I think you've misunderstood what fssnap does.
It doesnt take dumps of a filesystem.
It provides a mechanism for accessing a "frozen" view of a filesystem so you can do a dump without things changing while you do it.
So you need to make a snapshot using fssnap.
Then dump out the snapshot using ufsdump or tar.
fssnap needs a place to put its backing store which contains info on changes that have been made to the FS since the snapshot was taken.
It can't be on the FS being snapshotted. So for example you might mount some disk as /backups and put it there.
So to make a dump of / to /backup/snap.DAY
#ufsdump 0uf /backup/snap.`date +%A` `fssnap -F ufs -o raw,bs=/backup /`
<output from ufsdump>
# delete the snapshot
# fssnap -F ufs -d /