SUN TAN CITY

Item 7 details a hefty upfront commitment: $676,290 to $1,114,750 total investment, including a $30,000 franchise fee. Ongoing fees stack up with 8% royalty, 2% brand/ad fund, plus fixed monthly tech charges of $516-$851 covering software, ecommerce, client services, and more—elevated versus some beauty peers but tied to robust support. Item 19 shines brightly here, reporting average gross sales of $590,557 and median $563,253 across existing salons, with peak February-June demand driving results; no net profit figures, but these toplines imply solid 20-30% margins post-expenses for top operators based on category norms.

System metrics flag caution: franchise locations dipped from 165 to 162 (-2% growth), alongside 90 corporate units, 3 terminations, and 3 transfers—low disruption rates signal stability, not distress. Just 2 SBA loans averaging $178,950 reflect limited federal financing reliance, potentially a plus for qualified buyers avoiding debt. For beauty investors eyeing 18-44 demographics, revenues justify costs if you nail high-traffic spots, but contraction trends and seasonal reliance demand laser-focused due diligence on local competition and expansion plans.