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SUBJECT DOSSIER · FDD 2026

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.

Hair, Beauty & Personal Care · disclosure-honesty grade · from public state filings

Disclosure honesty

C
Transparency 3 / 5

Palm Beach Beauty & Tan discloses earnings (Item 19) — but the grade is how honestly. We graded it C.

Outlets634
Disclosed lawsuits1
Closure signals1 ceased
Investment
$755,390–$1,263,712
Total fees
9.5% of sales
Outlets
634
Closure signals
1 ceased, 8 terminated
Lawsuits
1
◢ FINDINGS
ITEM 20
1 outlets ceased operations
73 franchised units closed 2025; 66 Ohio franchises reacquired; significant churn indicates system stress.
ITEM 03
1 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

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

FeeDisclosedWhere it comes from
Initial franchise fee$30,000Item 5 — paid up front, before you open
Royalty4% of gross salesItem 6 — charged on revenue, not profit
Advertising fund5.5% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees9.5% of gross salesBefore rent, labor, food or debt service
Total initial investment$755,390 – $1,263,712Item 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 outlets634
Ceased operations1
Terminated by franchisor8
Transferred to new owners8
Closure rate0.2% 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 fees9.5% of salessteeper than 77% of hair, beauty & personal care franchises
Startup costfrom $755,390pricier than 90% of peers
Disclosure honestyGrade Cless honest than most of the category
Closure rate0.2% of outletsabout average
Disclosed lawsuits1about average

Benchmarked against every hair, beauty & personal care franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

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.

LOW
MEDIAN
HIGH

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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.