Palm Beach Tan
Palm Beach Tan · Wellness Locations offer tanning services, products, and spa-related offerings. Known for its comprehensive range of tanning solutions, this franchise operates in the wellness and beauty industry.
About Palm Beach Tan
Palm Beach Tan is a chain of indoor tanning facilities based in Dallas, Texas. Founded in 1990, it is the largest indoor tanning chain in the United States, with over 660 locations under the Palm Beach Tan, Palm Beach Beauty and Tan, and Planet Tan brands. Palm Beach Tan provides sunless tanning, sunbed tanning and wellness services.
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Palm Beach Tan franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Location ranges from $755,390 to $1,263,712. This amount includes approximately $36,941 to $40,190 that must be paid for a newly constructed Location [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000, less any development fee credit that may apply [p.107]. This fee is nonrefundable upon receipt by the franchisor [p.107].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of monthly Gross Sales. For both new and conversion locations, the royalty rate starts at 4% for the first 12 months after the opening date, increases to 5% for the next 12 months, and then to 6% thereafter [p.195]. Advertising fees are also due but their specific percentage is not detailed in these excerpts; they remain at the level in effect on the expiration of the initial term if different from other terms [p.107] and are typically paid through electronic funds transfer (EFT) along with royalty fees [p.108].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, if Franchisor is not offering new franchises or is revising its franchise agreement, they may offer to renew the agreement on a week-to-week basis until they can provide the current form of the franchise agreement [p.107].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.6(g)]. Good cause includes but is not limited to unspecified factors, and the franchisor also has the right of first refusal to purchase the franchise [p.42].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement prior to its expiration for good cause, such as the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.6]. This isn't specified in the excerpts regarding specific grounds for termination by the franchisor beyond good cause.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. The Designated Area described in the FDD is not exclusive or protected for any purpose except as specified in a Development Agreement [p.42]. This means you may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands within your designated area [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides a franchisee orientation program lasting 2 days, a franchisee training program spanning 4 weeks, and an initial management training program that lasts 25 shifts. These trainings are mandatory and conducted at their office in Irving, Texas, or another designated location. Additionally, the franchisor offers ongoing support through a toll-free consultation line and limited back-office support. For successor or replacement personnel, there may be additional fees for training beyond the initial setup. [p.199]
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of the date of this disclosure document, there are 10 franchised Legacy Locations that converted to a Palm Beach Beauty & Tan Location in North Carolina. This information does not specify the number of closed or terminated outlets [p.67].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations [p.66]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.60]. Additionally, the franchisor requires franchisees to report any other financial performance information or projections received [p.66].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products and services that the franchisor has expressly approved for sale. You must purchase all lotions and spa products from the approved suppliers currently listed as New Sunshine, Tanning Supplies Unlimited, LightStim, and Exotropin. [p.27] Additionally, you must conform to the franchisor's standards and specifications for these products and services, and cannot deviate without prior written consent. [p.51]