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Planet Beach Spa Franchise Cost & Fees

Date of Incorporation: 1995

Franchising Since: 1996

Headquarters: Marrero, Louisiana

 

Business Description: The franchisor is Planet Beach Franchising Corporation (PBFC). Planet Beach locations offer, automated spa services, nutrition, health products, spray tanning, ultra violet light tanning and other skin care products. However, services may vary per location.

 

Franchise Offer: Franchisees operate a Planet Beach Contempo Spa that offers automated spa services, sunless and UV tanning. Franchisees will also sell related skin care products and other specialty items under the name and brand “Planet Beach.”

 

Financial Assistance: Neither PBFC nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees. However, PBFC currently has a working relationship with seven lending institutions.

 

Training and Assistance: The franchisee (and directors) will be provided with classroom training through Franchisee and Spa Director School for each location opened. Franchisees are responsible for all travel, living and any other expenses for all attendees they employ. Training occurs at Planet Beach headquarters in Marrero, Louisiana, or other location designated by PBFC. For the franchisee’s first Spa, PBFC or its Area Representative will provide a Grand Opening Specialist (GOS). The GOS will consult and provide sales and marketing techniques through the first month the Spa is open at the franchisee’s expense. PBFC will hold annual conferences for franchisees’ benefit. These conferences are mandatory and they are held in New Orleans, Louisiana or at a location designated by PBFC.

 

Territory: The franchisee will operate the Spa from a location approved by PBFC. During the term of the Franchise Agreement, if the franchisee is in compliance with the Franchise Agreement, PBFC will neither establish nor operate nor license another to establish or operate a Spa location using the Proprietary Marks and System within the territory identified. The Territory will generally be a circle, the center of which will be the franchisee’s location as defined by the franchisee’s signed lease and verified by the franchisee. The actual size and dimensions of the Territory will depend upon the specific variables of the franchisee’s site including population density, marketing and development trends, traffic flow and natural and man-made boundaries. The franchisee may not solicit customers and/or market outside the Territory, except to the extent that the franchisee has received prior written authorization.

 

Term of Agreement and Renewal: The length of the initial franchise agreement is 20 years. Perpetual renewal terms of five years each are available, if the franchisee is in good standing.

 

Obligations and Restrictions: PBFC requires and recommends that the franchisee personally supervise and attend to the daily operation of the Spa. If the franchisee chooses to operate the Spa through a full-time Spa Director, which the franchisee designates to manage the location, the manager must work at least 40 hours per week and must personally supervise the day-to-day operations of the Spa in the franchisee’s absence. PBFC requires the franchisee to offer and sell only those goods or services that PBFC has approved. The franchisee must keep the Spa open and in normal operation for the minimum hours and days that specified or as required by the lease, must refrain from using or permitting the use of the location for any other purpose or activity at any time without first obtaining written consent and must operate the Spa in strict conformity with the methods, standards and specifications required in the Operations Manual or otherwise in writing. The Spa also must be operated in strict conformity with all applicable federal, state and local laws, ordinances and regulations.

 

Estimated Total Number of Units: 300

 

Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $39,950
Planet Beach Spa Equipment and Timer System with shipping, installation $81,700 $120,240
Leasehold Improvements $5,000 $70,000
Owner Furnished Items $9,000 $17,000
Utility, phone and lease deposits $2,500 $4,500
Insurance initial payment $600 $1,200
Computer and Software $3,200 $6,800
Printing & Marketing $10,000 $20,000
Wholesale Goods $6,000 $7,500
Washer and Dryer $0 $1,200
Permits, licenses $500 $1,000
Working Capital and Miscellaneous $8,000 $20,000
Estimated Totals $155,510 $309,390

 

Ongoing Fees:

Type of Fee Amount
Transfer $39,950
Royalty Fees 6% of Gross Revenue for Compliant Franchisees and 9% of Gross Revenue for Non-Compliant Franchisees.
Brand Development Fee 2% of Gross Revenue
Credit Card Processing Fees Amount of fee charged to PBFC from credit card processor.
Annual Convention $400
Technology Fee $0
POS Software Fee $89
Late Payment Fee $100 per week
NSF Fee $100
Audit Fees Cost of audit plus interest on underpayment at 18% per annum or the maximum rate permitted by state law, whichever is less
Daily Production Report ("DPR") , Quarterly P&Ls and Tax returns Report Late Fees Up to $300 per month
Indemnification Amount of judgment or claim

Date of FDD: 2012

The above information has been compiled from the FDD of Planet Beach.

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