Why buy a tanning franchise in the first place?

What buying a tanning franchise really costs you.

Most people buy a tanning franchise because they need assistance with one or more of the following items:

  • Market feasibility research
  • Retail site selection
  • Tanning equipment selection & project financing
  • Floor plan design and decor
  • Commercial retail lease review and negotiation
  • Advertising and marketing
  • Operating procedures and salon management

Success is not Guaranteed by Tanning Franchisers

Tanning franchises often give people the false impression that they will be more successful and earn more profits by becoming a franchisee or that somehow owning one will be a road to easy money. Also, some people may have the notion that a franchise corporation can exist only if their business models and methods actually work. The truth is that like any business, hard work, dedication and careful planning are the primary factors for success. Buying a tanning franchise doesn't always increase your chance for success but it will always increases their chance for success.

Creating a franchise corporation, defining its operating procedures and legalizing the franchise contract is a relatively inexpensive process (it costs about the same as building a mid-sized tanning salon) which makes it possible for just about anyone to do. It is reasonable to think that some tanning franchises came about because they failed to make a good profit as an independent salon business so they converted to a franchise in order to boost revenue. After all, when marketed correctly, even an ineffective franchise can make money from new entrepreneurs like yourself.

Tanning Franchisers Often Shift their Focus Away From Innovation

Consider this: once a franchise is born, their focus becomes selling more franchises because that is where the money is. This shift in focus effectively stops innovation at the salon level. Most all of their resources, their time and their efforts are channeled into making money for themselves and not into making a better, more effective and more profitable tanning salon.

We feel franchising is a good deal for the tanning franchiser, but it is a pretty lousy deal for the entrepreneur seeking to start a tanning salon. InSun can teach you how to open a tanning salon without buying a tanning franchise and how to keep more of your hard-earned profits for yourself.

Tanning Salon Franchise Fees Could Cost You $361,150.

The fees are staggering.

Here is a breakdown of the fees you will pay on top of the construction costs, tanning bed costs and the inventory costs when you buy a franchise:

  • Initial franchise fees
  • Royalty fees
  • Training fees, initially and on-going
  • On-site management fees
  • Renewal fees / Transfer fee
  • Consulting fees
  • Site selection fees
  • Auditing fees
  • Accounting fees
  • Filing fee
  • Application fees
  • Exclusive territory fees
  • Equipment Leasing fees
  • Blueprint and construction specification fees
  • Grand opening fees
  • Special (mystery) fees

Your losses can be huge

Based on the above fees and the average revenues of tanning franchises, buying a franchise could cost you $361,150+ in lost profits in just the first 10 years of business.

Buy the tanning franchise three pack and you waste over $1 million. Start five tanning franchises and pay $1,805,750 in just 10 years. Double that loss if your salons survive 20 years. And with this kind of lost revenues, how tough will it be to sell your salon? Why would anyone want to buy it knowing how much of a drain on profits it is?

Ask yourself what you would do with an extra $361,150, or $1,083,450, or $1,805,750! You would be financially set for life just by setting aside the money you save by avoiding the high cost of tanning salon franchise ownership.