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PALM BEACH TAN

PALM BEACH TAN

Palm Beach Tan Franchising, Inc. offers franchises for Palm Beach Beauty & Tan Locations, which provide tanning services using beds and sunless self-tanning booths, infrared saunas for wellness, and related beauty products and accessories. The business model involves selling single-unit Franchise Agreements or multi-unit Development Agreements, with franchisees operating under standardized systems, marks, and procedures. It targets consumers seeking affordable tanning, beauty, and wellness services.

398locations
$639K–$1001K
Since 2001
HealthcareIrving, TXPalm Beach Tan, Inc.www.palmbeachtan.comDisclaimer

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Franchise Costs

Franchise Fee
$30,000
Initial Investment
$639,036 – $1,000,970
Royalty Rate
6.00%
Brand Fund
2.00%
Fixed Monthly Fees
$687 – $704

Tiered royalty (4-6% over time) + 2% ad fund + $687-$704/mo fixed fees (SunLync software, digital support, music, etc.)

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$542,093
Median Gross Revenue
$502,791

Data Based On: 314 franchised Legacy Locations in operation during the entire 24-month period ended December 31, 2023, with an overall average of 9.81 years of operation.

* Financial performance data is provided for franchised Legacy Locations. Average and median gross revenue (Total Revenues) are directly extracted from Table 1 for the 314 Franchised Legacy Locations. Specific data for revenue top/bottom quartiles, net income, net profit, EBITDA, and EBITDA margin for franchised units are not provided in the document. Therefore, profit estimates could not be made due to the absence of comprehensive expense or profit margin data for franchised locations.

Extracted Item 19 Section

Avg. Revenue: $542,093

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PALM BEACH TAN Franchise Analysis

Tanning beds might evoke outdated vibes, but Palm Beach Tan's 2024 FDD via Item 19 spotlights franchisee gross revenues that defy industry headwinds from UV scares and self-tan trends. Backed by a massive corporate footprint and fresh expansion momentum, this beauty-wellness play hints at untapped infrared sauna demand. Does the data signal a bronzed opportunity or just a fleeting glow?

Item 7 lays out the financial entry: $30,000 franchise fee plus total initial investment of $639,036-$1,000,970, covering buildout for tanning beds, sunless booths, saunas, and retail space in high-traffic spots. Ongoing fees hit 6% royalty (tiered down from higher starts), 2% ad fund, and $687-$704 monthly fixed charges for software, digital tools, music licensing—potentially squeezing margins if sales lag. Yet Item 19's disclosed metrics shine: average gross revenue $542,093, median $502,791 across mature units, implying solid top-line potential in personal care services without EBITDA details to gauge true profitability.

System health per Items 20/21 reveals a maturing network—398 franchised locations up 14% from 348 in 2022, plus 257 corporate stores signaling strong parent commitment from Irving, TX HQ. Low drama with 12 terminations, 1 non-renewal, and 4 transfers, but modest projected 1 new unit flags cautious franchisor outlook. For investors eyeing healthcare/personal care, this corporate-backed model offers scale and $500K+ medians, but high upfront costs demand prime real estate and marketing savvy to hit averages.

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Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How PALM BEACH TAN Compares

Key Insights

  • Higher investment than 80% of Personal Care Services franchises
  • Top 10 largest franchise system in Personal Care Services
FranchiseInvestmentFeeRoyaltyLocations
PALM BEACH TAN
Current
$639K – $1.0M$30K6.0%398
COST CUTTERS$184K – $336K$40K5.0%911
COMFORT KEEPERS$120K – $191K$55K5.0%619
REGAL NAILS SALON & SPA$173K – $722K$25KN/A513
HOUSE OF COLOUR$33K – $52K$30K4.0%312
DRYBAR$410K – $1.0M$50K7.0%176
Personal Care Services Average
20 franchises
$418K – $809K$43K5.9%–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 20 Personal Care Services franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States
1OH
39
2TX
35
3AL
33
4CA
33
5SC
27
6CO
25
7MO
24
8NC
21
9OK
20
10IN
18
11AR
15
12OR
15
13MN
12
14NE
11
15MS
11

+10 more states

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Franchisee Contacts

398 franchisee contacts on file from official FDD filings.

398 Contacts Available

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Due Diligence

Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
12
Non-Renewals
1
Reacquired
0
Ceased Ops
1
Transfers
4
Sold to Franchisees
0
Projected New
1

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Frequently Asked Questions

The total initial investment to open a PALM BEACH TAN franchise ranges from $639,036 to $1,000,970. This includes a franchise fee of $30,000. Ongoing royalty fees are 6.0% of gross sales.