Palm Beach Tan Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Palm Beach Tan franchise requires a total initial investment of $755K – $1.3M, including a $15K – $30K franchise fee. Per the latest FDD, average unit revenue was $549K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified
Overview
- Investment
- $755K – $1.3M
- 54th pct Personal Care…
- Avg gross sales
- $549K
- 17th pct Personal Care…
- Royalty
- N/A
- Units
- 634
- 55th pct Personal Care…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · 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
- Total investment $755K – $1.3M including a $15K franchise fee.
- Average unit revenue of $549K/year (median $505K).
- Verdict A (Strongest tier), verdict score 64/100 (higher is better). SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System contracting at -18.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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.
- Predecessor
- Palm Beach Tan (Legacy Brand); Planet Tan (acquired 2008)
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer
- Daniel Caskey
- Incorporated in
- Delaware
- HQ
- 6321 Campus Circle Drive E., Irving, Texas 75063
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $18.1M
- vs $17.0M prior year
Overview
About
Palm Beach Tan Wellness Locations offer tanning products, services, and accessories plus spa-related wellness products and services including infrared saunas and red-light therapy.
- CEO
- Daniel Caskey
- Headquarters
- Texas
- Founded
- 2001
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 92% above the typical personal care & beauty franchise.
Source: FDD · Items 5–7
FDD Item 7
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $60K | $60K |
| Equipment, build-out, other | $680K | $1.2M |
| Total initial investment | $755K | $1.3M |
Source: Palm Beach Tan FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $755K – $1.3M
- Middle of category vs category
- Liquid capital req'd
- $60K – $60K
- Middle of category vs category
- Franchise fee
- $15K – $30K
- Top 40% of category vs category
- Royalty
- 4% of Gross Sales months 1-12 from Opening Date; 5% month…
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $8K |
| Inventory (initial) | $18K – $19K |
What do units actually make?
Average unit sales run 28% below the personal care & beauty norm.
Source: FDD · Item 19
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
$121K
22.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
8.8 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $549K
- Per unit, per year
- Median gross sales
- $505K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical_actual
- Sample size
- 314 units
- vs category median 33 · large
- Range (low → high)
- $179K→$1.5M
- Cohort dispersion (min → max)
- Reporting year
- 2026
- Fiscal year the figures cover
Compared against 200 Personal Care & Beauty brands
Revenue is only 0.5x 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 $549K/year in gross sales. Revenue-to-investment ratio: 0.5x.
Operator retention
System contracting at -18.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 averages
How Palm Beach Tan Compares
Is the system healthy?
Source: FDD · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 634
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Company-owned
- 310
- Corporate units in the system
- % franchised
- 51%
- vs corporate-owned
- Net growth (3-yr)
- -18.6%
- Net unit change over 3 years
- 3-yr CAGR
- -18.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 8
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 23 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
23
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $16.1M
- Median loan
- $620K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 7.9%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8121
- Jobs supported
- 604
- 3.7 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Palm Beach Tan franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Trademark/unfair-competition suit by Sunless, Inc. (Mystic Tan) alleging false rebranding of Mystic Tan Kyss booths as "Sunscape"; franchisor asserted counterclaims; confidential settlement reached Sept 2024, case dismissed.
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: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD · 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 | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
Trademark/unfair-competition suit by Sunless, Inc. (Mystic Tan) alleging false rebranding of Mystic Tan Kyss booths as "Sunscape"; franchisor asserted counterclaims; confidential settlement reached Sept 2024, case dismissed.
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 120 hrs
- Training location
- Franchisor's office in Irving, Texas, and/or other designated location
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor site-approval criteria and 30-day review
- Franchisor financing
- Not offered
- Item 10
- POS system
- SunLync
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SunLync
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Palm Beach Tan franchise?
The total investment to open a Palm Beach Tan franchise ranges from $755K – $1.3M, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Palm Beach Tan franchise owners earn?
According to Item 19 of the Palm Beach Tan FDD, the average gross sales per unit is $549K. The median is $505K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Palm Beach Tan's franchise failure rate?
Based on SBA 7(a) loan data, Palm Beach Tan has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Palm Beach Tan franchise locations are there?
As of their most recent FDD filing, Palm Beach Tan has 634 total units in the United States, including 324 franchised units and 310 company-owned units.
Is Palm Beach Tan a good franchise to buy?
FranchiseVerdict rates Palm Beach Tan as a A-grade franchise with a verdict score of 64 out of 100 (higher is better), 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 Tan, you can request corrections or provide updated information.
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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.