TanningGhost

Thanks to you all for your comments. I followed much of your advice above and structured my inquiries accordingly when I met with the rep. I found out that a couple locations in my city have been abandoned and a couple others are up for sale. I recoginize this happens with any franchise, but when taken as a percentage of the total franchises in my city, it didn't sit with me too well. This franchise does have several successful salons in my city, but I didn't leave the meeting with a great feeling of comfort...especially when I advised him that I would begin contacting other franchisees in the city and he proceeded to coach me on how to combat negative comments about the franchise from other franchisees. So, I'm back on the hunt.

Luke Skywalker

Do it yourself. Why pay someone to own your own business? Use that education you are getting and open an independant salon and keep the upfront Franchise cost, (I assume that is much of the 160K) and the monthly franchise fees. The franchisors make the money.

Has anyone seen my light sabre?

Ezliving_Jim

TanningGhost, what is the name of the franchise? Spill the beans.

BigLeo

I think the same thing can be said about independent tanning salons who are experiencing similar problems. Don't believe that just because it is a franchise salon that it is all the fault of the franchisor. I've been in the franchise business myself (not tanning) and there are plenty of horror stories to be found in all sectors. Many times the owner of the franchise is really incompetent or undercapitalized. I've been telling you people for months now that the indoor tanning salon business is very seasonal. From what I've read, people I've spoken with, 2005 turned out to be very slow. A real downer. When are you salon pro's going to understand that there is far too much competition. If you come into this business undercapitalized, lacking management skils or just plain common sense, you are really setting yourself for problems. So let's stop the harranging about franchises. They are not the evil-doers as portrayed by Mr. Underhill. There is plenty of fault on the franchisee side. The owner of this salon even admitted as much. As for the price that should be paid. I think Steve, forgot that there are hard assets to be had. Personally there is no hard rule about this. It is what you think you can get for the assets. $50K sounds like a decent price, but I would look at the salon location. Might be any number of factors that affected sales. Poor management, lack of capital to properly promote the salon. Poorly maintained salon and equipment. Poor service. Bad location. You might want to look at alternative locations with better visibility. This salon might not have good visibility and therefore poor pedestrian and vehicle traffic. It could be poor parking. Lack of complimentary businesses that can drive traffic to the salon. Look at the big picture. There might be better locatons to be had. Investigate them before you go and make a deal with the landlor. Sorry Steve, but just my opinion.