From the filed FDD — automated extraction, check the source
2026 FDD
PALM BEACH BEAUTY & TAN
Tanning · parent company: not identified
Palm Beach Beauty & Tan operates tanning and beauty salons offering sunbed tanning, spray tanning, and skincare services on a membership model. A franchisee runs a built-out retail salon with tanning equipment and a front-desk sales staff serving recurring members.
PALM BEACH BEAUTY & TAN net unit count declined 3.2% over 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Proven & steady
A real track record with mixed signals. Units fell 3% (2023–2025: 655 → 634); the fiscal 2025 exit rate was 2.3%, below the 3.8% median across 19 comparable systems (beauty & personal care).
Exit rate · fiscal 2025
2.3%
vs 3.8% median across 19 comparable systems (beauty & personal care)
Cost to open
$755K–$1.3M
Item 7 total investment range
SBA loan losses
No loan record
no SBA 7(a)/504 loans found for this brand
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Data as of 2026-10-29. Figures come from PALM BEACH BEAUTY & TAN's public FDD filings (latest: MN 2026, extracted 2026-07-30) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
What each source says
FDD record · SBA loans · model · auditor
The sources broadly agree, and the verdict follows the FDD's operating record.
FDD record · Item 20
Steady operating record
Units fell 3% (2023–2025: 655 → 634); exit rate 2.3% (fiscal 2025) vs 3.8% median.
SBA loans · vs same-year loans
No SBA loans found
No 7(a)/504 loans matched to this brand.
Modeled risk
Not scored
Too little evidence for the model.
Auditor opinion · Item 21
Clean opinion
Unqualified audit, 2026 FDD. Says nothing about franchisee results.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 9 of 397 franchised outlets left the system — an exit rate of 2.3% (fiscal 2025), vs a 3.8% median across 19 comparable systems (beauty & personal care). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 600 | 655 | 650 |
| Opened | 62 | 7 | 2 |
| Transfers | 1 | 6 | 8 |
| Terminations | 10 | 8 | 8 |
| Non-renewals | 1 | 0 | 1 |
| Reacquired by franchisor | 0 | 0 | 66 |
| Ceased — other reasons | 1 | 0 | 0 |
| Outlets at end | 655 | 650 | 634 |
| Net change | +55 | -5 | -16 |
The franchisor's own finances
FDD ITEM 21 · AUDITED STATEMENTS · 2026 FDD
Grant Thornton LLP gave an unmodified (clean) opinion on the statements in the 2026 FDD; revenue rose 10% from FY2023 to FY2025.
This is the company selling the franchise, not any franchisee. A clean opinion means the statements are fairly presented — not that the business is healthy.
Revenue · FY2025
$18.1M
p. 90 · matched to statement
Net income · FY2025
$7.0M
p. 90 · matched to statement
Where FY2025 revenue came from
58% royalties
1% initial / development fees
Show the statement figures ↓Hide the evidence ↑
| Fiscal year | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Total revenue | $16.5Mp. 90 · matched to statement | $17.0Mp. 90 · matched to statement | $18.1Mp. 90 · matched to statement |
| Royalty revenue | $9.5Mp. 90 · matched to statement | $10.0Mp. 90 · matched to statement | $10.5Mp. 90 · matched to statement |
| Initial / development feesline: Franchise and area developer fees | $302Kp. 90 | $247Kp. 90 | $223Kp. 90 |
| Net income (loss) | $5.6Mp. 90 · matched to statement | $6.2Mp. 90 · matched to statement | $7.0Mp. 90 · matched to statement |
| Cash at year end | not extracted | $1.4Mp. 89 | $4.4Mp. 89 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $30,000 franchise fee (Item 5) and a total investment of $755K–$1.3M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$755K–$1.3M
all-in investment range
Franchise fee (Item 5)
$30,000
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Starts at the Item 19 median of $505K from PALM BEACH BEAUTY & TAN’s latest FDD. Read which units built that figure, then check it with current and former owners.
Royalty you'd pay / yr
$30K
6% of sales, before profit
Over a 10-yr term
$300K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on stylist or technician pay, rent, product, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for PALM BEACH BEAUTY & TAN with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2026 FDD
The headline figure is Total Revenues for 12 months ended Dec 31, 2025, for 314 of 324 outlets open at year end, leaving out stopped operating during 2025. The mean is 9% above the median, so a minority of high-volume units pulls the average up. It shows no costs, so it says nothing about what an owner keeps.
Graded on three things the filing states: coverage (2 points if the figure covers at least 75% of the units it is compared with, 1 point for 50–75%), centre (2 points if it prints both a median and a mean, 1 for one of them), and costs (2 points for costs through a profit line or full cost detail, 1 for some cost items). 5–6 points = More complete, 3–4 = Partial, 0–2 = Limited. The grade describes the disclosure, not the business.
Show the basis ↓Hide the evidence ↑
| What is measured | Total Revenues (revenue) |
| Period | 12 months ended Dec 31, 2025 |
| Whose results | Franchised outlets |
| Units included | 314 of 324 franchised outlets at the end of FY2025 (Item 20) |
| Left out |
|
| Average (mean) | $549K |
| Median | $505K |
| Mean vs median | mean 8.8% above median |
| Met or beat the average | 171 (44%) above average |
| Costs shown | None — sales only |
| Where | p. 64 (Item 19 runs pp. 60–66) |
| The filing's words | “Average and Median Operating Data for the 314 Franchised Sample Locations as of December 31, 2025” |
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
We have no verified public-record signals published for PALM BEACH BEAUTY & TAN. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.
10 questions to ask a PALM BEACH BEAUTY & TAN franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what PALM BEACH BEAUTY & TAN has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
PALM BEACH BEAUTY & TAN’s own Item 20 shows 9 of 397 franchised outlets left the system in fiscal 2025 — about 2.3%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2025
- 02
8 units transferred to new owners in fiscal 2025. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2025
- 03
The system went from 655 units to 634 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2023–FY2025
- 04
You pay 6.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 05
PALM BEACH BEAUTY & TAN makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2026
- 06
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 07
Item 3 discloses 1 legal matter. Do you know what it was about, and was it brought by franchisees?
Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.
FDD Item 3 · 2026
- 08
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 09
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 10
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if PALM BEACH BEAUTY & TAN’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing PALM BEACH BEAUTY & TAN’s numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
PALM BEACH BEAUTY & TAN franchise questions, answered from the filings
How many PALM BEACH BEAUTY & TAN franchised outlets left the system last year?
In PALM BEACH BEAUTY & TAN's latest FDD Item 20 (fiscal 2025), 9 of 397 franchised outlets left the system — an exit rate of 2.3% — compared with a 3.8% median across 19 comparable systems (beauty & personal care) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
How much does a PALM BEACH BEAUTY & TAN franchise cost?
Per PALM BEACH BEAUTY & TAN's 2026 FDD, buying in requires an initial franchise fee of $30,000 (Item 5) and a total initial investment of $755K–$1.3M (Item 7).
What royalty does PALM BEACH BEAUTY & TAN charge?
PALM BEACH BEAUTY & TAN charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does PALM BEACH BEAUTY & TAN disclose earnings (Item 19)?
Yes — PALM BEACH BEAUTY & TAN makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $505K. Read it closely: franchisors choose which units and which metrics to include.