Sun Tan City Franchise Costs, Fees & Owner Salary (2023)









May 2, 2024


Sun Tan City

a franchise?

Sun Tan City

Sun Tan City, established in 1999, has evolved into a significant name in the indoor tanning industry, particularly after beginning its franchising operations in 2005. This chain of tanning salons is known for providing high-quality tanning services in a clean, relaxing environment, staffed with knowledgeable tanning consultants.Headquartered in Louisville, Kentucky, Sun Tan City has made a considerable impact in the beauty sector with its unique business approach.

The franchise offers a distinctive experience that combines the luxury of indoor tanning with the efficiency and convenience demanded by today's fast-paced lifestyle. Franchisees of Sun Tan City are supported extensively, receiving guidance in areas such as training, operations, marketing, information technology, procurement, and risk management. This comprehensive support is designed to ensure the success and growth of each franchise location.

The brand's commitment to quality service and customer satisfaction, combined with a strong business model and support system, makes Sun Tan City a compelling option for entrepreneurs looking to enter the indoor tanning industry. The franchise's focus on providing a superior tanning experience positions it well for continued growth in this sector​​​​​​.

How many

Sun Tan City


are there?

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

What are the

Sun Tan City



Advertising fee

3.5% to 5%

Initial Franchise Fee

The Initial Franchise Fee is a fundamental cost for starting the franchise, set at $30,000. This fee is payable at the time you sign the Franchise Agreement and is non-refundable. It represents the cost of acquiring the rights to open and operate a franchise under the franchisor's brand, and it's a crucial part of the initial investment in the franchise business.

Advertising Fee

For advertising, there is a specific fee related to the grand opening of the franchise. The grand opening advertising program requires a minimum expenditure of $10,000. This fee ensures that the franchise's launch receives adequate promotional support, helping to attract initial customers and establish the franchise's presence in the market.

Technology Fee

The Technology Fee includes a Software and License Support Fee. This consists of a $1,500 license fee, and an annual fee of $500 per Salon. These fees cover the cost of software licensing and ongoing support, ensuring that the franchise remains technologically up-to-date and efficient in its operations.

Transfer Fees

In the event of a franchise transfer, a Transfer Fee of $5,000 is applicable. This fee is due concurrently with the transfer of the franchise. It covers the administrative and other costs involved in transferring the franchise rights and ensuring a smooth transition to the new owner.

Renewal Fees

When it comes to renewing the franchise agreement, a Successor Franchise Fee of $5,000 is charged. This fee is associated with the continuation of the franchise after the initial term and covers the costs related to processing and approving the renewal of the franchise contract.

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

Sun Tan City


It costs between
to start a
Sun Tan City
Type of Expenditure Amount
Initial Franchise Fee $30,000
Leasehold Improvements $150,000 to $250,000
Signs $4,000 to $10,000
Tanning Equipment $250,000 to $350,000
Office Equipment, Furniture, Retail Service Counter and Display and Supplies $15,000 to $20,000
Initial Retail Inventory $5,000 to $7,000
Start-Up Marketing $10,000 to $13,000
Insurance $2,000 to $6,000
Lease Deposits $5,000 to $10,000
Professional Fees $500 to $5,000
Your Out-of-Pocket Expenses to Bring in Our Trainers/Field Support $1,000 to $5,000
Computers and Software $7,000 to $10,000
Utility Deposits $1,500 to $5,000
High Speed Internet Access $60 to $2,000
Pre-Opening Training $5,000 to $10,000
Security System $300 to $1,500
Music System $29
Digital Messaging System (Hardware) $1,400 to $3,000
Wall System, Interior Signage $25,000 to $45,000
License/Bonds $500 to $1,000
Working Capital (Additional Funds over next 3 months) $50,000 to $100,000
Total $563,289 to $883,529

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.


Sun Tan City



to its


Sun Tan City

The franchisor provides its franchisees with a detailed  training program that includes several key components:

Franchisee Training Program

  • Conducted by Certified Training Salon Directors overseen by Lauren Kron.
  • Training is generally completed at Company Salons.
  • Required for day-to-day operators and available for other employees.
  • No cost for participation, excluding travel expenses and employee compensation.

New Salon Opening and Training

  • A 40-hour grand opening training program is provided at no cost for the first Salon.
  • Includes new salon setup and organization, and Salon Director support and training.

First Role Certification

  • Training and certification for roles like Salon Director, District Manager, Training Salon Director, and Trainer.
  • Performed at Company Training Salons at no cost except for travel expenses and employee compensation.
  • Franchisees are responsible for training and certification for additional Salons.

Additional Training

  • Franchisees can request additional training, subject to availability.
  • Additional training is charged at $300 per day, plus travel expenses and employee compensation.

Initial Training for First Salon

  • Includes Salon Director Training Program before the Salon opening.
  • Training provided for 40 hours of support for the first Salon.


Sun Tan City




The Sun Tan City franchise does not offer exclusive territory to franchisees. Franchisees may face competition from other franchisees, company-owned outlets, or other channels controlled by the franchisor.

Can a

Sun Tan City


be run as

a passive


Sun Tan City does not allow for passive investment or absentee ownership. The franchisee (or their managing owner) is required to personally manage and operate the franchise as their primary occupation, or delegate the authority and responsibility for management and operation to an individual who will personally manage and operate the franchise as their primary occupation (a "supervisor").

If the franchisee is a business entity, they must designate a managing owner to operate the franchise, and this person must be approved by the franchisor. 

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