Start a The Palms Tanning Resort Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $490K - $517K

Units as of 2021: 4 0.0% over 3 years

Since its inception in 2003, The Palms Tanning Resort has worked to revolutionize the indoor tanning industry. With its corporate headquarters in Greenwood Village, Colorado, The Palms Tanning Resort seeks to provide its customers with unlimited tanning experiences. For instance, The Palms Tanning Resort customers can choose to go sunless (indoors), try a cocktail, relax in a sunbed, take advantage of red light therapy, and benefit from monthly rewards.

The Palms Tanning Resort may focus mainly on offering high-end tanning services; the tanning beds and products used are sampled from high-quality ingredients. With these luxurious resort experiences, a The Palms Tanning Resort franchisee may transport customers to a lush, tropical world where they can escape their everyday lives and benefit from the tranquility that comes with tanning services.

Why You May Want to Start a The Palms Tanning Resort Franchise

Apart from offering high-end resort services, The Palms Tanning Resort wishes to thrive on maintaining long-term and healthy relationships with its customers. The company puts its foundation in service, value, and quality. An ideal franchisee values healthy customer relationships and is interested in operating an indoor tanning business.

The Palms Tanning Resort may be a locally recognized market segment with salons throughout the Denver, Colorado metro area. In that case, opening a The Palms Tanning Resort franchise could have a more predictable outcome than investing in a completely new brand that may struggle to thrive in an already crowded and competitive industry.

What Might Make a The Palms Tanning Resort Franchise a Good Choice?

The Palms Tanning Resort has been franchising since 2003. It is seeking franchisees in select states across the United States. The Palms Tanning Resort aims to understand its target audience and loyal customers.

To be part of The Palms Tanning Resort franchise team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How to Open a The Palms Tanning Resort Franchise

Before opening a The Palms Tanning Resort location, research your community to ensure that indoor tanning services can do well in your area. Due diligence is also important before signing up or committing to anything. To achieve this, you can seek out information from current The Palms Tanning Resort franchisees.

If awarded a franchise, franchisees may receive a great deal of support from The Palms Tanning Resort franchise brand throughout the franchising process. In addition to pre-opening training, The Palms Tanning Resort franchisees could receive support through brand awareness, marketing, research, and construction. Franchisees may also receive hands-on training and continued support after their franchise location has opened.

A typical franchise agreement runs for ten years. Franchisees may be allowed to renew their agreement if they meet The Palms Tanning Resort franchise requirements.

Company Overview

About The Palms Tanning Resort

Industry	Personal-Care Businesses
Related Categories	Tanning, Miscellaneous Personal-Care Businesses, Salon & Spa Services
Founded	2003
Leadership	Keith Rodenberger, Owner
Corporate Address	8577 E. Arapahoe Rd., #A Greenwood Village, CO 80112
Social	Facebook, Twitter

Business Overview

Franchising Since	2003 (21 years)
# of employees at HQ	2
Where seeking	This company is offering new franchises in the following US states: Colorado
# of Units	4 (as of 2021)

Information for Franchisees

Here's what you need to know if you're interested in opening a The Palms Tanning Resort franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$35,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$489,750 - $517,000
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	The Palms Tanning Resort has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	40 hours
Ongoing Support	Newsletter Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software
Marketing Support	Co-op Advertising Ad Templates Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	3-5
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes