Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Planet Beach Contempo Spa Franchise Costs (2013 FDD)

by Franchise Chatter on March 23, 2014

in Franchise Costs, Tanning Franchise



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Detailed Estimates of Planet Beach Contempo Spa Franchise Costs Based on Item 7 (Estimated Initial Investment) of Planet Beach’s 2013 Franchise Disclosure Document

Estimates are based on a single unit Spa. Square footage is approximately 1,400. These spas feature 1 spray tanning unit, automated spa services, and UV services as determined by the franchisor.

1.  Initial Franchise Fee:  $39,950

  • You must pay the franchisor an initial franchise fee of $39,950. In some states, the initial franchise fee will be placed in an escrow account (or deferred) until the Spa opens.

2.  Planet Beach Spa Equipment and Timer System with Shipping, Installation:  $81,700 to $104,229

  • Planet BeachAll Spas are required to have a minimum of 1 approved sunless spray, 1 approved massage unit, 1 approved facial unit, 1 approved body treatment unit, 1 approved weight loss treatment unit, and 1 approved UV therapy unit.
  • The high estimate represents the current 12 unit required Contempo Spa Service Mix. This amount may vary depending on shipping and installation costs.
  • This amount does not include taxes and you must check with your state to determine if there are taxes due.

3.  Leasehold Improvements:  $5,000 to $65,000



  • The high estimate is based on a Spa with an estimated 1,400 square foot space with significant landlord participation (in the form of actual landlord improvements performed or tenant improvement allowance) from a standard retail “vanilla shell.”
  • This estimated range will vary depending on the location, necessary leasehold improvements, and landlord participation.
  • This estimate also includes an allocation for space plans, architectural and engineering drawings.

4.  Owner Furnished Items:  $9,000 to $28,000

  • Owner Furnished Items consist of millwork (including service stand and consultation station), lighting, flooring, interior branding components/signage, exterior signage, and furniture.

5.  Utility, Phone, and Lease Deposits:  $2,500 to $4,500

  • High estimate is based on a security deposit equal to 1 month’s minimum rent at $4,000 per month. Some landlords may require a deposit of first and last month’s rent. Deposits on utilities will also vary. Deposits will vary based on the market rental rates for your market.

6.  Insurance Initial Payment:  $600 to $1,200

  • You will need to obtain Commercial General Liability Insurance ($1 million minimum coverage), Workers’ Compensation, Business Interruption Insurance, Flood, Life Insurance (equal to amount borrowed) and Construction Coverage Insurance.

7.  Computer and Software:  $1,200 to $3,300

  • Low estimate includes hardware and required software. The high estimate includes the cost for 1 CPU, 1 cash drawer, 1 receipt printer, 1 signature pad, and 2 iPads or similar device. This estimate also includes allocation for installation of phone and Internet.

8.  Printing and Marketing:  $10,000 to $20,600

  • You are required to invest this amount in marketing during your pre-sale and through the initial opening of your Spa. You may spend additional amounts with the franchisor’s approval. This estimate also includes an allocation for initial office supplies.

9.  Wholesale Goods:  $6,000 to $7,500

  • You will be required to purchase a specified amount of wholesale goods for the initial inventory of products to be offered for sale based on the size of your Spa. A selection of the franchisor’s proprietary products and national brand products must be stocked.

10.  Washer and Dryer:  $0 to $1,200

  • Zero dollars as a “Low” because not all Spas can accommodate a utility room due to size or layout restriction.  Therefore, the washer and dryer are optional.

11.  Permits, Licenses, and Legal Fees:  $500 to $3,000

  • This figure includes inspection fees, occupational licenses, and legal fees associated with Corporation set-up and lease review.

12.  Additional Funds During Start-up Period and Initial Operations, Including Working Capital:  $8,000 to $46,500

  • The franchisor requires that you must achieve a minimum of $12,500 membership draft before you can open for operation.
  • This figure does not necessarily mean that you will “break even” or that you will reach any certain financial position.
  • The high estimate includes an allocation for payroll during the 120-day pre-sale period. The high estimate also includes expenses associated with attending Franchisee School as well as travel and accommodations for the required on-site training.

13.  Totals:  $164,450 to $324,979



  • The franchisor relied on its experience to compile these estimates. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.


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