Palm Beach Beauty & Tan Franchise
Cost, fees, owner earnings, closure rate and litigation for a Palm Beach Beauty & Tan franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Palm Beach Beauty & Tan discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Company-owned locations averaged $524k revenue, $132k EBITDA (25% margin). 310 units analyzed; franchised locations averaged $549k revenue. Results heavily depend on EFT membership penetration (66-68% of revenue), requiring 3-4 years to achieve.
What a Palm Beach Beauty & Tan franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $30,000 | Item 5 — paid up front, before you open |
| Royalty | 4% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 5.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $755,390 – $1,263,712 | Item 7 — franchisor's own low/high estimate |
Royalty escalates: 4% year 1, 5% year 2, 6% thereafter. Ad fund 2% + local 3.5% max 5.5% total. Multiple ongoing software/support fees ($300-$125/month).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Palm Beach Beauty & Tan system size and owner turnover
| Total outlets | 634 |
| Ceased operations | 1 |
| Terminated by franchisor | 8 |
| Transferred to new owners | 8 |
| Closure rate | 0.2% of outlets |
73 franchised units closed 2025; 66 Ohio franchises reacquired; significant churn indicates system stress.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Palm Beach Beauty & Tan worth it? — how it compares to 47 similar franchises
| Ongoing fees | 9.5% of sales | steeper than 77% of hair, beauty & personal care franchises |
| Startup cost | from $755,390 | pricier than 90% of peers |
| Disclosure honesty | Grade C | less honest than most of the category |
| Closure rate | 0.2% of outlets | about average |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every hair, beauty & personal care franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Palm Beach Beauty & Tan
The franchisor's framing: Company-owned locations averaged $524k revenue, $132k EBITDA (25% margin). 310 units analy… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Palm Beach Beauty & Tan franchise — frequently asked
- How much does a Palm Beach Beauty & Tan franchise cost?
- The FDD lists a total initial investment of about $755,390–$1,263,712, including a $30,000 initial franchise fee.
- How much do Palm Beach Beauty & Tan franchise owners make?
- Company-owned locations averaged $524k revenue, $132k EBITDA (25% margin). 310 units analyzed; franchised locations averaged $549k revenue. Results heavily depend on EFT membership penetration (66-68% of revenue), requiring 3-4 years to achieve. We grade this disclosure C for honesty.
- What are the Palm Beach Beauty & Tan franchise fees?
- Palm Beach Beauty & Tan's FDD discloses a $30,000 initial franchise fee, a 4% royalty on gross sales, a 5.5% advertising-fund contribution, for roughly 9.5% of gross sales in recurring fees before rent, labor, or debt service. Royalty escalates: 4% year 1, 5% year 2, 6% thereafter. Ad fund 2% + local 3.5% max 5.5% total. Multiple ongoing software/support fees ($300-$125/month).
- What is the Palm Beach Beauty & Tan franchise profit margin?
- Palm Beach Beauty & Tan does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Company-owned locations averaged $524k revenue, $132k EBITDA (25% margin). 310 units analyzed; franchised locations averaged $549k revenue. Results heavily depend on EFT membership penetration (66-68% of revenue), requiring 3-4 years to achieve. Recurring fees alone take about 9.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Palm Beach Beauty & Tan franchise failure rate?
- 73 franchised units closed 2025; 66 Ohio franchises reacquired; significant churn indicates system stress.
- How many Palm Beach Beauty & Tan locations are there?
- Palm Beach Beauty & Tan's FDD reports 634 total outlets, with 1 that ceased operations in the most recent reporting year and 8 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Palm Beach Beauty & Tan have complaints or lawsuits?
- Palm Beach Beauty & Tan discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Palm Beach Beauty & Tan franchise worth it?
- It depends on the numbers, not the pitch. Palm Beach Beauty & Tan scores C on disclosure honesty, carries about 9.5% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Palm Beach Beauty & Tan or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.