How much does a Palm Beach Tan franchise cost?
A newly constructed Palm Beach Tan • Wellness Location requires an estimated initial investment of $755,390 to $1,263,712 under the 2026 Franchise Disclosure Document. The disclosed model is a roughly 2,200- to 2,600-square-foot shopping-center location; it is not a separate cost estimate for a conversion or acquisition.
Estimated Initial Investment: one newly constructed Palm Beach Tan • Wellness Location.
The total includes a $30,000 Initial Franchise Fee and $60,000 of Additional Funds for three months. It excludes sales tax and several expressly identified variables, including possible fire-protection work.
Sources: 2026 FDD, cover and Items 5–7, pp. 7–18; official franchise FAQ checked July 14, 2026.
What is included in the official investment range?
The 2026 Item 7 total combines the franchise entry payment, premises work, equipment, technology, opening inventory, launch expenses, training-related outlays, insurance and a three-month operating reserve. The largest disclosed variables are Tanning and Related Equipment and Leasehold Improvements.
Interpretation: equipment and build-out explain most of the disclosed spread. The $60,000 Additional Funds allowance is fixed in the table, not a range.
Source: 2026 FDD, Item 7, pp. 14–18. Values are official FDD figures; the geometry is a direct scale conversion.
Premises, systems and equipment
| Expenditure | 2026 amount | When due | Payee |
|---|---|---|---|
| Leasehold Improvements | $250,000–$400,000 | As arranged | Contractor |
| Prepaid Rent and Security Deposit | $5,120–$17,500 | At lease execution | Landlord |
| Furniture and Fixtures | $52,500–$115,000 | As arranged | Suppliers |
| Tanning and Related Equipment | $272,519–$509,572 | As arranged | Suppliers |
| Computer Hardware and Software | $6,941–$10,190 | As arranged | Palm Beach Tan Franchising, Inc. |
| PBTV Mobile App | $50 | As arranged | Supplier |
| Music System with Installation | $2,500–$4,400 | As arranged | Supplier |
| Security System, including CCTV | $2,000–$3,000 | As arranged | Suppliers |
Source: 2026 FDD, Item 7, pp. 14–15.
Launch, training and operating reserve
| Expenditure | 2026 amount | Timing | Important scope |
|---|---|---|---|
| Initial Inventory of Lotions, Solutions and Supplies | $17,500–$18,500 | As arranged | Includes supplies for approximately 450 tans |
| Signage | $6,700–$22,000 | As arranged | Indoor and outdoor signage |
| Professional Services | $15,000–$20,000 | As arranged | Attorneys, accountants and architects |
| Utility Deposits and Permits | $60–$6,000 | As arranged | Municipality-dependent |
| Grand Opening | $20,000 | As arranged | Required amount; franchisee may spend more |
| In-Location Merchandising Kit | $3,000–$5,000 | As arranged | In-store graphics and materials |
| Local Marketing Kit | $3,000–$4,000 | As arranged | External promotional materials |
| Initial Training / Pre-Opening Training | $2,500–$4,500 / $2,000–$4,000 | At training / as arranged | Travel for two people; employee payroll and meeting space |
| Insurance | $4,000–$10,000 | As arranged | Estimated down payment on annual premiums |
| Additional Funds | $60,000 | Initial three months | Working-capital allowance included in total |
Source: 2026 FDD, Item 7, pp. 14–18. The separate $30,000 Initial Franchise Fee is summarized above.
The FDD cover states that $36,941 to $40,190 of the new-build total is paid to the franchisor or its affiliate. That amount corresponds to the $30,000 Initial Franchise Fee plus the disclosed Computer Hardware and Software range; it is already inside Item 7 and should not be added again.
When is the money paid?
The cash requirement arrives in stages rather than as one payment. Contract-signing payments occur first; lease deposits, construction, equipment and launch costs follow as the project advances; the $60,000 Additional Funds allowance is intended for the initial three-month operating period.
Development Agreement, when applicable
At signing, the Development Fee equals 100% of the Initial Franchise Fee for the first Location plus $5,000 for each additional Location. The allocable amount is credited against each Location's Initial Franchise Fee and is nonrefundable.
Franchise Agreement
The $30,000 Initial Franchise Fee, less any Development Fee credit, is due in a lump sum when the Franchise Agreement is signed.
Lease execution
Prepaid Rent and Security Deposit of $5,120 to $17,500 is due to the landlord. The range assumes one to two months of rent under the FDD's stated rent assumptions.
Build-out and equipment procurement
Leasehold Improvements, Furniture and Fixtures, Tanning and Related Equipment, computer systems, signage and other supplier costs are paid “as arranged” under third-party schedules.
Training and pre-opening
Initial Training expenses are due upon attending training. Payroll, meeting space, insurance, inventory, marketing kits and the required $20,000 Grand Opening spending are funded before opening as arranged.
First three months
The Item 7 total includes $60,000 of Additional Funds. The FDD warns that actual cash needs may be higher and does not expressly state that owner compensation is included.
Item 5 states that the initial fees are nonrefundable. Item 6 likewise states that its fees and expenses are nonrefundable unless the table indicates otherwise.
Sources: 2026 FDD, Items 5 and 7, pp. 7–18; Item 1, p. 5, for the development path.
Do conversions, acquisitions and multi-unit deals use the same cost range?
No. The $755,390 to $1,263,712 range is expressly for a newly constructed Location. The 2026 FDD identifies other development paths but does not publish separate total-investment ranges for them, so their capital needs cannot be calculated from the new-build table without guessing.
Newly constructed Location
Item 7 assumes approximately 2,200 to 2,600 square feet. The low equipment configuration corresponds to the smaller store and the high configuration to the prototypical 2,600-square-foot store.
Conversion Location
Existing tanning salons may need work identified by a Store Conversion Audit Form. Palm Beach Tan may negotiate the Initial Franchise Fee or reimburse certain conversion costs, but no conversion total is disclosed. The official conversion information describes the program without replacing the FDD cost analysis.
Acquisition Location
An existing franchisee acquiring an independent salon pays a $500 Database Conversion Fee per database when Palm Beach Tan converts the data to its point-of-sale system. The FDD does not give a separate acquisition investment range.
Development Agreement
The Development Fee changes the upfront contract payment, not the disclosed per-Location Item 7 range. Each additional Location requires a separate Franchise Agreement and its own site-specific capital.
The equipment range is tied to a Palm Beach Tan • Wellness configuration that includes tanning, sunless and wellness units. A conversion's usable existing equipment may reduce some purchases, while required replacements, reconfiguration and brand-standard work may add others; the FDD leaves that result to the audit and negotiated transaction terms.
Which fees continue after opening?
After opening, the main sales-based obligations are a phased Royalty Fee and a total required advertising assessment of 5.5% of Gross Sales. Separate monthly technology, service and compliance fees also continue.
Interpretation: the advertising requirement stays at 5.5% while the Royalty Fee rises from 4% to 6% as the Location moves through its first two years.
Source: 2026 FDD, Item 6, pp. 9 and 14. Combined totals are derived calculations: Royalty Fee + 3.5% Local Advertising + 2% Advertising Fund.
Monthly systems and service charges
| Fee or service | Disclosed amount | Basis | Recipient |
|---|---|---|---|
| Music Service | About $43–$59.95 | Per month | Approved supplier |
| PBTV and Digital Development | $49.95 | Per month per Location | Franchisor by electronic transfer |
| FAC Fund | $25 | Per month per Location | Franchisor |
| Customer Experience Management Program | $40 | Per month per Location | Collected by franchisor |
| Employee Recruitment and Applicant Tracking System | $28.50 | Per month per Location | CareerPlug |
| Digital Support Program | $125 | Per month per Location | Franchisor |
| Operational Audit Program | About $75 | Per month per Location | Third-party contractor |
| SunLync and Software Support Fee | $300 | Per month per Location | Franchisor |
Source: 2026 FDD, Item 6, pp. 10–11. Supplier prices and underlying-cost pass-throughs may change.
- EFT Services
- Actual cost plus $0.25 per transaction, deducted from amounts processed.
- Gross Sales
- The FDD's defined revenue base, subject to listed exclusions and gift-card redemption rules; percentage fees must be applied to that definition, not an assumed accounting measure.
- Payment timing
- The Royalty Fee and Advertising Fund contribution are due on the 10th day of the month for the preceding month; Local Advertising is measured each calendar year.
- Cooperative Advertising
- May be required in a designated market, but it is allocated within the total 5.5% advertising assessment rather than added above it.
Which later events can create additional charges?
Item 6 also contains event-triggered fees that may not occur during ordinary operation but can be material in a transfer, renewal, default, audit, insurance lapse or additional-development decision.
Transfer Fee: $5,000 plus reasonable costs and expenses. Renewal Fee: $7,500. Item 17 also requires upgrades to then-current standards as a renewal condition, without a fixed remodel amount.
Overdraft/Service Charges equal actual cost. Interest is the lesser of 18% per year or the highest legal rate.
Additional and remedial training may carry a reasonable fee plus costs; later opening assistance and a subsequent-Location site evaluation may require reimbursement of expenses.
Audit costs apply if reported amounts are understated by 3% or more. Inspection/testing costs may be billed in specified circumstances. If required insurance is not maintained, the charge is actual cost plus 10%.
Liquidated Damages are $30,000 if termination occurs within the first 12 months. Later, the formula uses average monthly Royalty Fees and Advertising Fund contributions, remaining term and a $30,000 minimum.
Securities-offering review, indemnification and enforcement costs vary. Additional development after the Development Agreement term uses the then-current Development Fee.
Sources: 2026 FDD, Item 6, pp. 9–13; Item 17, pp. 45–51.
How much liquid capital and net worth does Palm Beach Tan require?
The official franchise FAQ lists $250,000 in liquid assets and $500,000 in net worth. These are screening qualifications, not substitutes for the 2026 Item 7 investment range: liquid assets are cash-like resources, while net worth includes assets that may not be available to fund construction and opening costs.
The official franchising FAQ also displays an older initial-investment range that does not match the April 23, 2026 FDD. Treat the $250,000 liquid-assets and $500,000 net-worth figures as current website screening language checked July 14, 2026, but ask Palm Beach Tan to confirm that the thresholds apply to the Palm Beach Tan • Wellness offer and the proposed development schedule.
The FDD does not disclose a separate non-borrowed-funds minimum. It does state that designated Controlling Principals generally must personally guarantee performance under the Franchise Agreement and Development Agreement unless Palm Beach Tan agrees otherwise.
Is financing available?
Palm Beach Tan Franchising, Inc. does not directly finance the investment and does not guarantee a franchisee's note, lease or obligation. Item 10 says qualified franchisees may be eligible for financing through ApplePie Capital, Inc. and its network of lenders, with no standard terms and no requirement to use that channel. ApplePie Capital's official information states that lenders independently determine availability and terms, so the relationship is not an approval commitment.
Sources: official Palm Beach Tan FAQ checked July 14, 2026; 2026 FDD, Item 1, p. 5, and Item 10, p. 24.
What does the official range not fully resolve?
The Item 7 total is a franchisor estimate, not a cap. Several costs are outside the range or depend on market, site, supplier and project conditions.
Sales tax: all Item 7 amounts are stated exclusive of sales tax.
Fire protection: an additional $7,000 to $15,000 for sprinklers or similar work may be required and is not reflected in the table.
Freight and installation travel: computer freight and certain PC-installation travel or out-of-pocket costs are outside the computer estimate; PBTV-related shipping is also extra.
Landlord contribution: the low Leasehold Improvements estimate assumes a $35-per-square-foot finish-out allowance, while the high estimate assumes no landlord contribution and higher labor costs.
Working capital: the $60,000 Additional Funds allowance covers three months, but the FDD says actual expenses and cash reserves may be higher.
Future systems: the Franchise Agreement may require hardware, software, enhancements or upgrades, and the FDD states there is no contractual limit on their frequency or cost.
The live official start-up cost summary still shows a lower tanning-equipment range, and the official FAQ shows a lower total investment. For the current Palm Beach Tan • Wellness offer, this article uses the newer 2026 FDD figures. A prospective franchisee should obtain a written reconciliation before relying on any website budget.
The Federal Trade Commission explains that an FDD is the document used to investigate a franchise's fees, controls and contractual obligations. Its Consumer's Guide to Buying a Franchise provides the cost-review framework, and the FTC Franchise Rule is the federal disclosure rule. Neither source replaces the brand's current Item 5, Item 6 and Item 7 figures.
What is the capital decision in practical terms?
The verified 2026 starting point is $755,390 to $1,263,712 for one new-build Palm Beach Tan • Wellness Location. The principal range drivers are Tanning and Related Equipment, Leasehold Improvements and Furniture and Fixtures. The $30,000 Initial Franchise Fee, $60,000 Additional Funds, website financial qualifications and post-opening percentage fees measure different obligations and should not be treated as interchangeable cash requirements.
The most important unresolved question is site- and format-specific: whether the project is a new build, Conversion Location, Acquisition Location or multi-unit development, and which costs the landlord, existing assets, suppliers or negotiated conversion terms will actually absorb.