Franchising Since: 1996
Headquarters: Marrero, Louisiana
Estimated Number of Units: 200
Franchise Description: The franchisor is Planet Beach Franchising Corporation (PBFC). Franchisees operate a Planet Beach outlet that offers automated spa services, nutrition, health products, spray tanning, ultraviolet light tanning, skin care products and other specialty items under the name and brand “Planet Beach.” Additionally, the Planet Beach outlet will offer products and service under the name of the franchisor’s affiliate brand, “HOTWORX.”
Training Overview: Franchisees and their Spa Director will be provided with virtual training and Planet Beach University Online curriculum for each location that they open. Franchisees and their Spa Director (if franchisees are not operating the Spa) are required to attend training. The Virtual Franchisee School Agenda currently includes five days of instruction. On-site Shadow Training consists of five days at an approved spa location with pre-approved shadow dates. Prior to attending Shadow Training, all online courses must be completed with passing exam grades by all franchisees and Spa Director(s). Any additional onsite training that corporate provides will be provided for a $200.00 per day fee.
Territory Granted: Franchisees will operate their spa only from the location which the franchisor approves as defined in the Franchise Agreement. During the term of the Franchise Agreement, if franchisees are in compliance with the Franchise Agreement, they will have a territory as identified in and defined by the Franchise Agreement (Protected Territory). The Protected Territory will generally be a circle, the center of which will be the location as defined by the signed lease and verified by the franchisee. The actual size and dimensions of the Protected Territory will depend upon the specific variables of the site including population density, marketing and development trends, traffic flow and natural and man-made boundaries. A map plotting the Protected Territory will be attached to the Franchise Agreement. If a radius is used to determine the Protected Territory, then the radius of the circle will be in the franchisor’s sole discretion and based on where the Spa site is located and will be up to either: (1) a radius of one-third of a mile if the spa is located in a densely populated area which may include suburbs; or (2) a two-mile radius if the spa is located in any other area.
Obligations and Restrictions: The franchisor recommends that franchisees personally supervise and attend to the daily operation of their Spa. If franchisees choose to operate the spa through a full-time Spa Director that they designate to manage their location, the Spa Director must personally supervise the day-to-day operations of the spa in their absence. Franchisees and their spouse will be required to sign a personal guaranty in connection with the obligations specified in the Franchise Agreement. The franchisor requires franchisees to offer and sell only certain of those goods or services that the franchisor has approved. Franchisees must refrain from any deviation from our standards and specifications without the franchisor’s written consent and must discontinue selling and offering for sale any services or products that the franchisor disapproves or discontinues. Franchisees must use the approved location only for the operation of a Planet Beach Spa, must keep the spa open and in normal operation for the minimum hours and days that the franchisor specifies or as required by their lease.
Term of Agreement and Renewal: The length of the initial franchise agreement is 10 years. A renewal term of five years is available, if the requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. On rare occasion in the past, the franchisor did offer franchisees the ability to purchase certain equipment on an installment basis but no longer offers such payment plans. The franchisor does not guarantee a franchisee’s note, lease or obligations.
Investment Tables:
<small>The above information has been compiled from the FDD of Planet Beach. Year of FDD: 2018.</small>
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| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $19,950 | $19,950 |
| Spa Equipment, Equipment Shipping and Install, Equipment Timer System, Computer and Software, Phone and Internet Equipment, Exterior Signage, Furniture and Washer/Dryer | $94,228 | $120,307 |
| Leasehold Improvements | $15,000 | $95,000 |
| CAD Fee | $1,200 | $1,200 |
| Franchisee Furnished Items | $9,000 | $17,100 |
| Utility, phone and lease deposits | $2,500 | $9,000 |
| Insurance initial payment | $600 | $1,200 |
| Printing & Marketing | $8,000 | $10,000 |
| Wholesale Goods/Inventory to Begin Operating | $6,000 | $7,500 |
| Permits, Licenses & Legal Fees | $500 | $3,000 |
| Additional Funds During Startup Period and Initial Operations, Including Working Capital (three months) | $12,000 | $35,000 |
| Out-Of-Pocket Initial Training Expenses, Including Travel and Lodging | $250 | $2,000 |
| Estimated Totals | $169,228 | $321,257 |
| Type of Fee | Amount |
|---|---|
| Transfer | $5,000 - $10,000 |
| Royalty Fees | $750 per month |
| Credit Card Processing Fees | 3% of amount charged |
| Annual Convention | $500 |
| Technology Fee | $0-$100 per month or $1,200 lump sum |
| POS Software Fee | $129 |
| Virtual Instructor Software Fee | $10 per sauna per month |
| Secret Shop Inspections | $100 per month |
| Training Fee | $200 per day |
| Administrative Fee for Permitted and Properly Redeemed Use of Daily Deal Sites | Varies. 6% of the return from Groupon to the franchisor for the redeemed voucher/deal from the spa. |
| Late Payment Fee | $100 per week |
| NSF Fee | $100 |
| Insurance Handling Fee | $250 |
| Required Revenue Reports, Quarterly P&Ls and Tax Returns Report Late Fees | Up to $300 per month |
| Indemnification | Amount of judgment or claim |
| Enforcement Fees | Varies |
| Noncompliance Real Estate Penalty Fee | $5,000 |
| Noncompliance of Prohibition of Advertising on Daily Deal Sites | $500 per day |
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