|
Below is an in-depth analysis and side-by-side comparison of Palm Beach Tan vs Executive Tans including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
Investment | $624,438 - $926,790 | $125,000 - $499,000 |
Franchise Fee | $30,000 | $25,000 |
Royalty Fee | 4-6% | $795/mo. |
Advertising Fee | 5.5% | - |
Year Founded | 1990 | 1991 |
Year Franchised | 1998 | 1995 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | Varies | $500 |
Business Experience Requirements |
||
Experience | ||
Financing Options |
||
In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
||
Training | Store level tools are made available On-The-Job Training: 320 hours Classroom Training: 40 hours Additional Training: As needed | - |
Support | Meetings/Conventions Toll-Free Line Grand Opening Online Support Field Operations Site Selection Proprietary Software | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketingLoyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Number of employees needed to run franchised unit: 3 - 5 Absentee ownership of franchise is allowed. (15% of current franchisees are owner/operators) |
14% of all franchisees own more than one unit Number of employees needed to run franchised unit: 1 - 2
Absentee ownership of franchise is allowed. (81% of current franchisees are owner/operators) |
Expansion Plans |
||
US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
Wayne Smeal opened the first Executive Tans in Denver in 1991. The company now operates salons throughout the Southwest that offer customers tanning services and massages as well as swimwear and tanning products.