About Tan Republic Franchise
Tan Republic is an upscale tanning, skin care, and beauty services franchise offering a wide range of treatments including tanning, beauty services, and related spa services along with retail merchandise.
Franchising since 2008, the brand targets women and men ages 18 to 70 and also offers a co branded option that allows owners to operate a Tan Republic alongside another compatible business concept.
The franchise fee is calculated based on territory population, ranging from $7,500 for areas under 15,000 people to $25,000 for populations over 30,000, with a special $5,000 conversion fee for existing tanning salons.
Tan Republic Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $5,000 to $25,000 (varies by territory population, $5,000 for conversion) | One-time payment upon signing |
| Royalty Fee | 6% of Gross Monthly Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Monthly Revenue | National brand fund |
| Total Investment Range | $112,250 – $577,000 | Includes build-out, inventory, working capital |
The investment range of $112K–$577K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Monthly Revenue) and marketing fee (1% of Gross Monthly Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $5,000 | $25,000 |
| Utilities Deposits and Payments | $0 | $2,000 |
| Furnishings | $2,000 | $5,000 |
| Fixtures | $2,000 | $5,000 |
| Equipment (including Tanning Beds; Spray Tanning or Skin Care, and Spa Equipment) | $50,000 | $300,000 |
| Computer Hardware and Software, Scanner, Digital Camera and Closed-Circuit TV Advertising and Security System | $1,500 | $5,000 |
| Signage | $2,000 | $15,000 |
| Franchise Premises Rent and Buildout/Leasehold Improvements (deposit & 3 months) | $20,000 | $150,000 |
| Washer, Dryer and Start-up Equipment | $500 | $2,000 |
| Inventory (including lotions, materials, towel and supplies) | $2,500 | $5,000 |
| Employee Wages (3 months) | $12,000 | $24,000 |
| Initial Advertising and Promotion | $2,500 | $5,000 |
| Travel and Living Expenses While Training | $500 | $2,000 |
| Insurance (year) | $2,000 | $7,000 |
| Miscellaneous Opening Costs | $1,000 | $5,000 |
| Additional Funds - 3 Months | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Not more than $5,000 |
| Renewal Fee | $1,000 |
| Technology Fee | $79 per month per license |
| Audit Fee | Reimbursement for audit costs if understatement by more than 2% or failure to report |
| Local Advertising Requirement | 2% of Gross Revenue |
| Regional Advertising Cooperative Fund | Up to 2% of Gross Revenue |
| Additional Training | Up to $500 per day plus expenses |
| Additional Assistance | Up to $500 per day plus expenses |
| Late Charges | Prime plus 10% |
| Fines for Non-Compliance with Franchise Agreement | From $1 to $500 per occurrence |
| Collection Costs | All collection costs, including reasonable attorney fees |
| Default Termination Security Deposit | $5,000 |
| Automatic Payment Processes (Returned Payment Fee) | $50 per unsatisfied attempt |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Mandatory training must be completed within 180 days of signing the Franchise Agreement. The Initial Training Program consists of 13 hours of classroom training and 36 hours of on-the-job training. |
| Classroom Training | 13 hours |
| On-the-Job Training | 36 hours |
| Training Location | Franchisor's offices or a franchise salon in Portland or Salem, Oregon, or other mutually agreed upon locations. |
| Additional Training | Optional additional training is available at the franchisee's expense. Refresher training programs or seminars may be provided periodically, with franchisees or managers required to attend up to 12 hours annually, at their own expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Defined territory, non-exclusive but protected from franchisor and other franchisees under the same marks. |
| Exclusive Territory | No |
| Territory Size | 15,000 to 50,000 persons (population) |
| Description | Defined by zip codes, political, geographical, or similar boundaries, or outlined in a map attached to the Franchise Agreement as an Exhibit. The exact determination depends on market analysis, penetration plans, and existing commitments. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 years or to match the initial term of your real estate lease |
| Renewal Term | 5 years |
| Renewal Fee | $1,000 |
| Renewal Conditions | Franchisee must be in good standing, pay a $1,000 Renewal Fee, give notice 6-9 months before expiration, faithfully perform under the initial agreement, refurbish/remodel/replace premises and obsolete equipment, sign a general release, sign a new agreement (potentially with different terms), and undergo retraining. |
| Transfer Fee | Not more than $5,000 |
| Transfer Conditions | Transferee must qualify as a franchisee, assume obligations, not be in default, complete mandatory training, sign a new franchise agreement on current terms, and release the franchisor. The franchisor has the right to approve all transfers. |
| Termination for Cause | The franchisor can terminate for default. Curable defaults have a 30-day cure period. Noncurable defaults include bankruptcy, abandonment, repeated default, misrepresentations, criminal conviction, non-compliance with laws, non-payment of fees, repeated under-reporting of sales, and disclosure of information. |
| Non-Compete Period | 730 days |
| Non-Compete Details | No competition is allowed for 730 days within 100 miles of the franchisee's territory, 100 miles of any other Tan Republic operation, or any part of the United States of America. This applies to the franchisee, owners, shareholders, partners, directors, officers, employees, consultants, distributors, or agents, and their immediate families/households. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor recommends that the franchisee or one of its owners participate fully in the day-to-day operation. If not, a designated manager who has completed mandatory training must run daily operations. Operating principals are required to oversee accounting, reporting, and bookkeeping; attend all training and meetings; be involved in site selection, construction, remodeling, and personnel decisions; conduct frequent inspections; and work sufficient hours to ensure maximum capacity and efficiency. |
| Required Suppliers | Franchisees are required to obtain all lotions and other tanning and skin care products, tanning beds, sunless tanning booths, skin care equipment, spa fixtures, furnishings, and equipment from the franchisor or sources approved by the franchisor and according to specifications. Currently, UV-Free Norvell™, Mystic Tan™ and Versa-Spa™ are used for sunless tanning services, and lotions developed and offered by New Sunshine are exclusively used. |
| Supply Restrictions | Franchisees may not sell or dispense any products, lotions, services, or activities other than those specifically recognized and approved by the franchisor. They may not offer distilled spirits, beer, or wine, nor install vending machines, juke boxes, games, or musical devices without prior written approval. The franchisor may restrict franchisees from producing, stocking, and selling certain services and goods. Franchisees may request approval for products, equipment, supplies, or materials from unapproved sources, subject to franchisor's specifications, testing, and a reasonable license fee for approved suppliers. |
| Franchisor Revenue from Suppliers | The franchisor may derive income from providing signs and name-branded product inventory. Approximately 6% to 10% of total revenues ($276,160 or 19% of $1,467,731 in 2023) are from signs and products purchased from the franchisor or its affiliates. Purchases from the franchisor or approved suppliers are estimated to be 65% to 80% of total establishment purchases and 25% to 75% of total operating purchases. The franchisor may receive rebates, price adjustments, or discounts from recommended or approved suppliers, currently amounting to a 3% discount on products purchased from suppliers. Specific rebates received in 2023 include: Four Seasons ($26,217), In the Black Financial Services, LLC ($8,400 from JK Products’ software processing partnership), Ascentium Capital ($0 referral fee), and Sunless Inc. ($14,541). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee franchisee notes, leases, or obligations. Franchisees are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program. |
Tan Republic Franchise Earnings — Item 19
Tan Republic does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Tan Republic 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.
Tan Republic System Growth
Tan Republic currently operates 65 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 5 | 2 | 67 |
| 2022 | 0 | 1 | 66 |
| 2023 | 5 | 5 | 66 |
Transfers: 7 | Closures: 5
State Registrations
Registered in 9 states: CA, CT, KY, NE, ND, SD, TX, UT, WA
Franchisor Financials (Item 21)
Audited by KEZOS & DUNLAVY Certified Public Accountants & Business Advisors for year ending December 31.
Tan Republic Franchise — FAQ
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