FranchiseVerdict
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FV-02553·MODERATEStandard76

Tan Republic

Personal Services - Beauty & SalonFranchising since 2008Website
Investment
$117K – $582K
17th pct Beauty & Salon
Avg revenue
70th pct Beauty & Salon
Royalty
6.3%
55th pct Beauty & Salon
Units
59
60th pct Beauty & Salon
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $117K – $582K including a $25K franchise fee, 6.3% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
TAN REPUBLIC FRANCHISE COMPANY, LLC
Parent company
none
Incorporated in
Oregon
HQ
1124 Wallace Road NW, Suite 115, Salem, Oregon 97304
Auditor
Kezos & Dunlavy
Audited financials
Franchisor revenue
$1.7M
vs $1.7M prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Tan Republic unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $117K–$582K
Working capital
$
FDD reports $10K–$20K

Unlevered ROIC · per unit

46%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$167K
EBITDA margin
22.3%
Total invested
$365K
Payback
26 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Tan Republic operates indoor tanning salons offering UV tanning beds, spray tans, and related skin care services. Franchisees manage daily salon operations including staff scheduling, customer service, equipment maintenance, and marketing to drive walk-in and membership-based revenue. The business model relies on recurring customer memberships and service appointments in a mature, competitive market.

CEO
Lance Donnelly
Founded
2008
FDD year
2025
States available
7

Item 7 · what it costs

The Vitals

Total investment
$117K – $582K
All-in to open one unit
Liquid capital
$10K – $20K
Cash you must have on hand
Franchise fee
$25K
Royalty
6.3%
Gross Monthly Revenue · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
7.8%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
59
Opened
1
Last reporting year
Closed
6
Turnover rate
10.2%
Company-owned
1
Corporate units in the system
% franchised
98%
vs corporate-owned
Net growth (yr3)
-7.9%
Net unit change last year
3-yr CAGR
-6.5%
Compounded over last 3 years
2023
58-5
Franchised units
2024
63
Franchised units
2025
62
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 6 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 6 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
11
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

57
Risk · 0-100
MODERATE57 / 100

Contracting franchise system with declining unit count, opaque financial performance data, and unprotected territories creates meaningful risk for prospective franchisees.

Score breakdown · what drove the 57 / 100 rating

  1. 01MEDUnit count declined 7.9% YoY (59 units) — indicates system contraction and potential franchisee dissatisfaction
  2. 02MEDNo average revenue or net income disclosed — impossible to assess unit economics or ROI before investing $117k–$582k
  3. 03MINORUnprotected territory — franchisees may face direct competition from other Tan Republic locations nearby
  4. 04MINORWide investment range ($465k spread) suggests inconsistent buildout costs or unclear financial requirements
  5. 05MEDHigh royalty rate (6.25%) with no disclosed average revenue makes profitability projections unreliable

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Geographical boundaries defined by zip codes or political lines
Protected territory
No
Initial term
7 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Oregon

Item 11

Training & Operations

Classroom training
13 hrs
On-the-job training
36 hrs
POS system
Sunlync
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

62 numbers

Locked
(559) 824-••••
CA
(541) 816-••••
OR
(503) 982-••••
OR

One-time purchase · CSV download · Validation questions included

FDD download

Tan Republic · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above