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Below is an in-depth analysis and side-by-side comparison of Hollywood Tans vs L.A. Tan 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 | $237,850 - $594,400 |
Franchise Fee | $34,500 | N/A |
Royalty Fee | 7% | - |
Advertising Fee | - | - |
Year Founded | 1994 | 2001 |
Year Franchised | 1998 | 2001 |
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.
L.A. Tan is the fastest growing and most successful tanning salon chain in the U.S. The company's entry in spa and strategic alliances with its vendors has put L.A. Tan far ahead of its competitors.L.A. Tan has established a successful franchising model for its tanning business. The corporate management team, the brand name and the guidance of its CEO, gives each franchisee all the tools that are needed to bring success to their business. L.A. Tan offers an exciting and profitable business opportunity for those who want to become business owners or for those who are just looking for additional sources of income. Its plan is designed to be an "absentee owner" business model. This means, that instead of spending all of their time in the salon helping customers and performing labor duties, the franchisees will have more free time to explore more enjoyable interests. The goal of the company is that all the franchisees should have an enjoyable, profitable, and exciting entrepreneurial venture.