Palm Beach Tan Franchise Cost & 2026 FDD Data
60/100
Second tier
60 this brand56 Personal Care & Beauty medianlikely 56–64: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,045 of 3,068 graded brands
Why a B: Helped by financial health, scale, legal record and transparency. Held back by unit economics and unit growth. See all six factors
- Total investment
- $755K – $1.3M
- Avg gross sales
- $549K
- “Franchised Sample Locations (314 units, 12mo ended 12/31/2025)”, 314 outlets; not profit
- SBA charge-off
- 6 resolved of 11 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Palm Beach Tan franchise requires a total initial investment of $755K – $1.3M, including a $30K franchise fee. Once open, the ongoing royalty is 6.0%. Per the 2026 FDD, average gross sales were $549K (Item 19 group “Franchised Sample Locations (314 units, 12mo ended 12/31/2025)”, 314 outlets; gross sales, not profit). Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Personal Care & Beauty median
Top edge: green = better than the Personal Care & Beauty median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $549K/year (outlet median $505K; Item 19 group “Franchised Sample Locations (314 units, 12mo ended 12/31/2025)”, 314 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 73 (2 opened, 75 left the franchised system, 66 of them bought back by the franchisor).
- DECLINE-74 franchised outlets over the two years to 2025 (398 to 324, -18.6% in total, -9.8% a year compounded). Ask whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
AT STAKEOne unit at the Item 7 midpoint: $131K a year in payments on assumed SBA 7(a)-style terms.You put in about $202K of your own cash and personally guarantee a $808K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- Net -73 franchised outlets in 2025 (Item 20, outlet counts). Ask owners why outlets closed.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
Checked and clear: no auditor doubt that the franchisor can keep operating, no pending lawsuit naming the franchisor, no supplier rebates to the franchisor, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 314 units. Not on file here, so ask: SBA charge-off rate against the category median.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 2.3× the Personal Care & Beauty median ($447K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Palm Beach Tan Franchising, Inc. (Item 1: 6321 Campus Circle Drive E., Irving, Texas 75063) and your lender what they require, and keep living costs for the first year outside the deal.
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 | $5.12K | $17.5K | |
| Furniture and Fixtures | $52.5K | $115K | |
| Tanning and Related Equipment | $272.5K | $509.6K | |
| Computer Hardware and Software | $6.94K | $10.2K | |
| PBTV Mobile App | $50 | $50 | |
| Initial Inventory of Lotions, Solutions, and Supplies | $17.5K | $18.5K | |
| Signage | $6.7K | $22K | |
| Professional Services | $15K | $20K | |
| Utility Deposits and Permits | $60 | $6K | |
| Grand Opening | $20K | $20K | |
| In-Location Merchandising Kit | $3K | $5K | |
| Local Marketing Kit | $3K | $4K | |
| Initial Training | $2.5K | $4.5K | |
| Pre-Opening Training | $2K | $4K | |
| Music System with Installation | $2.5K | $4.4K | |
| Security System (includes CCTV system) | $2K | $3K | |
| Insurance | $4K | $10K | |
| Additional Funds (20) (three months) | $60K | $60K | |
| Total initial investment | $755K | $1.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
Technology feesThe filing's detailComputer hardware/SunLync software $6,941-$10,190 (Item 5/7); Sunlync and Software Support Fee $300/month/location (Item 6); Customer Experience Management Program $40/month/location; Digital Support Program $125/month/location | See the list |
| Transfer fee | $5,000 |
| Renewal fee | $7,500 |
| Total fee loadnear the Personal Care & Beauty median of 8.0% | 8.0% of sales |
What do units actually make?
Average gross sales are near the Personal Care & Beauty median ($519K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Palm Beach Tan unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $549K (FDD p.64), and the royalty and ad fund take about $44K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $131K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $1.0M Item 7 midpoint is a $808K loan, paid over 10 years at 10.5%: $131K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Palm Beach Tan's past SBA 7(a) loans averaged 7.9% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $202K Assumption (the part the loan does not cover of the $1.0M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $808K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Palm Beach Tan unit leave you each year after the loan payment?
Item 19: $549,415 average for 314 outlets (Franchised Sample Locations (314 units, 12mo ended 12/31/2025)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Advertising Fund contribution 2% of Gross Sales; plus mandatory Local Advertising spend of 3.5% of Gross Sales (not paid to franchisor); total franchisor-required advertising assessment capped at 5.5% of Gross Sales” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $755K to $1.3M
Item 7's $60K to $60K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $808K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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: 2026 FDD · filed by Palm Beach Tan Franchising, Inc.
Financial performance
- Range (low → high)
- $179K→$1.5MSource: 2026 FDD, page 64
- Cohort dispersion (min → max)
Percentile ranks within Personal Care & Beauty
Each rank is among the Personal Care & Beauty brands that report that figure (the count is under each bar).
Item 19 · 2 groups · FDD p.61
Item 19 by group
The 2026 filing reports gross sales for 2 groups of outlets. The headline average on this page is the “Franchised Sample Locations (314 units, 12mo ended 12/31/2025)” group (314).
| Group | n | Average | Median |
|---|---|---|---|
| Franchised Sample Locations (314 units, 12mo ended 12/31/2025)headline above | 314 | $549K | $505K |
| Company-Owned Sample Locations (310 units, 12mo ended 12/31/2025) | 310 | $524K | $503K |
Costs and ebitda, as the filing prints them
The filing's “EBITDA” is before royalty, debt service and depreciation; after rent. The filing does not say whether it is after ad fund. Gross sales are not profit, and this line is not take-home pay: what it leaves out still has to be paid.
The cost lines for 1 groups (FDD p.61)
| Line, as the filing names it | Company-Owned Sample Locations (310 units, 12mo ended 12/31/2025)n=310 |
|---|---|
| Average gross sales | $524K |
| OPERATING COSTS | $392K |
| EBITDA | 25.13%$132K |
Average gross sales are only 0.5x the investment midpoint, so recouping the initial outlay is likely to take years even at strong margins. Gross sales are not profit.
vs Personal Care & Beauty medians
How Palm Beach 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.
Who are you contracting with?
Palm Beach Tan Franchising, Inc., owned by Palm Beach Tan, Inc.
Same franchisor, other program: Palm Beach Beauty & Tan. Each is a separate offering with its own page.
Item 1 (the franchisor) · 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 2026 FDD
- 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
- latest fiscal year in the 2026 FDD; $17.0M the year before
Same owner · FDD Item 1, page 10
1 other brand on this site names Palm Beach Tan, Inc. as parent or ultimate parent in its own FDD.
- Palm Beach Beauty & Tan (grade B)
Grouped by the owner's name as each filing prints it (this page: the 2026 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
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
- States and territories listed
- 23
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
-74 franchised outlets over the two years to 2025 (398 to 324, -18.6% in total, -9.8% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 310
- Corporate units in the system
- % franchised
- 51%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 66
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units fell from 398 in 2023 to 324 in 2025
Axis does not start at zero.
Source and method
A system that lost more than 10% of its franchised outlets across the Item 20 years is a red flag. Check whether closures are concentrated in specific regions.
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 11
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $16.1M
- Average loan
- $1.5M
- loan volume divided by loans
- Charge-off rate
- 6 resolved of 11 loans: too few to judge
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 6 resolved of 11 loans: too few to judge
- Recent-loan charge-off
- 6 resolved of 11 loans: too few to judge
- Lenders
- 7
- Average interest rate
- 7.9%
- Jobs reported
- 604
- Lender concentration
- 18%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Palm Beach Tan from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 73%
- Average interest rate
- 7.9%
- Lender concentration
- 18%
- Jobs reported
- 604
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Columbia Bank | ||
| 2 | $322K | Not on file |
| The Huntington National Bank | ||
| 2 | $320K | Not on file |
| Live Oak Banking Company | ||
| 2 | $2.9M | Not on file |
| First Bank of the Lake | ||
| 2 | $4.8M | Not on file |
| U.S. Bank, National Association | ||
| 1 | $641K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| OR Oregon | 3 | 0 | Too few2 resolved |
| CA California | 2 | 0 | Too few1 resolved |
| OH Ohio | 2 | 0 | Too few0 resolved |
| TX Texas | 2 | 0 | Too few2 resolved |
| IN Indiana | 1 | 0 | Too few1 resolved |
| SC South Carolina | 1 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 398 to 324 over the two years to 2025.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 60/100 (category median 56); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; franchisor net income positive
- Unit economics Weighs on itAvg gross sales $549K on a $1.0M investment midpoint, 0.5x (gross sales, not profit)
- Unit growth Weighs on it, weakest dimension-74 franchised outlets over the two years to 2025 (398 to 324, -18.6% in total, -9.8% a year compounded); turnover 11.8%
- Scale Helps324 franchised units, +310 company-owned (634 in all); franchising since 2001
- Legal Helps1 matter naming the franchisor among the Item 3 matters we list (0.2 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+10 points)Score limits: a minimum the method sets for very large, established systems added 10 points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Litigation case detail1 matter · Item 3
Litigation cases
The franchisor
Concluded (1)
Sunless, Inc. v. Palm Beach Tan, Inc. and Palm Beach Tan Franchising, Inc.
settledBrought by a third party · filed 2022-01-17 · U.S. District Court for the Northern District of Ohio · 1:22-cv-0090 (consolidated into 5:21-cv-0248-SO)
“… (United States District Court for the Northern District of Ohio, Case No. 1:22-cv-0090, filed January 17, 2022).”Page 14 of the 2026 FDD, Item 3
Outcome: “In September 2024 a confidential settlement was reached between the Parties, resulting in all claims being dropped by both sides and the case dismissed by the Court.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | No |
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 5 mi |
| Right of first refusal | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
Items 5 (initial fees), 7 (startup costs), 12 (territory) and 20 (outlet counts) · development agreement
Area development (several units)
The filing offers a development agreement for several units. If you miss the schedule, the development agreement can be ended.
Every term, with its page
- If you miss the schedule
- The development agreement can be ended; you lose the protected development area.
2026 FDD p.44
“If you fail to comply with the Development Schedule, or otherwise materially default under the Development Agreement, then we may (in addition to our other remedies) terminate or modify your territorial rights, reduce the area of territorial rights, or reduce the number of Locations that you may establish.”
Each unit still needs its own Item 7 investment on top of the development fee. Have a franchise attorney read the schedule and the default terms before you sign.
Items 10 (financing), 11 (training and support)
Training and 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
- 3–7 mo
- From signing to launch (FDD p.33)
- 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 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Palm Beach Tan franchise?
Per the 2026 FDD, the total investment to open a Palm Beach Tan franchise ranges from $755K to $1.3M, with an initial franchise fee of $30K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Palm Beach Tan franchise owners earn?
According to Item 19 of the Palm Beach Tan FDD, average gross sales were $549K (Item 19 group “Franchised Sample Locations (314 units, 12mo ended 12/31/2025)”, 314 outlets; gross sales, not profit). The median is $505K. What an owner keeps depends on location, operating costs and management.
Who owns Palm Beach Tan?
Palm Beach Tan is franchised by Palm Beach Tan Franchising, Inc. Its parent company is Palm Beach Tan, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Palm Beach 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 Tan FDD and qualifies whose outlets they describe.
What is Palm Beach Tan's franchise failure rate?
There is no published franchise failure rate, and Palm Beach Tan has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Palm Beach Tan franchise locations are there?
Per the 2026 FDD, Palm Beach Tan has 324 franchised units and 310 company-owned (634 in all). In the latest year, the number of franchised outlets fell by 73 (2 opened, 75 left the franchised system, 66 of them bought back by the franchisor).
Is Palm Beach Tan a good franchise to buy?
FranchiseVerdict gives Palm Beach Tan a B Verdict grade (Second tier) with a verdict score of 60 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health, scale, legal record and transparency. Held back by unit economics (avg gross sales $549K on a $1.0M investment midpoint, 0.5x: gross sales, not profit) and unit growth. The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Personal Care & Beauty franchises
Similar investment first, then by grade
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.