SOURCE: Fantastic Sams

Fantastic Sams

December 29, 2015 13:47 ET

Financing Available for New Fantastic Sams Franchise Locations

From Startup Costs to Payment Processing, New Programs From The Bancorp Will Help Fantastic Sams Salon Franchise Owners Start Off Right

BOSTON, MA--(Marketwired - Dec 29, 2015) - New financing programs from franchise lender The Bancorp and other preferred sources will help entrepreneurs realize their dream of owning a Fantastic Sams salon franchise.

The partnership between Fantastic Sams and The Bancorp will take the form of a Preferred Lending Program for all salon startup costs, as well as another program for best-in-class, PCI-compliant credit card processing, which means the salons will be able to handle new, chip-embedded credit and debit cards.

"We are so pleased to be working with The Bancorp, because it means that a well-known and trusted lender sees the value of a Fantastic Sams salon franchise opportunity," said Linda Chadwick, president and CEO. "There are lots of ways to finance a new franchise, but being able to partner with a lender who has years of experience in this area, and who can help with payment processing as well, is a very solid way to make it happen."

Fantastic Sams was the first nationally franchised hair salon and has grown to more than 1,100 locations over the past 40 years. Unlike discount haircut franchises, Fantastic Sams offers a full range of salon services, including haircuts and trend-right styles, color and waxing -- which helps generate higher tickets and margins. Fantastic Sams invented the no-appointment-needed hair salon and continues to be an industry leader.

Scalable relationship will propel future growth
The Bancorp's national reach means that it can work with Fantastic Sams salon franchise owners anywhere in the country and also work with them as they expand to open multiple units in one market, or in different markets. 

"Many of our franchise partners open several salons, so scalability is a very big deal for us," Chadwick said. "The Bancorp handles that beautifully, because once they have a relationship with an owner, they are able to help that person grow his or her business. It's just another reason why they are such a good partner for us."

The Bancorp's years of experience in franchising is a huge asset. Many potential Fantastic Sams salon franchise owners often pursue financing with their local banks, but they hit roadblocks because the banks don't have loan officers or anyone on staff who understands the unique business structure of a franchise operation.

"Even if there are no credit issues and there's a prior relationship, the banks sometimes say no to a loan because they don't understand how royalty payments and other franchise elements work," Chadwick explained. "That's not a failing of the bank, or the individual. This is a specialized business model, and The Bancorp knows it inside and out. They are wonderful to work with, as our owners will be finding out, because they can answer questions right away and make the process seamless and easy."

The payment processing aspect, she added, is another major benefit.

"They can handle ACH, or automatic clearing house, processing, which includes collecting royalties and paying for marketing and other franchise obligations," she said. "That means that there's one common payment architecture to support the entire business."

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