Palm Beach Beauty & Tan Franchise Cost, Revenue & Review 2026
- Investment
- $648K – $1.1M
- Disclosed sales
- $527K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Palm Beach Tan is a personal-care franchise offering UV and spray tanning plus skincare and beauty products on a membership model. Franchisees run salons managing tanning services, memberships, and retail sales.
FranchiseVerdict summary · 2026
A Palm Beach Beauty & Tan franchise requires a total initial investment of $648K – $1.1M, including a $5K – $30K franchise fee and an ongoing 4.0% royalty[2]. Per the 2025 FDD, average unit revenue was $527K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $648K – $1.1M
- 55th pct Personal Care…
- Avg gross sales
- $527K
- 16th pct Personal Care…
- Royalty
- 4.0%
- 1st pct Personal Care…
- Units
- 650
- 58th pct Personal Care…
- SBA charge-off
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $648K – $1.1M including a $30K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $527K/year (median $484K).
- RISKVerdict B (Above average), verdict score 60/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (7 opened, 8 closed) (Item 20).
- TERMSNo 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
Corporate structure & franchisor financials
- Legal entity
- Palm Beach Tan Franchising, Inc.
- Parent company
- Palm Beach Tan, Inc.
- FDD Item 1, page 10 of the 2025 FDD
- Predecessor
- Palm Beach Tan (Legacy Brand)
- Prior franchisor entity
- CEO title
- President and Chief Operating Officer
- Daniel Caskey
- Incorporated in
- DE
- HQ
- 6321 Campus Circle Drive E., Irving, Texas 75063
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $17.0M
- vs $16.5M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 10
1 other brand on this site name Palm Beach Tan, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Daniel Caskey
- Headquarters
- TX
- Founded
- 2001
- FDD year
- 2025
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 121% above the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown20 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $648K – $1.1M
- Middle of category vs category
- Liquid capital req'd
- $60K – $60K
- Middle of category vs category
- Franchise fee
- $5K – $30K
- Top 40% of category vs category
- Royalty
- 4.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Training fee | $3K |
| Transfer fee | $5K |
| Inventory (initial) | $16K – $19K |
| 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.
What do units actually make?
Average unit sales land near the personal care & beauty norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Palm Beach Beauty & Tan until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$950K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Palm Beach Beauty & Tan unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $527K
- Per unit, per year
- Median gross sales
- $484K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue
- Sample size
- 391 outlets
- vs category median 38 · large
- Range (low → high)
- $186K→$1.4MCited, not corroborated — printed on page 65 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 177 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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $527K/year in gross sales. Revenue-to-investment ratio: 0.6x.
Fee burden
Total ongoing fee load of 6.0% — below the Personal Care & Beauty median of 7.9%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 14.1% CAGR over 3 years across 650 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty medians
How Palm Beach Beauty & Tan Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 650
- Opened
- 7
- Last reporting year
- Closed
- 8
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.2%
- Company-owned
- 253
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Net growth (3-yr)
- -0.3%
- Net unit change over 3 years
- 3-yr CAGR
- +14.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 8
- Not renewed
- 0
- Transferred
- 6
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
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).
Where the owners are · Item 20 owner list
99 current owners across 4 states.
- AL 33
- CA 33
- CO 20
- AR 13
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: the franchisor is a named party (defendant).
Sunless, Inc. v. Palm Beach Tan, Inc. and Palm Beach Tan Franchising, Inc. (N.D. Ohio, Case No. 1:22-cv-0090) - trademark/false advertising claims regarding Mystic Tan Kyss booths rebranded as Sunscape; settled confidentially in September 2024 with all claims dropped.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor (Palm Beach Tan Franchising, Inc.) FY2024 audited statements of income: franchise royalties $10,029,801; other franchise products and services $6,673,437; franchise and area developer fees $247,250.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 60 / 100 verdict
- 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
- 05MEDConfidential settlement terms unknown — potential undisclosed operational or rebranding requirements could impact franchisee costs/liability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Termination notice | 30 days |
| Termination groundsℹ | 6 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 1 |
View Item 3 litigation summary
Sunless, Inc. v. Palm Beach Tan, Inc. and Palm Beach Tan Franchising, Inc. (N.D. Ohio, Case No. 1:22-cv-0090) - trademark/false advertising claims regarding Mystic Tan Kyss booths rebranded as Sunscape; settled confidentially in September 2024 with all claims dropped.
Items 10, 11
Training & Operations
- Classroom training
- 58 hrs
- On-the-job training
- 340 hrs
- Training location
- Irving, Texas (corporate office) and/or other location designated by franchisor
- Ongoing training
- Required
- Time to open
- 5 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not 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
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 $527K. The median is $484K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Palm Beach Beauty & Tan?
Palm Beach Beauty & Tan is franchised by Palm Beach Tan Franchising, Inc.. Its parent company is Palm Beach Tan, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Palm Beach Beauty & Tan FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Palm Beach Beauty & Tan FDD and qualifies whose outlets they describe.
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 397 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 verdict score of 60 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.