Palm Beach Tan Franchise FDD, Profits & Costs (2025)
Palm Beach Tan was founded in 1990 and is headquartered in Coppell, Texas. Since its inception, the company has grown to become a leader in the indoor tanning industry. The franchise started its expansion in 1998, and today boasts over 550 locations across the United States.
Palm Beach Tan offers a range of services, including sunbed tanning, spray tanning, and skincare products, appealing to a wide demographic of beauty and wellness-conscious customers.
What sets Palm Beach Tan apart from the competition is its commitment to customer satisfaction and state-of-the-art technology. The franchise provides an exceptional customer experience with top-tier tanning equipment and a variety of tanning options to meet diverse preferences.
Their proprietary line of skincare products, along with highly trained tanning consultants, ensures that customers receive personalized and high-quality service.
Initial Investment
How much does it cost to start a Palm Beach Tan franchise? It costs on average between $624,000 – $1,009,000 to start a Palm Beach Tan franchised salon.
The initial costs cover construction, tanning equipment, inventory, and initial operating expenses. The total investment varies based on factors such as the type of tanning salon format selected, the location, and whether the franchisee decides to lease or buy the property.
| 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 |
Average Revenue (AUV)
How much revenue can you make with a Palm Beach Tan franchise? A Palm Beach Tan franchised studio makes on average $516,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $535,000 yearly revenue for similar other beauty franchises.
Below are a few competitors:
Palm Beach Tan Franchise Disclosure Document
Frequently Asked Questions
How many Palm Beach Tan locations are there?
As of the latest data, Palm Beach Tan operates over 600 tanning salons across the United States. This expansion includes both company-owned and franchise-owned locations, though specific numbers for each category are not publicly disclosed.
What is the total investment required to open a Palm Beach Tan franchise?
The total investment required to open a Palm Beach Tan franchise ranges from $624,000 to $1,009,000.
What are the ongoing fees for a Palm Beach Tan franchise?
A Palm Beach Tan franchise has ongoing fees that include a royalty fee, starting at 4% of gross revenues in the first year, increasing to 5% in the second, and reaching 6% from the third year onward.
Franchisees also pay a 3.5% local marketing fee and contribute 2% to the national advertising fund, totaling a 5.5% marketing commitment. These fees help sustain brand development and marketing efforts.
What are the financial requirements to become a Palm Beach Tan franchisee?
To become a Palm Beach Tan franchisee, you must have a minimum net worth of $500,000 and at least $250,000 in liquid assets. These financial thresholds ensure that franchisees have the necessary resources to establish and operate a Palm Beach Tan salon effectively.
How much can a Palm Beach Tan franchise owner expect to earn?
The average gross sales for a Palm Beach Tan franchise are approximately $0.52 million per location. Assuming a 15% operating profit margin, $0.52 million yearly revenue can result in $78,000 EBITDA annually.
Who owns Palm Beach Tan?
Palm Beach Tan, founded in 1990 by Parrish Medley, is a privately held company. As of 2023, Diane Lucas serves as the President and CEO, overseeing the company’s operations and strategic direction
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