Palm Beach Beauty & TanFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Palm Beach Beauty & Tan franchise requires a total initial investment of $648K – $1.1M, including a $30K franchise fee. Per the 2025 FDD, average unit revenue was $497K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $648K – $1.1M
- 44th pct Personal Care…
- Avg gross sales
- $497K
- 14th pct Personal Care…
- Royalty
- N/A
- Units
- 650
- 45th pct Personal Care…
- SBA default
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchising since 2001. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $648K – $1.1M including a $30K franchise fee.
- Average unit revenue of $497K/year (median $468K), with an estimated 14% cash-on-cash return (based on P&L Bottom Line).
- Verdict B (Above Average) with a risk score of 62/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Palm Beach Tan Franchising, Inc.
- Parent company
- Palm Beach Tan, Inc.
- Predecessor
- parent or affiliate have
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 6321 Campus Circle Drive E., Irving, Texas 75063
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $16.5M
- vs $17.0M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees operate beauty and spray tanning salon locations, managing daily client appointments, tanning booth/spray tan services, retail product sales, and staff scheduling. Revenue is primarily derived from tanning memberships, day passes, spray tan services, and ancillary beauty/lotion products.
- CEO
- Daniel Caskey
- Headquarters
- TX
- Founded
- 2001
- FDD year
- 2025
- States available
- 25
FDD Item 7 · 2025 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $30K | $30K | |
| Leasehold Improvements | $250K | $400K | |
| Prepaid Rent and Security Deposit | $5K | $18K | |
| Furniture and Fixtures | $53K | $77K | |
| Tanning and Related Equipment | $180K | $439K | |
| Computer Hardware and Software | $6K | $10K | |
| PBTV Mobile App | $50 | $50 | |
| Initial Inventory of Lotions, Solutions, and Supplies | $16K | $19K | |
| Signage | $7K | $16K | |
| Professional Services | $15K | $20K | |
| Utility Deposits and Permits | $60 | $5K | |
| Grand Opening | $10K | $10K | |
| In-Location Merchandising Kit | $3K | $5K | |
| Local Marketing Kit | $3K | $4K | |
| Initial Training | $3K | $5K | |
| Pre-Opening Training | $2K | $4K | |
| Music System with Installation | $3K | $4K | |
| Security System (includes CCTV system) | $2K | $3K | |
| Insurance | $2K | $5K | |
| Additional Funds | $60K | $60K | |
| Total initial investment | $648K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$109K
22.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $648K – $1.1M
- Near category avg vs category
- Liquid capital req'd
- $60K – $60K
- Near category avg vs category
- Franchise fee
- $5K – $30K
- Better than avg vs category
- Royalty
- 1-12 months: 4% of Gross Sales; 13-24 months: 5% of Gross…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 7.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $5K |
| Inventory (initial) | $500 |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $497K
- Per unit, per year
- Median gross sales
- $468K
- Avg p&l bottom line
- $121K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 13.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 245 units
- vs category median 35 · large
- Range (low → high)
- $130K→$1.1M
- Cohort dispersion (min → max)
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Personal Care & Beauty averages
How Palm Beach Beauty & Tan Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 650
- Opened
- 7
- Last reporting year
- Closed
- 8
- Turnover rate
- 1.2%
- Company-owned
- 253
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Net growth (yr3)
- -0.3%
- Net unit change last year
- 3-yr CAGR
- +14.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 205
- Closed (3yr)
- 1
- Terminated (3yr)
- 10
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Indiana
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining system with unresolved litigation history, unprotected territory, escalating fees, and missing financial transparency creates meaningful investment risk in a mature beauty/tanning market.
Litigation (Item 3)
6 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $36,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 62 / 100 rating
- 01MINORDeclining unit count (-0.3% YoY) suggests system contraction and potential market saturation in beauty/tanning segment
- 02HIGH2.5-year litigation with competitor (2022-2024) over IP/rebranding creates brand uncertainty and suggests operational/marketing vulnerabilities
- 03MINORNo protected territory exposes franchisees to direct competition from other Palm Beach Tan units and cannibalizing same market
- 04MINOREscalating royalty structure (4%→5%→6%) reduces profitability over time; at 6% royalty on $496K avg revenue = $29.8K annual ongoing fees
- 05MINORItem 19 (Financial Performance) absent — cannot verify if average revenue/net income figures are representative or survivorship-biased
- 06MINORHigh initial investment range ($648K-$1.1M) paired with modest net income ($121K avg) yields 5-9 year breakeven horizon with unprotected territory risk
- 07MEDConfidential settlement terms unknown — potential undisclosed operational or rebranding requirements could impact franchisee costs/liability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 6 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
6 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 57 hrs
- On-the-job training
- 340 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- SunLync
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SunLync
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Palm Beach Beauty & Tan · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Palm Beach Beauty & Tan franchise?
The total investment to open a Palm Beach Beauty & Tan franchise ranges from $648K – $1.1M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Palm Beach Beauty & Tan franchise owners earn?
According to Item 19 of the Palm Beach Beauty & Tan FDD, the average gross sales per unit is $497K. The median is $468K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Palm Beach Beauty & Tan's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Palm Beach Beauty & Tan (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Palm Beach Beauty & Tan franchise locations are there?
As of their most recent FDD filing, Palm Beach Beauty & Tan has 650 total units in the United States, including 348 franchised units and 253 company-owned units. 7 new units were opened in the latest reporting year.
Is Palm Beach Beauty & Tan a good franchise to buy?
FranchiseVerdict rates Palm Beach Beauty & Tan as a B-grade franchise with a risk score of 62 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Palm Beach Beauty & Tan, you can request corrections or provide updated information.
Claim this brandOther Personal Care & Beauty franchises
Compare similar franchise opportunities in the Personal Care & Beauty category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.