HOLLYWOOD TANS FRANCHISE COMPLAINTS

[unity]

Ah - NewOwner has a new Avatar - explains a lot.

[NewOwner]

Ah - NewOwner has a new Avatar - explains a lot

It does. I went 6 months without even visiting this site because of people like you and whoever the mod is that changed my avatar. Then Belvy said "you should come back to tantalk. Alot of the trouble makers are gone. It's really a great site." Well, my experience says otherwise.

I simply praised Ann and then had to defend that praise. Why? Why should I have to do that? Eileen agreed Ann was helpful. Why not just leave it at that?

Now you clowns change my avatar and question my posts. I post comments sometimes. I post advice other times. Fact is, there is rarely a post worth responding to in here. I think I'll wait another 6 months before I come back and I know I know that is ok with you too so save your breath.

[unity]

I apologize. But the avatar chosen, and your title, is that of a once banned user. While I never dealt with that person directly, I have read a GREAT many posts and they were pretty much pointless ramblings. So if you are not that person, I apologize but you do need to concentrate on the thread. This has gotten a little crazy. If you are indeed him, well thats up to the mods, but it looks like your not, so again I apologize!

[rosefarm]

Hollywood Tans Is Scamming Salon owners!!!!!!!!!!!

Up date
West Hartford Ct was closed On Feb 16,2008
That makes 4 closed Salons in 8 Months in Ct.
There are only 10 left and 6 more in trouble!
Here is how this Company decided to help salon owners....
Here is the actual letter from Corporate that will prove alligations from the salon owners that they are all hurting...



-----Original Message-----
From: Hollywood Tans <hollywoodtans@hollywoodtans.com>
To: Hollywoodtans Marketing <hollywoodtans@hollywoodtans.com>
Sent: Fri, 29 Feb 2008 2:02 pm
Subject: Letter from J.J. Sorrenti

February 29, 2008

Dear Hollywood Tans Franchisee:

We are fast-approaching our most productive season and we’re putting the final touches on new marketing materials (including new television commercials, print ads, in-store graphics, and more) that we believe will help drive new customers into the salons. All of us are truly excited by what we’ve seen, and we’re sure when you see the information at the upcoming market materials, that you will too.

Unfortunately, because of the staggering size of accounts receivable from franchisees (including royalties, marketing invoices, rents, and equipment payments), we’re not in a position to leverage the new marketing materials. The fact is that certain franchisees owe us nearly $10 million, most of which is past due! And, without that cash in hand, we will not be in a position to market at the level we believe is necessary for a successful—and we think potentially very successful—spring and summer busy season. That will hurt all of us.

The current accounts receivable situation from our franchisees is simply unacceptable, and we are taking action immediately so that we will have the necessary cash to take advantage of our season. Hollywood Tans (and our franchisees who are meeting their obligations with the company) should not and will not allow some franchisees to freeload on our marketing investments. Rest assured, our company is not in any kind of financial jeopardy. Rather, we are fed-up with franchisees who are not paying their obligations to us.

Consequently, please be advised that franchisees that owe past-due amounts to the company must pay the amounts owed to us immediately. We understand that you may not have the cash to do so. If your account is delinquent and you don’t have the cash to pay us immediately, you have one of several options:
1. You may need to meet with your banker to get a short-term loan;
2. You may need to use personal or corporate credit cards to pay your balance due;
3. You may need to contact the third-party lender whose contact information is included with this letter, who may be able to help you with an alternate source of immediate cash; or
4. You may need to use other sources of cash (assets that can be sold or others who may be willing to provide loans or cash).
If your account is past due and we do not receive immediate payment, we will begin to take action. These actions will include:

1. Effective March 1, 2008, franchisees with past due accounts will no longer be able to take advantage of the promotions we offer in our wholesale business (such as $1 off each bottle of lotion purchased, etc.). Franchisees with past due balances will pay full wholesale price for any items purchased;
2. Report your past due amount to the credit bureaus;
3. Turn your account over to a collection agency;
4. Terminate your franchise agreement.
We will take these actions with regret, but also with the confidence that successful franchise systems simply do not permit their accounts receivable to increase in the way that we have.

Finally, as a gesture of goodwill, as a one-time offer, every franchisee whose November, December and January marketing invoices are paid in full by March 7, 2008 (including those whose marketing invoices have already been paid), will receive a $500 credit on his or her your account to be used toward future advertising invoices. Please note that we have no obligation to provide this credit, since the amounts that were billed to you were already spent on marketing.

For those of you with past due accounts, this is a very serious matter. If you have past due amounts, you should consider this as your final warning. If we do not receive payment of your past due amounts, you are putting your credit record and, most importantly, your franchise business at risk.

Sincerely,
J.J. Sorrenti
CEO
Hollywood Tans, LLC
11 Enterprise Court
Sewell, NJ 08080
856.716.2150 T
856.716.2151 F
www.hollywoodtans.com

Also a Salon owner wrote to me today here.............


There whole advertising that we pay for is based on funding their future growth... They admitted to doing a national radio buy for december, which our advertising money is suppose to be used on regional ads. So why was I billed $3500 in nj and people in California billed the same thing... Also why do we have to pay for radio ads that aired in texas, which has one salon but they want to expand in?

On page 21 on my franchise agreement it states that the national advertising program is 1% of gross sales... Well I didn't' make $350k in 2007 did any of you? And I don't feel I should have to pay for their expansion when our UFOC states the program is for regional co-op funds... to be split among those stores in that region... Since when is CT and NJ in the same region, and if we are how the heck does California be a part of that.

Also on page 22 in my book it states we could request an annual accounting of the co-op advertising program. In addition, my UFOC states they don't make money on the advertising program so why is Jennifer heading up a new ad agency ion the company and they also need mullen to advertise... second paragraph... http://www.lookingfit.com/hotnews/81h2492944.html

A group of people in NJ are getting together and going to be fighting this issue.... Since we strongly feel they are using this program to recapture CHEAP stores for a quick profit on the flip.

JJ had the never to ask me what I'm doing on the local level... For paying $15k to $20k a year on advertising I shouldn't have to do a **** thing.... Heck, I could pay people $5 bucks to tan, and still get more people in my store for less..

March 13th newark nj corporate road show with q&A should be a lot of angry franchise's there....


Will be more updates soon!
Charlie

	First Merchant Funding

	Superior UV

	Our Fat Cat

[PatParadise]

I would recommend salon owners refer to my previous discussions on this thread as I would like to help. What exactly does HT provide regarding projected cash flows, tanning numbers and their advertising programs. I have spent my working life negotiating construction contracts and can assure that having the best facts and information is the best defense. Our salon is located in an area with house hold incomes ranging from $80,000 - $150,000. Today a new customer drove up in a $60,000 Hummer and purchased $30.00 month unlimited in our base beds.

One of our clients is a medical doctor and his wife, a specialists who earns 200K plus and yes they purchased $30.00 month unlimited in the base beds. We would love to raise our prices but there are too many salons that have now changed to match our prices even though they are not making squat. Stand-up beds are just not that popular. Just IM if you have a chance, good luck, PatParadise, (IMWW)

[rosefarm]

Hello Pat,
Thank you so much for you invariable positive support and the integrity and understanding to help us with this regrettable situation.
We have utilized this site in attempt to help future salon owners to "beware" of "Franchise" companies, the regulations, their counterfeit support, the exaggerated expenses and self-interest.
We have received much desirable support and information from most of the Tan Talk members and we appreciate all the have stepped forward to give their advise! We are so much closer to a resolve and have rapidly grown in numbers with a huge support team! We will continue to fight “Goliath” and take it as far as we must. We will continue to update the members of this site of all positive and negative accomplishments!
Charlie

[PatParadise]

It is nice to hear the positive feedback. I know that truth shouts volumes over untruth. I would think that Salon Franchise would not want expose information in the courtroom for all the public to hear. I believe that a fair deal is that after four or five years you would only have to pay a fee ranging from 2% - 4% of sales. Plus I believe you should able to purchase supplies lotions, lamps etc from any source you choose, PatParadise, (IMWW)

	Superior UV