Tan Republic Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$25,000
Investment required
$97,000 - $439,000
Tan Republic: Pioneering Excellence in the Tanning Industry
Tan Republic is a prominent tanning salon franchise that has been making significant strides since its founding. Established in 2005 by Lance and Kristina Donnelly, the company is headquartered in Salem, Oregon.
They began franchising in 2008, expanding their unique concept of "bronze without borders," which allows customers to utilize their tanning packages at any Tan Republic location. Over the years, Tan Republic has experienced steady growth, incorporating other salon chains and solidifying its reputation as a preferred tanning salon brand in numerous areas.
The franchise is renowned for its dedication to delivering high-quality tanning experiences and fostering a strong sense of community among its clientele. Tan Republic views its clients not just as customers but as a community of friends, enhancing the camaraderie and premium tanning services the brand offers.
Tan Republic's flexible franchise model allows for the establishment of new salons or the conversion of existing ones into Tan Republic salons, helping to reduce development costs and facilitating the expansion into multiple units.
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 | $5,000 to $25,000 |
| Utilities Deposits and Payments | $0 to $1,000 |
| Furnishings | $2,000 to $5,000 |
| Fixtures | $2,000 to $5,000 |
| Equipment (including Tanning Beds; Spray Tanning or Skin Care, and Spa Equipment) | $50,000 to $300,000 |
| Computer Hardware and Software, Scanner, Digital Camera and Closed-Circuit TV Advertising and Security System | $1,500 to $5,000 |
| Signage | $2,000 to $15,000 |
| Franchise Premises Rent and Buildout/Leasehold Improvements (deposit & 3 months) | $6,000 to $15,000 |
| Washer, Dryer and Start-up Equipment | $500 to $2,000 |
| Inventory (including lotions, materials, towel and supplies) | $2,500 to $5,000 |
| Employee Wages (3 months) | $12,000 to $24,000 |
| Initial Advertising and Promotion | $2,500 to $5,000 |
| Travel and Living Expenses While Training | $500 to $2,000 |
| Insurance (year) | $1,000 to $5,000 |
| Miscellaneous Opening Costs | $1,000 to $5,000 |
| Additional Funds - 3 Months | $10,000 to $20,000 |
| TOTAL | $97,250 to $439,000 |
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Franchise Disclosure Document
Training
Tan Republic provides a comprehensive training program for its franchisees to ensure they are well-prepared to operate their salons successfully. The training includes:
- Mandatory Training: This covers various aspects of franchise operations, including financial controls, marketing techniques, service methods, labor deployment, and quality standards. This training is provided at a location designated by the franchisor and must be completed to the franchisor's satisfaction at least two weeks before the franchise opens for business.
- Supplemental Training: At the time of opening, franchisees receive up to two days of supplemental training at their premises. This training helps with employee training, form use, salon decor, merchandise display, sales assistance, and the use of the Operations Manual. The franchisor covers the trainer's expenses for this training.
- Additional Training: Franchisees can request additional training, which can take place at the franchisor's training center or other agreed locations. This training may involve visits to other franchises, work experience, and observation of operations, with all expenses borne by the franchisee.
- Refresher Training Programs or Seminars: Periodically, the franchisor may offer refresher training programs or seminars that franchisees and their managers must attend. While the training program itself is provided at no charge, franchisees are responsible for travel and related expenses.
- Ongoing Operational Training: This is included in the initial franchise fee and is mandatory for franchisees and any designated full-time manager within 60 days of signing the Franchise Agreement. The ongoing training ensures that franchisees continue to operate their businesses effectively.
The training schedule covers essential subjects like operations, site selection, point of sale, sales, and marketing training, primarily conducted in Oregon.
Territory Protection
The Tan Republic franchise agreement grants franchisees a defined franchise territory. Although this territory is not exclusive, the franchisor commits not to establish or license any other Tan Republic facility or a similar competitive business within this area without obtaining the franchisee's prior written consent.
Additionally, while the territory protection offers a level of security, franchisees should be aware that they may still face competition from other franchisees operating in nearby areas, as well as from other channels of distribution controlled by Tan Republic.
This arrangement ensures that franchisees have a certain degree of market presence while maintaining the brand’s ability to expand and adapt to market demands.
