Hollywood Tan - tanTALK

Shnerez420 · 05-19-2005, 08:10 PM

Hey,
Im in the process of opening a salon and hoping to do so over the next 6 months.
In my search for more information I spoke to a guy at Hollywood tans and Im almost convinced to go that route but I think I may have just been sold on it.
Can anyone help me to see the up and down sides of this prospect?
Thanks

BigLeo · 05-19-2005, 09:58 PM

Shnerez420,

I believe Hollywood Tan's concept is large salons with upright tanning booths. Not everybody likes upright tanning booths, so that is something to consider if you go with Hollywood Tan. I've been a proponent of going the Franchise way because they have the "formula" down. They know how to select sites, how to launch a salon, how to advertise and promote your salon, how to run and manage a salon, they can offer better prices on both equipment, lamps and lotions. Whether that is worth the 5% to 7% you have to pay them to use their name and formula is open to question. Talk with the franchisees and find out if the franchisor is living up to its promises. Get the pluses and negatives. A franchise definitely has some advantages over going it alone, which many people have done, but others have failed miserable. This is a seasonal business, there is a lot of competition, and the tanning salon industry has matured. Being part of a franchise makes sense from that vantage point.

Shnerez420 · 05-19-2005, 10:07 PM

The idea of the upright tanning booths in the large salons gives the day-spa kind of feel to it, which is something I would never go for if I open privately. On the other hand, like you said, they have the formula down and it DOES work.
I feel that there are so many salons that come and go but to get the expertise and the formula is worth that 5% or 7%... but theres also a much greater out of pocket expense from the begining.
Which brings me back to the begining, Im looking for some input and opinions from private owners and franchisee's as to how you feel about the decision you made and if you would do it differently given the chance to do it over.
As well, any input at all would be great!
Thanks!!

dbt · 05-19-2005, 10:13 PM

the upside = minimal investment, expertise
the downside = minimal return, royalties

dcjjp2 · 05-20-2005, 02:39 PM

Not sure of the minimal investment thing... i looked at PalmBeach tans website for franchise info and the minimum investment was @300K-700K for buildout and equipment and such... Not too small in my opinion. My salon is far less large but I chose higher quality fixturing and equipment than the sterile pebble coated walls and ergoline beds. Look at the % you need to put in for advertising not only for your select location but also for the franchise as a whole. The number is huge.

BigLeo · 05-27-2005, 09:29 AM

There is a great article about Hollywood Tan in the March 2005 issue of Island Sun Times. I know the Venuto's very well. Ask for Ralph Sr. He's the founder. The rest of you guys better watch out. They have their formula down. That's what I have been preaching. Excellent equipment (vertical's only), at 40% lower prices, their own lotions, salon furnishings. They can get a salon up and running in 30 to 60 days. Their goal of 1000 salons in another five years is realistic. This industry is ripe for consolidation and the ones that will win are the franchisor's. Argue with me.

Leo

Shnerez420 · 05-27-2005, 10:09 AM

Big Leo,
Sounds like you have a Hollywood Tan of your own. What state are you in? HOw long have you been with HT?

dcjjp2 · 05-27-2005, 10:14 AM

Good luck with it... The Hollywood tan that is somewhat close to me is ALWAYS empty.

Shnerez420 · 05-27-2005, 10:16 AM

I found the Island Sun Times online and looked for the article.
Is it in April or May?
Thanks![ This Message was edited by: Shnerez420 on 2005-05-27 10:23 ]

Shnerez420 · 05-27-2005, 10:21 AM

[ This Message was edited by: Shnerez420 on 2005-05-27 10:22 ]

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05-19-2005, 08:10 PM	#1 (permalink)
Shnerez420 Join Date: May 18 2005 Posts: 55 Rep Power: 0	Hey, Im in the process of opening a salon and hoping to do so over the next 6 months. In my search for more information I spoke to a guy at Hollywood tans and Im almost convinced to go that route but I think I may have just been sold on it. Can anyone help me to see the up and down sides of this prospect? Thanks

05-19-2005, 09:58 PM	#2 (permalink)
BigLeo Join Date: Jan 27 2005 Posts: 251 Rep Power: 20	Shnerez420, I believe Hollywood Tan's concept is large salons with upright tanning booths. Not everybody likes upright tanning booths, so that is something to consider if you go with Hollywood Tan. I've been a proponent of going the Franchise way because they have the "formula" down. They know how to select sites, how to launch a salon, how to advertise and promote your salon, how to run and manage a salon, they can offer better prices on both equipment, lamps and lotions. Whether that is worth the 5% to 7% you have to pay them to use their name and formula is open to question. Talk with the franchisees and find out if the franchisor is living up to its promises. Get the pluses and negatives. A franchise definitely has some advantages over going it alone, which many people have done, but others have failed miserable. This is a seasonal business, there is a lot of competition, and the tanning salon industry has matured. Being part of a franchise makes sense from that vantage point.

05-19-2005, 10:07 PM	#3 (permalink)
Shnerez420 Join Date: May 18 2005 Posts: 55 Rep Power: 0	The idea of the upright tanning booths in the large salons gives the day-spa kind of feel to it, which is something I would never go for if I open privately. On the other hand, like you said, they have the formula down and it DOES work. I feel that there are so many salons that come and go but to get the expertise and the formula is worth that 5% or 7%... but theres also a much greater out of pocket expense from the begining. Which brings me back to the begining, Im looking for some input and opinions from private owners and franchisee's as to how you feel about the decision you made and if you would do it differently given the chance to do it over. As well, any input at all would be great! Thanks!!

05-19-2005, 10:13 PM	#4 (permalink)
dbt Join Date: Mar 31 2005 Posts: 6 Rep Power: 0	the upside = minimal investment, expertise the downside = minimal return, royalties

05-20-2005, 02:39 PM	#5 (permalink)
dcjjp2 I love Derf!! Join Date: Jul 12 2004 Location: Va Posts: 3,228 Rep Power: 28	Not sure of the minimal investment thing... i looked at PalmBeach tans website for franchise info and the minimum investment was @300K-700K for buildout and equipment and such... Not too small in my opinion. My salon is far less large but I chose higher quality fixturing and equipment than the sterile pebble coated walls and ergoline beds. Look at the % you need to put in for advertising not only for your select location but also for the franchise as a whole. The number is huge.

05-27-2005, 09:29 AM	#6 (permalink)
BigLeo Join Date: Jan 27 2005 Posts: 251 Rep Power: 20	There is a great article about Hollywood Tan in the March 2005 issue of Island Sun Times. I know the Venuto's very well. Ask for Ralph Sr. He's the founder. The rest of you guys better watch out. They have their formula down. That's what I have been preaching. Excellent equipment (vertical's only), at 40% lower prices, their own lotions, salon furnishings. They can get a salon up and running in 30 to 60 days. Their goal of 1000 salons in another five years is realistic. This industry is ripe for consolidation and the ones that will win are the franchisor's. Argue with me. Leo

05-27-2005, 10:09 AM	#7 (permalink)
Shnerez420 Join Date: May 18 2005 Posts: 55 Rep Power: 0	Big Leo, Sounds like you have a Hollywood Tan of your own. What state are you in? HOw long have you been with HT?

05-27-2005, 10:14 AM	#8 (permalink)
dcjjp2 I love Derf!! Join Date: Jul 12 2004 Location: Va Posts: 3,228 Rep Power: 28	Good luck with it... The Hollywood tan that is somewhat close to me is ALWAYS empty.

05-27-2005, 10:16 AM	#9 (permalink)
Shnerez420 Join Date: May 18 2005 Posts: 55 Rep Power: 0	I found the Island Sun Times online and looked for the article. Is it in April or May? Thanks![ This Message was edited by: Shnerez420 on 2005-05-27 10:23 ]

05-27-2005, 10:21 AM	#10 (permalink)
Shnerez420 Join Date: May 18 2005 Posts: 55 Rep Power: 0	[ This Message was edited by: Shnerez420 on 2005-05-27 10:22 ]

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