Fantastic Sams franchise cost: investment, fees and the SBA default rate
Items 5, 6 and 7 · Fantastic Sams FDD 2026 · Updated 2026
A Fantastic Sams franchise costs $162,500–$453,000 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $35,000 (Item 5); the ongoing royalty is 6% of sales (Item 6). On the lending side, Fantastic Sams franchisees defaulted on 28.6% of SBA 7(a) loans approved FY2010–FY2019 (30 of 105), and the average SBA loan to a Fantastic Sams franchisee in that cohort was $184,729.
| Total initial investment (Item 7) | $162,500–$453,000 |
|---|---|
| Initial franchise fee (Item 5) | $35,000 |
| Royalty (Item 6) | 6% of sales |
| SBA 7(a) default rate, FY2010–FY2019 | 28.6% |
| Average SBA loan, 2010s cohort | $184,729 |
| Average SBA loan since 2020 | $411,938 |
| Industry | Beauty Salons |
How much does it cost to open a Fantastic Sams franchise?
Item 7 of the FDD estimates the total initial investment at $162,500–$453,000. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Covers one salon under a single Franchise Agreement; a separate Item 7 table covers the three-salon Multi-Unit Development Agreement.
What does the SBA data add?
The federal loan record adds what the FDD cannot: Fantastic Sams franchisees defaulted on 28.6% of SBA 7(a) loans approved FY2010–FY2019 (30 of 105 resolved loans), against the Beauty Salons industry average of 8.6%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 8 new SBA loans, of which 0 have already charged off.
Set the investment range against the loans: an average SBA loan of $184,729 against the $162,500–$453,000 investment range says roughly how much of a typical Fantastic Sams opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.
What would Fantastic Sams's royalty and ad fund cost at your sales level?
From Item 6: royalty 6% of sales. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, are not included.
| Annual sales | Royalty |
|---|---|
| $250,000 | $15,000 |
| $500,000 | $30,000 |
| $1,000,000 | $60,000 |
| $2,000,000 | $120,000 |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Frequently asked
How much does a Fantastic Sams franchise cost?
A Fantastic Sams franchise costs $162,500–$453,000 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $35,000 (Item 5); the ongoing royalty is 6% of sales (Item 6). On the lending side, Fantastic Sams franchisees defaulted on 28.6% of SBA 7(a) loans approved FY2010–FY2019 (30 of 105), and the average SBA loan to a Fantastic Sams franchisee in that cohort was $184,729.
What is the Fantastic Sams franchise fee?
$35,000, per Item 5 of the FDD.
What royalty does Fantastic Sams charge?
6% of sales, per Item 6.
What is Fantastic Sams's SBA loan default rate?
28.6%: 30 of 105 SBA 7(a) loans approved FY2010–FY2019 to Fantastic Sams franchisees were charged off.
Source
Sources: Fantastic Sams Franchise Disclosure Document (2026, Wisconsin DFI filing 641354); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Cite this page
Franchise Failure Rates (2026). Fantastic Sams franchise cost, Items 5–7, and SBA 7(a) default rate. From the Fantastic Sams FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/fantastic-sams/cost/ · Data & methodology