About Sun Tan City Franchise
Sun Tan City is one of the largest indoor tanning franchise brands in the United States, offering UV tanning, spray tanning, and skin care services.
The brand has been franchising since 2007 under STC Consolidated Operations, LLC, and has built a substantial presence across multiple states.
Each salon provides a range of tanning options from basic UV beds to premium sunless spray booths, along with a retail line of lotions and skin care products.
Sun Tan City Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, a minimum of 3.5% of Gross Revenue, including 1.5% contribution to the National Marketing Fund, commencing on the Opening Date; maximum required advertising spend of 5% unless Company and Franchise Salons vote to establish the National Marketing Fund contribution rate at an amount higher than 2% | National brand fund |
| Total Investment Range | $563,289 – $883,529 | Includes build-out, inventory, working capital |
The investment range of $563K–$884K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Revenue) and marketing fee (Currently, a minimum of 3.5% of Gross Revenue, including 1.5% contribution to the National Marketing Fund, commencing on the Opening Date; maximum required advertising spend of 5% unless Company and Franchise Salons vote to establish the National Marketing Fund contribution rate at an amount higher than 2%) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Leasehold Improvements | $150,000 | $250,000 |
| Signs | $4,000 | $10,000 |
| Tanning Equipment | $250,000 | $350,000 |
| Office Equipment, Furniture, Retail Service Counter and Display and Supplies | $15,000 | $20,000 |
| Initial Retail Inventory | $5,000 | $7,000 |
| 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 | $29 | $29 |
| Digital Messaging System (Hardware) | $1,400 | $3,000 |
| Wall System, Interior Signage | $25,000 | $45,000 |
| License/Bonds | $500 | $1,000 |
| Working Capital (Additional Funds over next 3 months) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Software and License Support Fee: $1,500 license fee; $350 annual fee per Salon. Computer Set Up Fee: Currently $600 per Salon. Computer Monitoring and Help Desk Support: Currently $49 per month per workstation for service during normal business hours; after hours/weekend charge: $49 flat fee. MyGlow Onboarding: Currently $25 per location setup. Monthly cost of $10-15 based on average employee count. Business Data Analysis Tool (BDAT): Currently one time charge of $25 per salon. Credit Card Encryption: One time activation fee of $50 per salon; Encrypted credit card reader required for each POS workstation at a current cost of $109.45 each. Current cost for the encrypted service is $8/month plus $0.03 per transaction. |
| Audit Fee | Actual Costs |
| Interest | Highest contract rate of interest permitted by applicable law. |
| Conversion Team On-Site Services | $1,000 |
| Additional Training/Development/Onsite Support | Currently $300 per day (minimum of three days) plus your transportation and living expenses |
| Travel, Lodging and Meal Expenses (for initial training) | Actual costs and fees incurred by us |
| Server Merge Fee | $750 per entity converted or acquired competitor’s database |
| Relocation Costs | Actual Costs |
| Costs and Attorney’s Fees | Actual Costs |
| Employee Recruitment Fee | $2,500 – Salon Director, Salon Director in Training or Training Salon Director; $5,000 District Manager or Trainer |
| Printing and Shipping Expenses for Marketing Materials | Actual costs |
| Overdraft/Services Charges | Our actual cost |
| EFT Services | Our actual cost |
| Music Service | $29 per month per Salon |
| Data Analysis Query Requests | $150 for up to two hours of work and $100 per hour for additional hours |
| Central Contact Center Start-Up Fee | $400 |
| Client Services Fee | Inbound Call fees are currently $457 per month, per Salon for full service, $254 per month, per Salon for limited service or $127 per month, per Salon for IVR. |
| Outbound Calls and Surveys | Fees are based on number of contacts and whether an agent is utilized, with a minimum charge of $150. |
| Digital Messaging Service (GLOW TV) | Currently $115 per device; Service fees: $20 month for first device per Salon; $5 per month for each additional device per Salon. |
| Online Training Seats for Salon Employees | Currently $40 per month per Salon |
| Indemnification Costs | Varies according to loss |
| Enforcement Costs | Will vary |
| Marketing Rush Fee | $300 |
| IT Rush Fee | Varies – Equipment Modification $150; Hours Change $150; Price Change $250; Acquisitions (closing or Converting Salons) $750 |
| PCI Monitoring (SecurityMetrics) | Currently $5 per Merchant ID per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training program before opening your Salon. Forty (40) working hours of on-site, in-salon training for the first Salon. |
| On-the-Job Training | Tanning Consultant Training: Approx. 20 hours; Salon Director Training: 2 weeks; District Manager Training: 2 weeks |
| Training Location | Company Training Salon |
| Additional Training | Additional attendees for initial training: Currently $300 per day on-site training session, minimum of three days, plus transportation and living expenses. Training for additional Salon Operators or replacement Supervisors: Currently $300 per day (minimum of three days) plus your travel related expenses and employee compensation. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | two (2) mile radius |
| Description | We will not locate another franchise, nor ourselves directly or indirectly own or operate, another SUN TAN CITY® Salon within a two (2) mile radius of the Salon (the “Area”). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Sign a new franchise agreement, potentially remodel leasehold, not be in default of any agreement with us, pay a successor franchise fee of $5,000. You may be required to sign a contract with materially different terms and conditions than your original Franchise Agreement. |
| Transfer Fee | $5,000 |
| Transfer Conditions | The proposed transferee must meet our standards as to character, financial resources, and willingness to assume the existing obligations under the Franchise Agreement, and be willing to sign our then-current form of Franchise Agreement, non-competition and release agreements. You must pay our transfer fee of $5,000 and our reasonable legal fees, administrative costs and out-of-pocket expenses incurred. The transferee may be required to sign a contract with materially different terms and conditions than your original Franchise Agreement. |
| Termination for Cause | Material, incurable breaches of Franchise Agreement, including but not limited to: failure to complete initial training, abandonment of salon, material misrepresentation, felony conviction, dishonest conduct, unauthorized assignment, health/safety violations, failure to make payments, failure to pay taxes, failure to comply with other provisions, repeated failures to submit reports/pay amounts, insolvency, failure to appoint Salon Director after death/disability, non-compete violation, confidentiality violation. |
| Non-Compete Period | 24 months |
| Non-Compete Details | After termination or expiration of the franchise agreement, you and your owners may not operate a similar type of business for a period of 24 months (i) at your initial location, (ii) at any additional location you open, or (iii) within 5 miles of any location you open or any other SUN TAN CITY® Salon. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You (or your managing owner) must personally manage and operate the franchise as your primary occupation, or hire and delegate management authority and responsibility to a Supervisor who will personally manage and operate the franchise as their primary occupation. The Supervisor must successfully complete initial training. |
| Required Suppliers | tanning equipment, sunless solutions, tanning lotions, tanning lamps, tanning acrylics, wall systems, ceramic tile, counter systems/shelving, in-salon music, POS computers and software, IT support, advertising and promotional materials, digital signage system and credit card processing integration. |
| Supply Restrictions | You must comply with our System and Standards for all supplies, materials, fixtures, furnishings, equipment and other products used in or offered for sale at the Salon. You must purchase all computer hardware, software and peripherals from us or one of our approved suppliers. We reserve the right to limit the number of vendors and suppliers for products, goods, supplies, fixtures and equipment. We also reserve the right to designate a single source of supply for certain products and services. We or one of our affiliates may be that single source. |
| Franchisor Revenue from Suppliers | In the fiscal year ended December 31, 2021, we received $886,464 in revenue from rebates, discounts and other similar payments from current or former tanworld® franchisees. STC Consolidated Operations, LLC, earned a 4% product credit from a supplier for each $100,000 in lamp purchases by company-owned or franchised SUN TAN CITY® Salons, totaling $25,283 in 2021. STC Consolidated Operations, LLC also received $953,642 in earned credits from an exclusive purchase arrangement with a supplier of tanning lotions and related products, equal to ten percent (10%) of systemwide lotion purchases for the previous year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any affiliate of ours generally offer any direct or indirect financing to you, guarantees any note, lease or obligation of yours or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of yours. |
Sun Tan City Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Sun Tan City Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sun Tan City System Growth
Sun Tan City currently operates 161 franchised locations and 93 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 1 | 167 |
| 2020 | 1 | 1 | 167 |
| 2021 | 0 | 6 | 161 |
Transfers: 0 | Closures: 6
State Registrations
Registered in 15 states: IL, IN, IA, KY, MD, MI, MN, NE, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Mather & Co. CPAs, LLC for year ending December 31.
Sun Tan City Franchise — FAQ
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