Palm Beach Tan Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$624,000 - $1,009,000
Royalty fee
6.00%

Palm Beach Tan: A Leader in the Tanning and Beauty Sector

Established in 1990 and headquartered in Coppell, Texas, Palm Beach Tan is a renowned name in the tanning and beauty industry. This franchise excels in delivering a sun-kissed glow and advancing skincare.

What sets Palm Beach Tan apart is its vast network of tanning salons, which offer a range of tanning services such as sunbeds, spray tanning, and UV-free options.

Palm Beach Tan's success in the tanning industry stems from its dedication to safe and responsible tanning practices. The franchise places a high emphasis on skin health, educating clients on responsible tanning and providing various skincare products designed to protect and nourish the skin.

Focusing on customer satisfaction and promoting a healthy, bronzed look, Palm Beach Tan has established itself as a trusted destination for professional tanning services and skincare solutions.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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

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Number of units

2023
Franchised units

319

317

329

Company-owned units

223

220

217

Total units

542

537

546

Franchise Disclosure Document

Training 

Palm Beach Tan offers a detailed and structured training program for its franchisees, covering several key aspects:

Initial Management Training

  • Mandatory for the Operating Principal, General Manager, and Store Manager prior to the salon's opening.
  • Provided at no extra cost initially; however, fees may apply for training successor or replacement personnel and for additional programs.
  • Franchisees are responsible for all training-related expenses, including travel, lodging, meals, and wages.

Remedial Training

  • Available on-site upon request or if deemed necessary by the franchisor.
  • The franchisor may impose charges for on-site remedial training and require reimbursement for the expenses of their representatives.

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 sessions.

Territory Protection

The Palm Beach Tan Franchise Agreement stipulates that franchisees are not granted an exclusive or protected territory. This means franchisees might face competition from other franchisees, franchisor-owned outlets, or other distribution channels and competitive brands managed by the franchisor.

While the right to operate a Palm Beach Tan location is granted at an approved site within a designated area, this area is not exclusive or protected, except under specific provisions of a Development Agreement, if applicable.

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