Palm Beach Tan is offering franchises to well-capitalized individuals or groups of experienced multi-unit operators of other retail chains who are interested in rapidly developing an entire demographic area. Franchises are available for an initial $30,000 fee. Typical start-up costs have run between $446,696 and $790,750 for each location.
| Start-up Costs |
|
| Total investment: |
$447,000-791,000 |
|
| Franchise fee: |
$30,000 |
|
| Ongoing royalty fee: |
4% to 6% |
|
| Term of agreement: |
10 years, renewable |
|
| Net worth requirement: |
$750,000 |
|
| Cash liquidity requirement: |
$300,000 |
Prerequisite Business Experience
- General business experience
- Marketing skills
- Multi-unit retail development preferred
- Number of employees needed to run franchised unit: 7 to 15
- Absentee ownership of franchise is permitted (15% of current franchisees are owner/operators)
Training
- Available at headquarters: 4 weeks
- At franchisee's location: 5 days
- Store-level tools are made available
Ongoing support
- Site selection assistance
- Prototypical drawings, design manual
- Operations consulting
- Comprehensive set of marketing tools
- Financial reporting system