Palm Beach Tan Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$624,000

-

$1,009,000

LOCATIONS

546

Jennifer

Updated

April 11, 2024

Is

Palm Beach Tan

a franchise?

Yes,
Palm Beach Tan
currently
accepts
franchise
applications

Palm Beach Tan is a well-known franchise in the tanning and beauty industry, specializing in providing a sun-kissed glow and promoting skincare. Founded in 1990, this franchise is headquartered in Coppell, Texas, USA. What distinguishes Palm Beach Tan is its extensive network of tanning salons, offering a variety of tanning options, including sunbeds, spray tanning, and UV-free alternatives.

Palm Beach Tan's prominence in the tanning industry can be attributed to its commitment to providing safe and responsible tanning experiences. The franchise prioritizes skin health, educating clients about responsible tanning practices and offering a range of skincare products to protect and nourish the skin.

With a focus on customer satisfaction and promoting a healthy, bronzed appearance, Palm Beach Tan has become a trusted destination for those seeking professional tanning services and skincare solutions.

How many

Palm Beach Tan

franchises

are there?

In 2022, there were
546
outlets in
the United
States, of which
329
are franchises, and
217
are corporate-owned.

What are the

Palm Beach Tan

franchise

fees?

Advertising fee

5.50%

Initial Franchise Fee

A fee of $30,000 is required upon signing the Franchise Agreement.

Royalty Fee

For the first 12 months after the Opening Date, the royalty fee is 4% of Gross Sales. It increases to 5% of Gross Sales for the second 12 months, and from the 25th month through the end of the term, it is 6% of Gross Sales.

Advertising Fee

Franchisees are required to spend at least 5.5% of their Location’s Gross Sales on advertising. This includes a minimum of 3.5% on local advertising and a 2% contribution to the System advertising fund.

Transfer Fee

A fee of $5,000 plus reimbursement of reasonable costs and expenses is charged for transferring the franchise.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Palm Beach Tan

franchise?

It costs between
$624,000
and
$1,009,000
to start a
Palm Beach Tan
franchise.
Type of Expenditure Amount
Initial Franchise Fee $30,000
Leasehold Improvements $250,000 to $400,000
Prepaid Rent and Security Deposit $5,120 to $17,500
Furniture and Fixtures $50,000 to $75,000
Tanning and Related Equipment $165,000 to $325,000
Computer Hardware and Software $6,450 to $10,164
PBTv $99
Initial Inventory of Lotions, Solutions, and Supplies $10,500 to $13,000
Signage $6,700 to $15,800
Professional Services $15,000 to $20,000
Utility Deposits and Permits $60 to $5,200
Grand Opening $10,000
In-Location Merchandising Kit $3,000 to $4,000
Local Marketing Kit $2,000 to $3,000
Initial Training $2,500 to $4,500
Pre-Opening Training $2,000 to $4,000
Music System with Installation $2,500 to $3,500
Security System (includes CCTV system) $2,000 to $3,000
Insurance $1,500 to $5,000
Additional Funds (three months) $60,000
Total $624,429 to $1,008,763

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Palm Beach Tan

provide

training

to its

franchisees?

Yes,
Palm Beach Tan
provides
training

Palm Beach Tan provides a structured training program for franchisees. Here are the key aspects of the training provided:

Initial Management Training

  • The franchisor's management training program is mandatory for the Operating Principal, General Manager, and Store Manager before the opening date.
  • This initial training is provided at no additional charge, although charges may apply for training successor or replacement personnel and for additional programs.
  • Franchisee is responsible for all expenses related to training, including travel, lodging, meals, and wages.

Remedial Training

  • On-site remedial training is available upon request or if deemed necessary by the franchisor.
  • Franchisor may charge for on-site remedial training and require reimbursement for representative expenses.

Additional Training Programs

  • Additional training programs may be required for the franchisee's Operating Principal, General Manager, and Location Manager.
  • A reasonable fee may be charged for these additional training programs.

Does

Palm Beach Tan

provides

territory

protection?

The Palm Beach Tan Franchise Agreement specifies that franchisees do not receive an exclusive or protected territory. Franchisees may encounter competition from other franchisees, outlets owned by the franchisor, or from other distribution channels or competitive brands that the franchisor controls.

The right to operate a Palm Beach Tan Location is granted at an approved site within a designated area, but this area is not exclusive or protected except as provided under a Development Agreement, if applicable.

Can a

Palm Beach Tan

franchise

be run as

a passive

investment?

The Palm Beach Tan Franchise Agreement does not explicitly support passive investment. The agreement's terms emphasize the need for franchisees to be actively involved in the franchise's operation, including meeting specific qualifications, completing mandatory training programs, and obtaining approval for any transfer of franchise rights.

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