Opening a Palm Beach Tan franchise puts you at the helm of the largest indoor tanning chain in the United States. With 650-plus locations across 34 states, a proven membership-based revenue model, and a brand that has dominated the tanning industry since 1990, Palm Beach Tan represents a compelling opportunity for entrepreneurs looking to enter the health and wellness franchise space. But like any brick-and-mortar franchise, turning that opportunity into reality starts with securing the right financing. Total startup costs range from $648,000 to over $1.1 million, which means most prospective franchisees need a strategic lending plan to bridge the gap between their available capital and their investment goal.
This guide walks you through everything you need to know about Palm Beach Tan franchise costs, loan options, lender requirements, and how Crestmont Capital helps franchise buyers get funded quickly and confidently.
Palm Beach Tan was founded in 1990 by entrepreneur Parrish Medley in the Dallas, Texas area. What started as a single tanning salon grew into a national brand that now holds the title of the largest indoor tanning franchise in the country. Headquartered in Irving, Texas, the company began offering franchise opportunities in 1998, with formal franchise disclosure registration completed in 2001.
The brand operates across 34 states with more than 650 company-owned and franchised locations. In 2023, Palm Beach Tan further expanded by acquiring At The Beach, another major tanning chain, solidifying its lead in a market that continues to evolve well beyond basic UV tanning.
Today, Palm Beach Tan salons offer:
The membership model is one of the brand's strongest financial features. Monthly memberships create consistent cash flow, reduce revenue volatility, and build customer loyalty, all of which make the business model attractive to investors and lenders alike.
According to the 2025 Franchise Disclosure Document (FDD), the total initial investment to open a Palm Beach Tan franchise ranges from $648,000 to $1,131,000. This range reflects differences in market size, real estate conditions, salon format, and whether you are building out a new space versus inheriting an existing one.
Here is a detailed breakdown of the primary cost categories:
| Cost Category | Low Estimate | High Estimate |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Leasehold Improvements | $250,000 | $400,000 |
| Tanning and Related Equipment | $179,650 | $438,550 |
| Furniture and Fixtures | $52,500 | $76,500 |
| Initial Inventory | $16,495 | $18,967 |
| Signage | $6,700 | $15,800 |
| Computer Hardware and Software | $6,378 | $9,681 |
| Professional Services | $15,000 | $20,000 |
| Grand Opening Marketing | $10,000 | $10,000 |
| Prepaid Rent and Security Deposit | $5,120 | $17,500 |
| Utility Deposits and Permits | $60 | $5,200 |
| Additional Funds (3 months) | Varies | Varies |
| Total Estimated Investment | $648,000 | $1,131,000 |
Beyond startup costs, franchisees pay ongoing fees throughout the life of their agreement:
Crestmont Capital specializes in franchise loans for wellness and personal care businesses. Get a decision in as little as 24 hours.
Apply Now - Free, No ObligationWith startup costs that can easily exceed $800,000, most Palm Beach Tan franchisees use a combination of personal equity and outside financing. The most common financing structures include:
The SBA 7(a) loan program is the most popular route for franchise financing. It offers loan amounts up to $5 million, repayment terms up to 25 years for real estate and 10 years for working capital, and interest rates that are typically lower than conventional business loans. The SBA does not lend money directly; instead, it guarantees a portion of the loan made by an approved lender, reducing risk for the bank and improving your approval odds.
Our guide to SBA loans covers eligibility, documentation requirements, and timelines in detail. For Palm Beach Tan franchisees, the 7(a) program is especially valuable because it can cover leasehold improvements, equipment, working capital, and even the franchise fee in a single loan package.
If you are purchasing real estate for your tanning salon rather than leasing, the SBA 504 loan may be a better fit. It pairs a bank loan (50%) with a Certified Development Company loan (40%) backed by the SBA, requiring only 10% down from the borrower. Terms extend up to 25 years on real estate portions at fixed rates.
Tanning beds, spray booth systems, and red light therapy units are expensive, but they are also excellent collateral. Equipment financing lets you purchase or lease these assets while preserving your working capital. Loans are secured by the equipment itself, which often results in lower rates and faster approvals compared to unsecured business loans. Terms typically range from 3 to 7 years.
A business line of credit gives you flexible access to capital for day-to-day cash flow needs, seasonal fluctuations in membership revenue, or unexpected expenses. Unlike a term loan, you only pay interest on what you draw, making it a cost-effective safety net during the first year of operations when membership rolls are still building.
Small business loans from alternative lenders often move faster than bank or SBA loans and carry more flexible eligibility criteria. If your credit profile is not yet spotless or you need capital quickly, these can bridge the gap while you build your financial track record.
Crestmont Capital is a direct lender and lending marketplace rated among the best business lenders in the country. We specialize in helping franchise buyers structure the right financing package from day one, not just securing a loan, but securing the right loan for your specific situation.
Here is what sets us apart for Palm Beach Tan franchisees:
We have helped franchise owners across the wellness and personal care sectors, including tanning salon operators, fitness studios, and beauty service brands, access capital at competitive terms. For franchise brands similar to Palm Beach Tan, check out our resources on financing for Wingstop franchise loans and Domino's franchise loans to see how the process works across different franchise categories.
Choosing the right loan structure for your Palm Beach Tan investment depends on your equity position, credit profile, timeline, and how you plan to use the funds. Here is a comprehensive look at the most relevant loan types:
Loan amount: Up to $5 million. Terms: Up to 10 years (working capital) or 25 years (real estate). Interest rates: Prime + 2.75% to Prime + 4.75%, depending on loan size. The SBA 7(a) is the gold standard for franchise financing because it bundles construction, equipment, franchise fees, and working capital into a single loan with a below-market interest rate and long repayment terms that keep monthly payments manageable during the ramp-up phase.
According to the SBA's official lending programs page, franchise businesses that appear on the SBA Franchise Registry benefit from streamlined approval processes, and Palm Beach Tan is a recognized franchise brand.
With tanning bed packages ranging from $179,650 to $438,550, equipment financing is an effective way to cover one of your largest single cost buckets. The equipment serves as its own collateral, so approvals tend to be faster and credit requirements less stringent than for unsecured loans. Terms of 36 to 84 months are typical, and many lenders offer 100% financing with no down payment required.
Buildout costs of $250,000 to $400,000 are among the most substantial investments you will make. Some lenders offer dedicated construction-to-perm loans that convert to a standard term loan once buildout is complete. Others bundle this into an SBA 7(a) package. Either way, financing the buildout rather than paying it from pocket preserves liquidity for operations.
Several lenders, including those in the Crestmont Capital network, offer franchise-specific loan products that recognize the Palm Beach Tan brand and its proven operating history. These products often come with pre-underwritten terms that speed approval and may require less documentation than a standard business loan application.
If you have a substantial 401(k) or IRA, a ROBS structure allows you to invest retirement funds into your franchise without early withdrawal penalties or taxes. This is not a loan, so there is no debt service, but it does carry compliance obligations and requires a C-corporation structure. Many franchisees use ROBS as part of a hybrid equity-plus-loan strategy.
Our team will match you with the right lender and structure based on your credit, equity, and timeline. No cost, no commitment.
Get My Loan OptionsLenders evaluate Palm Beach Tan franchise loan applications using a combination of personal financial factors and business metrics. Here is what they are looking for:
Most SBA lenders want to see a personal credit score of 680 or higher. Some alternative lenders will work with scores as low as 600, especially if your overall financial profile is strong. A few derogatory marks will not automatically disqualify you, but major red flags like recent bankruptcies or unpaid tax liens will need to be addressed. If your credit needs work, review our guide to bad credit business loans for strategies.
SBA loans typically require 10% to 30% of the total project cost as a down payment. For a $900,000 Palm Beach Tan buildout, that means you need $90,000 to $270,000 in liquid capital ready to go in. Some lenders also count equity in other real estate or assets toward this requirement.
Palm Beach Tan's own franchise requirements set the bar at $500,000 net worth and $250,000 liquid assets. Lenders will independently verify these figures through personal financial statements, tax returns, and bank statements. Having more than the minimum improves both your approval odds and the terms you receive.
First-time franchisees will need a solid business plan that includes a site analysis, market competition overview, membership revenue projections, and breakeven timeline. Lenders use this to assess repayment ability. The Palm Beach Tan franchisor provides financial performance representations in Item 19 of their FDD that you can use as a baseline for projections.
You do not need tanning salon experience to qualify for a loan, but prior experience in retail management, fitness, beauty services, or any membership-based business will strengthen your application. Multi-unit franchise operators with track records in other brands may qualify for larger loan amounts and better terms.
For SBA loans, lenders are required to take available collateral, including business assets (equipment, fixtures) and, if available, personal real estate. The tanning equipment and buildout assets serve as primary business collateral. Strong personal collateral can help offset a thinner credit file.
To make these concepts concrete, here are four hypothetical franchisee scenarios illustrating how different buyers might structure their Palm Beach Tan financing:
Profile: Maria, 38, a former salon manager with $280,000 in savings and a 710 credit score. She wants to open one Palm Beach Tan location in a mid-size suburban market.
Total project cost: $780,000
Financing structure: $200,000 personal equity injection + $580,000 SBA 7(a) loan at 10-year term
Monthly debt service: Approximately $7,600
Key advantage: Long loan term keeps monthly payments manageable during the 12 to 18 month membership ramp-up period. Maria's salon management background strengthens her application considerably.
Profile: David, 45, a current operator of two franchise locations (different brand). He wants to add two Palm Beach Tan units in adjacent markets. Net worth: $1.2 million. Credit score: 740.
Total project cost: $1,700,000 for two locations
Financing structure: $340,000 equity + $750,000 SBA 7(a) for location 1 + $610,000 equipment financing and line of credit package for location 2
Key advantage: David's franchise operating track record allows him to negotiate better terms and demonstrate repayment ability based on existing cash flows from his current locations.
Profile: Jennifer, 52, a corporate executive transitioning to entrepreneurship with $450,000 in a 401(k) and a 695 credit score. She has no franchise experience but strong management credentials.
Total project cost: $860,000
Financing structure: $200,000 ROBS (retirement funds) + $660,000 SBA 7(a) loan
Key advantage: ROBS provides equity without depleting savings, and the combined equity position of 23% exceeds SBA minimum injection requirements, improving approval odds despite the modest credit score.
Profile: Marcus, 41, a real estate investor with significant property equity but limited liquid cash. Credit score: 725. He wants to open a Palm Beach Tan but only has $100,000 liquid.
Total project cost: $720,000
Financing structure: $100,000 cash + $180,000 home equity line of credit + $440,000 SBA 7(a) loan
Key advantage: Marcus leverages existing real estate equity to supplement his liquid position, satisfying the down payment requirement without liquidating investments. His total collateral pool (real estate plus business assets) strengthens the application.
The application process for franchise financing does not have to be complicated. Here is how it typically flows when you work with Crestmont Capital:
Timeline from application to funding varies by loan type. Equipment financing can close in as little as 5 to 10 business days. SBA loans typically take 45 to 90 days from application to funding. Starting early, ideally before you sign your franchise agreement, is strongly advisable.
The total initial investment ranges from $648,000 to $1,131,000 according to the 2025 FDD. This includes the $30,000 franchise fee, leasehold improvements of $250,000 to $400,000, tanning equipment ranging from $179,650 to $438,550, furniture and fixtures, inventory, signage, technology, and working capital reserves.
Can I get an SBA loan to finance a Palm Beach Tan franchise?Yes. SBA 7(a) loans are one of the most popular options for Palm Beach Tan franchise financing. You can borrow up to $5 million with repayment terms up to 10 years for working capital or 25 years for real estate. SBA loans offer below-market interest rates and are ideal for covering construction, equipment, franchise fees, and operating capital in a single loan.
What credit score do I need to get a Palm Beach Tan franchise loan?Most SBA lenders prefer a personal credit score of 680 or higher. Alternative lenders may work with scores starting around 600 if the overall financial profile is strong. Your debt-to-income ratio, net worth, liquid assets, and business experience all factor into the credit decision alongside your raw score.
How much money do I need to put down?SBA loans typically require a 10% to 30% equity injection (down payment). For a $900,000 project, that translates to $90,000 to $270,000. Palm Beach Tan's own franchise qualification requirement is $250,000 in liquid assets, so the two figures are aligned for most applicants at the lower end of the total investment range.
What is the Palm Beach Tan franchise royalty fee?The royalty fee starts at 4% of gross revenues in Year 1, increases to 5% in Year 2, and reaches its ongoing rate of 6% from Year 3 forward. In addition, franchisees pay 3.5% for local marketing and 2% to the national advertising fund, bringing total marketing obligations to 5.5% of gross revenue.
Does Palm Beach Tan offer financing assistance to franchisees?Palm Beach Tan does not directly finance franchisees, but the company does work with preferred lending partners and can point franchisees toward SBA-approved lenders familiar with the brand. Working with an independent lending marketplace like Crestmont Capital allows you to compare multiple lenders side by side rather than being limited to a single referral.
How long does it take to get a franchise loan approved?Timelines vary by loan type. Equipment financing can close in 5 to 10 business days. Business lines of credit typically take 1 to 3 weeks. SBA 7(a) loans generally take 45 to 90 days from application to funding. Starting the loan process before you sign your franchise agreement is strongly recommended.
Can I use retirement funds to open a Palm Beach Tan franchise?Yes. A ROBS (Rollover for Business Startups) structure allows you to use 401(k) or IRA funds to invest in your franchise without incurring early withdrawal penalties or income taxes. Many franchisees use ROBS as part of a hybrid equity-plus-loan strategy. ROBS requires a C-corporation structure and ongoing compliance work, so you should work with a specialist.
What financial requirements does Palm Beach Tan have for franchisees?The brand requires a minimum net worth of $500,000 and at least $250,000 in liquid assets. These figures are minimum thresholds. Franchisees who exceed them will generally have a stronger franchise application as well as more favorable loan terms from lenders.
Is Palm Beach Tan a profitable franchise?Profitability varies by location, market, and operator. The membership-based revenue model provides a strong recurring income base that many salon operators find attractive compared to pure transaction-based businesses. Reviewing the Item 19 financial performance representations in Palm Beach Tan's FDD provides the most reliable picture of average unit volumes and earnings.
Can I finance a Palm Beach Tan franchise with bad credit?It is more challenging, but not impossible. Alternative lenders and some SBA microloan programs work with lower credit scores. You may need to offer additional collateral, accept a higher interest rate, or bring in a creditworthy co-borrower. Reviewing your options through our bad credit business loan resources is a good starting point.
What equipment does a Palm Beach Tan franchise need?Equipment needs include multiple levels of tanning beds (Level 1 through 5 sunbeds), sunless spray booths, red light therapy panels (at many locations), point-of-sale systems, salon management software, furniture, fixtures, and signage. Equipment packages range from $179,650 to $438,550 depending on the number of rooms and equipment levels installed.
How many Palm Beach Tan locations are there?Palm Beach Tan operates more than 650 locations across 34 states in the United States. The brand expanded significantly in 2023 with its acquisition of At The Beach, another major tanning chain, adding to its position as the largest indoor tanning franchise in the country.
How long is the Palm Beach Tan franchise agreement?The standard franchise agreement term is 10 years. Most agreements include renewal options that allow franchisees to extend the relationship at the end of the initial term, subject to meeting brand standards and paying a renewal fee.
What is the best way to finance tanning equipment for my franchise?Equipment financing is often the most efficient way to cover tanning beds and spray booth systems. The equipment itself serves as collateral, which typically means faster approvals and less documentation than traditional business loans. Equipment financing terms usually run 3 to 7 years, and many lenders offer 100% financing with no down payment required on the equipment portion.
Join thousands of franchise owners who have trusted Crestmont Capital for fast, flexible financing. Our application takes less than 5 minutes.
Apply NowPalm Beach Tan represents one of the most established franchise opportunities in the tanning and wellness sector. With 35-plus years of brand history, a proven membership revenue model, and over 650 locations across the country, the brand has demonstrated staying power in a competitive market. The total investment of $648,000 to $1.1 million is substantial, but it is also financeable, with multiple loan pathways available to qualified buyers.
The key to successful franchise financing is starting early, understanding your options, and working with a lending partner that specializes in franchise transactions. SBA loans, equipment financing, and business lines of credit each play distinct roles in a well-structured Palm Beach Tan financing plan. Whether you are a first-time franchisee or an experienced multi-unit operator, Crestmont Capital has the network and expertise to match you with the right capital at competitive terms.
If you are ready to take the next step, apply today and let our team build a financing plan tailored to your Palm Beach Tan opportunity.
About Crestmont Capital: Crestmont Capital is a leading U.S. business lender specializing in franchise financing, equipment loans, SBA loans, and business lines of credit. We help entrepreneurs across the country access the capital they need to launch, grow, and expand their businesses. Learn more about our small business loans and SBA loan programs.