Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
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FDD Talk: Average Revenues and Other Operating Data for Franchised Palm Beach Tan Locations (2013 FDD)

by Franchise Chatter on April 16, 2014

in Franchise Earnings, Tanning Franchise



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Highlights of Palm Beach Tan’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

Explanatory Notes for Part II – Analysis of the Actual Operating Gross Revenues of Franchised Palm Beach Tan Locations

  • Part II of this analysis contains information regarding average sales, average Gross Sales per tanning session, average retail sales per tanning session, and average number of tanning sessions per month for the 94 franchised Palm Beach Tan locations which were in operation during the entire 24-month period ended December 31, 2012, with an overall average of 5.41 years of operation (“Franchised Locations”).
  • Palm Beach TanTable 1 presents the arithmetic mean average of EFT Revenues, Other Revenues, and Total Revenues. Table 2 presents the arithmetic mean average of average Gross Sales per tanning session, average retail sales per tanning session, and average number of tanning sessions per month for the Franchised Locations.

Explanatory Notes for Table 1 – Average Operating Data for the 94 Franchised Locations as of December 31, 2012

  • Average revenues are a mean average calculated by aggregating the total revenues of all Franchised Locations and dividing by 94. Revenues include EFT monthly proceeds, other tanning services, and lotions and other product sales.
  • EFT monthly proceeds:  Approximately 58.2% of the total sales revenues for the Franchised Locations are represented by monthly electronic funds transfer (“EFT membership”) for members’ bank or credit card accounts. EFT memberships enable a Location to experience better collections than it would without EFT memberships. It may take approximately 3 to 4 years for a location to achieve the percentage of revenues noted above from EFT memberships. Locations without a comparable percentage of EFT memberships may experience different collection rates.
  • Other tanning services:  These services include all tanning sales and services (including sunless tan sales) other than from EFT proceeds.

Explanatory Notes for Table 2 – Average Gross Sales Per Tanning Session, Average Retail Sales Per Tanning Session, and Number of Tanning Sessions Per Month for the 94 Franchised Locations for the Period January 1, 2012 to December 31, 2012

  • Gross Sales represents all in-Location revenue from the sale of tanning services, lotions, and other products. The highest average Gross Sales per tanning session of any of the Franchised Locations was $8.56 and the lowest was $4.12.
  • Retail sales represents all in-Location revenue from the sale of lotions and retail products. The highest average retail sales per tanning session of any of the Franchised Locations was $5.10 and the lowest was $1.59.
  • The highest number of tanning sessions per month of any of the Franchised Locations was 6,622 and the lowest was 1,153.

Table 1 – Average Operating Data for the 94 Franchised Locations as of December 31, 2012

Average Unit Information for the 12 Months Ended December 31, 2012



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