How Much Does a Sun Tan City Franchise Cost?

A newly constructed 17-bed Sun Tan City Salon requires an estimated initial investment of $1,048,790 to $1,797,750 under the March 31, 2026 Franchise Disclosure Document. The range covers the period before opening and the first three months after opening, but it does not include the cost of acquiring real estate.

Capital snapshot

The following figures answer different questions and should not be added together as though each were outside Item 7.

Item 7 includes 20 cost categories for one newly constructed 17-bed Salon. The two dominant variables are Leasehold Improvements and Tanning and Spa Equipment; together, their disclosed ranges account for most of the difference between the low and high totals.

Premises, equipment and systems

Opening commitments

Readiness costs and the first three months

The disclosed $1,068,790 to $1,817,750 Area Development Agreement range is not the cost to build and open three Salons. It covers the right to develop three Salons plus the cost to open and operate the first Salon for its first three months.

Sun Tan City does not require the entire Item 7 total as one payment. The cash moves through site approval, contract signing, buildout, pre-opening deposits and the first three months of operations.

The franchisor estimates about 180 days from signing or first payment to opening a new Salon, although leasing, financing, permits, zoning, weather and equipment delays can change that period. Separately, the FTC franchise buying guide explains the federal requirement that a prospect receive the FDD at least 14 calendar days before signing a binding agreement or paying the franchisor or an affiliate.

A new franchisee pays an 8% Royalty Fee on Gross Revenue from the Opening Date. The system also requires a minimum advertising expenditure of 3.0% of Gross Revenue, currently including a 2.0% National Marketing Fund contribution. These percentages are operating obligations, not additional Item 7 startup amounts unless an initial payment is expressly included there.

Technology, client service and payment-processing charges

The Item 6 fee schedule also contains fixed, device-based and usage-based system charges. These costs can rise with the number of workstations, devices, staff or services selected.

The 2026 FDD does not publish a separate total-investment range for a Conversion Salon. Some new-build categories may not apply, but the operator may have to spend an undetermined amount to bring the premises, fixtures, equipment, furnishings and signage into conformity with the Sun Tan City System.

The FDD also describes limited testing of a related Wellness City concept with selected franchisees in 2026. It does not provide a separate Item 7 range for that testing and conversion addendum, so the Sun Tan City total should not be treated as a complete Wellness City cost schedule.

Several material obligations have no fixed dollar amount in Item 7. The largest unresolved categories are future remodeling, required equipment updates, technology upgrades, relocation and event-triggered legal or compliance costs.

• Remodeling: STC may require a system-standard remodel, generally not within five years of opening or the last required remodel. The scope and cost are not disclosed; approved work must be completed within 180 days after final-plan approval.
• Technology upgrades: hardware, software and communications must be updated at the franchisee’s expense. The agreement has no contractual cap on frequency or cost, subject to the franchisor’s stated amortization judgment.
• Transfer: $5,000 plus reasonable legal fees, administrative costs and out-of-pocket expenses when an approved transfer occurs.
• Successor franchise: $5,000 at renewal, with a possible remodel and a new agreement that may contain materially different terms.
• Relocation and audit: actual relocation costs are reimbursed to STC; actual audit costs apply if reports are late or an audit finds an understatement of 2% or more.
• Additional training: currently $300 per day, minimum three days, plus transportation, lodging, meals and employee compensation when additional support is required or requested.
• Rush and special service fees: Marketing Rush Fee is $300 plus $100 per hour; IT rush charges are $150 for equipment modification, $250 for price changes and $750 for acquisitions or conversions.
• Other triggers: employee recruitment is $2,500 or $5,000 depending on role; data-query work starts at $150; late payments bear the highest lawful contract rate; enforcement, indemnification, printing, shipping, overdraft and EFT service costs vary.
• Cyber-event charge: Item 11 permits a charge of up to $200 per affected record, or a higher amount later specified, to offset the franchisor’s out-of-pocket response and notification costs.

Real estate acquisition is another explicit exclusion. Item 7 assumes a lease and makes no estimate for purchasing land or a building. Approved-supplier pricing also may not be uniform, and Item 8 estimates that required approved-source purchases can represent 54% to 79% of the total initial investment.

The official new-investor application currently screens for at least $250,000 in liquid capital and $500,000 in net worth. Those thresholds are not the same as the $1,048,790 to $1,797,750 Item 7 investment and do not establish that the remaining capital will be financed.

The current thresholds appear in the franchisor’s official new-investor application. Because an application screen can change independently of the annual FDD, confirm the thresholds and acceptable proof of funds in writing for the specific transaction.

The most useful verification work is specific to the site, equipment schedule, supplier quotes and agreement format. A generic franchise-cost estimate cannot resolve those variables.

The current official starting point is $1,048,790 to $1,797,750 for one newly constructed 17-bed Salon, with Leasehold Improvements and Tanning and Spa Equipment creating the largest disclosed variation. The $50,000 to $100,000 Working Capital line is already inside that total, while the $250,000 liquid-capital and $500,000 net-worth screens are separate qualification measures.

A Conversion Salon has no published replacement total, and a three-Salon Area Development Agreement headline includes only the first Salon’s opening investment plus the net development commitment—not three complete buildouts. The most important unresolved amounts are site-specific construction, conversion conformity work, future remodels, required equipment updates and device- or usage-based operating systems.