rosefarm

HOLLYWOOD TANS IS A FRANCHISE RIPP OFF!
Please respond and let us know if there are more Hollywood Tans salon owners and existing franchises complaints!
I have 7 franchise store owners who have purchased Hollywood Tan Franchise System and have been lied to and scammed! We have merging to prepare and file a suit against this company and new owners! I am on a mission to expose the falsehearted actions of this company! I will be adding other franchises to this list as there are more salon owners beginning to seek help with their financial sate of affairs and join us with the preparation a corporate suit as they learn about their fellow franchises owners beginning this complaint! This companies dishonesty regarding projected cash flow, false stated profits and the deceitful business opportunity statements have financially hurt many franchise owners. They have taken my money (Franchise Fee of $34,500.00). April of 2006 and tell me that they will refund the fee and have not yet to this date. They instructed me to lie to the SBA via e-mail about cash projections in reference to my sales projected figures in order for me to secure the loan. That is when I decided that I wanted my franchise fee returned and they keep telling me that they now have to re-sell the territory! I have e-mail proof of the chief financial officer telling me to up the sales figures so I would obtain the SBA loan. The additional franchises and HT salon owners that I have been getting statements from have verified this information and other horror stories about HT not listening to salon owners problems and not caring for from them as well. Some have already gone out of business and lost a fortune! I have kept all e-mail information as proof and have several witnesses that will verify all I have said.
I have contacted the owners, and managers of the Hollywood Tan corporate headquarters and they will not answer my letters phone calls or my e-mail!

Recent Update!
I THOUGHT THAT I WOULD POST DETAILS TO ANSWER SOME QUESTIONS AND CONCERNS AS WELL!
I have been extremely frustrated with the HT lack of communication. I do believe that HT has not considered nor taken any time to at least listen to all the facts here! I also trust that they do not take the time to support their present salon owners. My contentions can be confirmed by several present and past HT salon owners. HT seems to be more interested in building their franchise store base then in helping those that represent their company.
HT did in fact make representations about profits and cash flow before we signed our franchise agreements. I was told to send a franchise deposit fee as soon as possible because there were other customers very interested in my area! So we sent them their $34,500.00 franchise fee. I was told not to worry about SBA funding because HT had a company that was familiar with their company. I was told not to worry about the franchise fee it would be returned if we didn’t secure funds from SBA.I then began my cash flow projections. I went to other salon owner and acquired their present and past sales figures, overhead. I utilized the actual figures with a 10% increase in sales every year. They were horrible not profitable! I sent the sales figures via email to the CFO before I sent them to SBA. The CFO emailed me and calculatingly said to UP the sales figures because SBA would not fund me with this projection! Yes! I did believe that this would be lying to SBA and dishonest! And imprudent on my part to buy into a non profitable business! At that time I realized that HT would not be a company that I could work with. I had a partner who then backed out of the partnership, and I asked for my franchise fee back. The franchise operations manager said not to worry HT has never been know to keep a franchise fee. I was never told that they would have to re-sell the territory before they would consider giving my hard earned money back minus their numerous fees! I have been waiting ever since. Going on two years! I do remember signing a statement that the franchise fee was non-refundable but only if funds were not secured for outside sources. I was told not to worry about signing that. I have the email proof.
HT never secured a lease nor spent any money for my North Haven Ct location!
Has anything changed since the new owners have taken over? NO! I have made many attempts to speak with the new management and new owners but I never received any communication. I did recently receive a cold certified letter reiterating the old companies stand.
Hopefully this details my situation, but not the existing HT salon owner’s state of affairs! I will continue to contest for them as well as myself.
Oh by the way, I understand that HT closed on another CT. salon, yesterday. Branford Ct is CLOSED down! He opened the salon not even one year ago! He also lost his initial investment over $250,000.00!
I will continue to update!

unity

Wow... but I have to say that one never enters a business without knowing what they are doing and reading eh small print. I am sure they are legally protected from any suit you may bring.

Good luck and keep us informed!

rosefarm

Thank you for the reply Unity! I will keep all informed of future progress and set backs! Hopefully we can get some HT salon owners to discuss thier sitiuation on this forum!

unity

If anything I would take the mis-representation approach. But I am not a lawyer and will not pretend to be one. Just sorry your getting burned.

BigTans

Quite frankly...if you were threatening to file suit with me I probably would not answer your calls either. Did you have business experience before you entered into this agreement? If your salon would have done well would you be complaining about the false projections given to the SBA. I do not agree with this practice but just wondering if the outcome was different would you be so angry... There are many HT owners that do extremely well and just like any franchise in any industry some don't do well at all and have to close shop. I'm sure everything that you are complaining about was in print somewhere in your agreement. Sometimes you just have to look in the mirror. Good luck with your suit...you are picking a fight with an 800lb gorilla.

eileen

Big Tans maybe I read it wrong but I took it that rosefarm decided against the franchise before opening... didn't like them telling them to change the numbers. :)

__________________
"under exposure to UV rays is as dangerous as overexposure....this is D life" eileen

rosefarm

And Quite Frankly "MR BIG TANS" I find your comments extremely comical! You are asking me if I have ever been in business. Well, YES! 32 successful years. Retired and was looking to invest into a quality franchise! You do not agree with "Due Diligence? Nor fudging numbers for a government agency and you are afraid of Gorillas for some reason. Sorry MR. BIG TAN or whatever! You want to put your money where you mouth is? You can have HT CT location for half price of I also have several other HT salons (NOT PROFITABLE by the way) for a good price! I am simply posting facts. You are posting assumptions! I am hoping to help other potential franchise customers to simply know the facts!

megatanman

Thats part of the business.Research is number one in my book.No different than calling a supply company and telling them you are interested in opening a salon.Then asking them what the best location is and how much equipment you need.

There not in business to cater to the franchisee.Their in business to make money be it honest or dishonest.

sunsally

I'd be very careful about what you post in an open forum like this and the exact language you use. Not just the original poster, but any participants in a thread.

There is another very popular tanning chat site where the site owner was sued - and lost - by a major tanning franchise based on things written on his site........

Just a heads up, for those that may not remember that history and story.

rosefarm

Thank you for the heads up SunSally! I am only reporting facts. The truth! I really dont believe a company can bring about a suit for simply sating the truth! I really appreciate your concern and imput as well!