FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Palm Beach Tan.
Based on 2025 FDD · 4 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Palm Beach Tan franchise shows an estimated initial investment of $648K – $1.1M. Reported owner economics show $66K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $30K franchise fee · 8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Palm Beach Tan requires a total initial investment of $648K to $1.1M (midpoint approximately $890K), with an initial franchise fee of $30K. The ongoing fee burden is 8% (6% royalty plus 2% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Palm Beach Tan locations is $468K. The implied franchisee EBITDA is approximately $66K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 7.4% with a payback period of approximately 13.6 years.
Palm Beach Tan operates approximately 398 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2011-2026). 12 loans across 7 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about Palm Beach Tan, answered from FDD and SBA data.
The total initial investment for a Palm Beach Tan franchise ranges from $648K to $1.1M, according to their Franchise Disclosure Document.
Palm Beach Tan charges a 6% royalty fee on gross sales.
The initial franchise fee for Palm Beach Tan is $30,000.
There are approximately 398 Palm Beach Tan franchise locations as of 2023.
The median revenue for a Palm Beach Tan franchise is $468K, with a cash-on-cash return of 7.4%, according to FDD Item 19 data.
Palm Beach Tan has an SBA loan default rate of 0.0% based on SBA 7(a) loan data.
Whether a Palm Beach Tan franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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5 data-driven questions every Palm Beach Tan franchise buyer should ask.