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Beauty/SalonFull DisclosureItem 19: ✓ DisclosedHigh Confidence · 100/100FDD data: 2025 · Fresh

Palm Beach Tan Franchise Cost and Profit

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

FranchiseIQ Score
74
B
Moderate-Low Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C+
69/100
6/7 metrics · High confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Palm Beach Tan franchise cost and make?

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.

Startup Cost
$648K – $1.1M
Total initial investment
Profit / Revenue
$66K
FDD Item 19 signal
Payback Signal
13.6 years
Modeled return metric
SBA Default Rate
0.0%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Beauty/Salon franchises →Compare similar franchises →

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.

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The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Palm Beach Tan Franchise Analysis

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

Total Investment Range$648K – $1.1M
MinMid: $890KMax

Key Metrics

Franchise Fee
$30K
Royalty Rate
6%
Ad Fund Rate
2%
Total Burden
8.0%
Royalty + ad fund
Units (2023)
398
Net Unit Growth
→ -
Year over year
Cash-on-Cash Return
7.4%
Annual estimated return
Payback Period
13.6 yrs
Break-even timeline
SBA Default Rate
0.0%
vs ~7.2% industry avg
Median Revenue
$468K
Item 19 disclosed
Premium Data

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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Palm Beach Tan vs. Beauty/Salon Average

MetricPalm Beach TanBeauty/Salon Avg
SBA Default Rate0.0%▲7.2%
Cash-on-Cash Return7.4%▼15.5%
Total Investment$890K$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2011-2026). 12 loans across 7 states.

Default Rate
0.0%
Low Risk
Total SBA Loans
12
7 states
Total Loan Volume
$17.1M
SBA 7(a) approved
Avg Loan Size
$1.4M
Per franchisee
Loan Status Breakdown
6
Paid in Full (50%)
5
Currently Active
0
Charged Off
$0
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

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Questions to Ask Before You Sign

5 data-driven questions every Palm Beach Tan franchise buyer should ask.

  1. 1.What is Palm Beach Tan's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Palm Beach Tan disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Palm Beach Tan →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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