The vendor opportunity at Palm Beach Tan Franchising
Palm Beach Tan Franchising reports an Item 19 figure of $508,618, drawn from a cohort of 213 company-owned prototype locations open the entire 24 months ending December 31, 2022, and a Part II group of 309 franchised locations. The system spans 600 units, 348 of them franchised, with an operator footprint of 28 mapped operators (15 multi-unit) across roughly 160 located units, concentrated in CA, MO, IN, NC, and AR. Franchised outlets grew 7.1% year over year.
Who controls software purchasing
President, CEO and COO Diane Lucas leads the headquarters team, alongside CFO Eric Hall and SVP Business Development R. Daniel Caskey. Franchisees must purchase their computer hardware and license the SunLync Software through the company, which also installs and configures it; the Deskman security-management software carries its own licensing fee.
Tech named in the FDD, and what is actually required
SunLync Software and Deskman security software are required, licensed directly through Palm Beach Tan Franchising, and the computer system must also carry VNC Software and Microsoft Word. For electronic fund transfer services, franchisees must use the company. Medallia is currently the only approved supplier for the required Customer Experience Management program, and franchisees must subscribe to Career Plug's applicant tracking system and join the Digital Support Services program provided by Archer Malmo, Inc. Music comes from uMix and AME, with Southwest Microsystems supplying the hardware. The PBTv Media Player, Remote, and Software must be purchased from the approved supplier, currently Salonsense Media, LLC, with Archer Malmo, Inc. supplying the content.
Procurement, renewals, and timing
Item 8 runs an approved-supplier list: franchisees must meet company standards and specifications for supplies, materials, fixtures, and equipment, buying from approved suppliers where the company designates one. The royalty steps from 4% of Gross Sales in the first 12 months to 5% in months 13 to 24 and 6% thereafter, on a 10-year initial term, with renewal requiring the location upgraded to current standards and a then-current Franchise Agreement signed.
How to read the Palm Beach Tan Franchising FDD
The embedded viewer below carries Palm Beach Tan Franchising's 2023 Franchise Disclosure Document, including the Item 8 and Item 11 language summarized above.
Talk to FranCloud for a ranked list of franchise systems like Palm Beach Tan Franchising where the technology mandate and procurement structure line up with your product.