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Below is an in-depth analysis and side-by-side comparison of Hollywood Tans vs Tan Company, The including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $269,500 | $386,700 - $844,000 |
Franchise Fee | $34,500 | $25,000 |
Royalty Fee | 7% | 6% |
Advertising Fee | - | - |
Year Founded | 1994 | 1994 |
Year Franchised | 1998 | 2001 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | $500 |
Business Experience Requirements |
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Experience | - | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | - |
Operations | - | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
Hollywood Tans of Sewell, New Jersey , was incorporated in 1994 and began Franchising in 1998. With about 325 units currently open and a presence in 31 states, they are well-established across the U.S. Clients of Hollywood Tan salons are typically female and range from 18-45 years old, although the mix of people interested in tanning is changing. Where there used to be a much heavier usage among females than males, the current percentage is about 65 percent female and 35 percent male. There are a number of tanning businesses in the U.S. but Hollywood Tans has an edge that makes them unique. They manufacture all of their equipment. We build our tanning beds and booths, as well as our millwork facility, where we fabricate the front counters and display shelves and we even private label all of our tanning lotions. We are a one-stop shop for our franchisees. A Hollywood Tans salon is a little different than most salons in that the majority of units are stand-up booths. They tan faster and better and are more sanitary. You get a more even tan because all the bulbs are an equal distance away. For the salon owner, they are also better because they take up less space and clients take less time to tan, meaning you can increase the number of people you serve. Because the tanning equipment is actually manufactured by Hollywood Tans, the franchisee gets a lifetime warranty. Training also includes trouble-shooting the equipment so an owner will avoid down time.
In 1994, Todd Beckman made the decision to focus his efforts entirely on the tanning side of business and opened The TAN Company. What began as an “add-on” to a hair salon, grew to over 50 independent, single-focus tanning salons operating in 7 states!
With equipment continually changing and skin care products improving every year, it is imperative to stay informed. It is only as an expert can you satisfy the desires of current and future tanners.
One of the most valuable benefits to owning a Tanco franchise is our expertise in this industry. We monitor trends, continually test new products, and keep you aware of even the smallest of details to ensure your success. Because we have already overcome obstacles and learned from our mistakes, you don’t have to face unnecessary challenges when beginning your own entrepreneurship.
We have achieved our level of success only through the efforts of the outstanding corporate team. Many of the individuals on our corporate staff own at least one Tanco franchise location. Because of this, we all have a personal stake in the future of this company and are constantly looking for ways to improve. Our entire corporate team, the majority of whom started in our tanning salons, is made up of individuals who have a desire for perfection, a determination to succeed and a dedication to this company that is unmatched at any other company in America.
When you invest in Tanco you gain much more than a business, you become a part of the Tanco family. There is a saying that you can’t choose your family, but I must disagree. Our family - our franchisees as well as our corporate staff - has been carefully selected to ensure our future success. We make sure that every member of our family has what it takes to help Tanco reach the highest levels of success.