sams has established itself as one of the most exciting brand images in the booming multibillion-dollar hair care industry. Hailed as a convenient one-stop shop for women, men and children of all ages, Fantastic Sams’ salons provide a wide range of quality treatments—from cuts to colors—at an affordable price without the need for appointments. In addition, Fantastic Sams provides its own high-quality proprietary line of shampoos, conditioners and treatment products; as well as a separate line of products specifically formulated for men.

Fantastic Sams serves over half-a-million guests per week in more than 1350 salons in North America. With over 30 years of business and franchising experience, it is one of the most recognized names in the hair care industry today.

Operating Units	12/31/2005	12/31/2006	12/31/2007
Franchised	1,200	1,196	1,230
% Change	--	-0.3%	2.8%
Company-Owned	155	160	137
% Change	--	3.2%	-14.4%
Total	1,355	1,356	1,367
% Change	--	0.0%	0.8%
Franchised as % of Total	88.56%	88.20%	89.97%

Investment Required

The license fee for a Fantastic Sams franchise ranges from $25,000 to $30,000.

Fantastic Sams provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.

Item	Established Low Range	Established High Range
Franchise Fee	$25,000	$30,000
New Owner/SFC Training Fee	$0	$2,100
Training Expenses	$1,500	$3,000
Leasehold Improvements	$20,000	$75,000
Rent and Utility Deposit	$3,000	$8,750
Initial Haircare Product Inventory (60 days)	$8,000	$12,000
Salon Equipment	$20,000	$30,000
Other Equipment, Fixtures, and Furnishings	$3,000	$7,000
Salon Supplies (60 days)	$2,500	$3,500
Salon Identity and Graphics Kit	$1,500	$2,500
Advertising (first 90 days)	$7,500	$15,000
Insurance	$1,000	$2,000
Additional Funds (3 months)	$20,000	$40,000
Total Investment	$113,000	$230,850

On-going Expenses

Fantastic Sams franchisees pay a fixed weekly royalty fee that varies by region and a national advertising fund fee of $122.43 per week. Additional expenses include regional advertising fund fees and tanning service-related fees when applicable.

What You Get—Training and Support

Fantastic Sams' new owner training program, Salon Fundamentals, is a one-week course that instructs new franchisees in guest relations, employee management, marketing and advertising, technical knowledge, retailing and business management. Other programs support salons with their grand opening and marketing, research and development, and computer management. Additional programs, including Salon Management 101 and 201, will coach managers in improving everyday tasks such as scheduling appointments and managing staff meetings. A key to the company’s success is Fantastic Sams University, which is devoted to recruiting and training stylists and keeping them up-to-date in the most fashionable hair-styling techniques.

A staff of over 60 professional instructors offer on-going support in operations, products and promotions. National conferences play a key role in motivating franchisees, allowing them to network and obtain further training. The Fantastic Sams name is given fresh exposure annually through coordinated efforts in national and regional advertising campaigns.

Territory

Fantastic Sams grants a protected area within a ½ mile radius of the salon location.



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