Sun Tan City

Sun Tan City Franchise FDD, Costs & Fees (2025)

Sun Tan City is a tanning salon franchise that offers a range of tanning options, promoting a sun-kissed glow and healthy-looking skin for clients.

Sun Tan City, founded in 2007, has become a prominent player in the indoor tanning industry, especially after launching its franchising operations in 2007. This network of tanning salons is celebrated for delivering top-notch tanning services in a clean, tranquil setting, assisted by knowledgeable tanning consultants.

Based in Louisville, Kentucky, Sun Tan City has significantly impacted the beauty sector with its distinctive business model. The franchise provides a unique blend of luxury indoor tanning with the speed and convenience suited to today's busy lifestyles.

Sun Tan City's dedication to quality service and customer satisfaction, paired with a robust business model and comprehensive support system, makes it an attractive opportunity for entrepreneurs interested in the indoor tanning industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $0 - $30,000
Leasehold Improvements $250,000 - $350,000
Exterior Signage $6,000 - $10,000
Tanning and Spa Equipment $300,000 - $500,000
Office Equipment, Furniture, Retail Service Counter and Display and Supplies, Interior Signage $30,000 - $45,000
Initial Retail Inventory $6,000 - $8,000
Start-Up Marketing $10,000 - $13,000
Insurance $2,000 - $6,000
Lease Deposits $5,000 - $10,000
Professional Fees $500 - $5,000
Your Out-of-Pocket Expenses to Bring in Our Trainers/Field Support $1,000 - $5,000
Computers and Software $7,000 - $10,000
Utility Deposits $1,500 - $5,000
High Speed Internet Access $60 - $2,000
Pre-Opening Training $5,000 - $10,000
Security System $300 - $1,500
Music System $30 - $250
Digital Messaging System (Hardware) $1,400 - $3,000
License/Bonds $500 - $1,000
Working Capital (Additional Funds over next 3 months) $50,000 - $100,000
Total $676,290 - $1,114,750

Franchise Disclosure Document

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Competitors

Below are some of

Sun Tan City

key competitors in the

Waxing, Tanning

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Sun Tan City
2007
162
+
1%
1%
$30,000
8.00%

$676,000

-

$1,115,000

n.a.

$563,000

Upgrade

n.a.

n.a.

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n.a.

n.a.

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2021
0
+
n.a.
n.a.
$60,000
8.00%

$255,000

-

$486,000

Upgrade

n.a.

$713,000

85.0%

n.a.

Upgrade

33.5%

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2023
0
+
n.a.
n.a.
$60,000
6.00%

$303,000

-

$417,000

Upgrade

n.a.

$477,000

62.8%

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2020
5
+
n.a.
n.a.
$45,000
6.00%

$293,000

-

$512,000

Upgrade

n.a.

$256,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2006
32
+
10%
10%
$45,000
7.00%

$328,000

-

$559,000

Upgrade

n.a.

$559,000

90.2%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2017
107
+
346%
346%
$45,000
5.00%

$199,000

-

$301,000

Upgrade

n.a.

$377,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2019
0
+
n.a.
n.a.
$42,500
7.00%

$435,000

-

$711,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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Watchlist

?

Priority support

?

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Training 

The franchisor offers a comprehensive training program to its franchisees, covering several essential components:

Franchisee Training Program

  • Conducted by Certified Training Salon Directors, supervised by Lauren Kron.
  • Typically held at Company Salons.
  • Mandatory for day-to-day operators and available for other employees.
  • Participation is free, excluding travel expenses and employee compensation.

New Salon Opening and Training

  • A 40-hour grand opening training program is provided at no cost for the first Salon.
  • Covers new salon setup and organization, along with Salon Director support and training.

First Role Certification

  • Includes training and certification for roles such as Salon Director, District Manager, Training Salon Director, and Trainer.
  • Conducted at Company Training Salons at no cost, except for travel expenses and employee compensation.
  • Franchisees must handle training and certification for additional Salons.

Territory Protection

The Sun Tan City franchise does not provide exclusive territories to its franchisees. This means franchisees may encounter competition from other franchisees, company-owned outlets, or other distribution channels managed by the franchisor.

While this lack of exclusive territory can lead to increased competition, it also offers opportunities for growth and expansion within the network. Franchisees can leverage the strong brand presence and comprehensive support system to compete effectively in their local markets, ensuring a high standard of service and customer satisfaction.

Number of units

2025
Franchised units

160

165

162

Company-owned units

91

88

90

Total units

251

253

252

Competitors

goGLOW

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$255,000 - $486,000

Sugaring LA

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$303,000 - $417,000

Waxxpot

Franchisees

?

5
+
n.a.
n.a.
Investment

?

$293,000 - $512,000

Uni K Wax

Franchisees

?

32
+
10%
10%
Investment

?

$328,000 - $559,000

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Revenue (AUV)

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?

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