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Below is an in-depth analysis and side-by-side comparison of Hollywood Tans vs Intelligent Tanning System 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 | N/A |
Franchise Fee | $34,500 | N/A |
Royalty Fee | 7% | - |
Advertising Fee | - | - |
Year Founded | 1994 | - |
Year Franchised | 1998 | - |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | - | - |
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 | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | 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 | - |
International Expansion | Yes | - |
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.
The primary growth engine in the indoor tanning industry consists of the
niche areas of sunless and specialized UV. This is where we focus our
business. Our current product line offers three automated sunless
machines. Of the more than 25,000 businesses in the United States that
offer tanning services, which generate more than $5 billion in sales
annually, estimates show less than 15% offer automated sunless services
(because the technology is still relatively new). This is why the
automated sunless industry is the fastest growing segment of the indoor
tanning business. In addition to our state-of-the-art sunless systems,
we hold the pioneering patent on UV light emitting diode (LED) tanning
devices, which are currently under development. For efficacy and
efficiency reasons, UV LED tanning devices will ultimately entirely
replace the standard UV bulb technology that has been in use for the
past 15 years. This is truly cutting-edge technology.