GLO Tanning Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$462,299 - $917,650
Franchise Fee
$20,000
Min Cash Required
$40,000
Total US Locations
60
Business Summary
GLO Tanning Franchise LLC operates tanning salons under the GLO TANNING brand, offering a variety of tanning services, tanning equipment, skin care products, and beauty products, along with related merchandise and accessories.
Corporate History
GLO Tanning Franchise LLC was formed as an Oklahoma limited liability company on September 15, 2020, and began offering GLO TANNING franchises for sale on September 31, 2020. The GLO TANNING brand concept originated earlier, with the first salon opening in 2010. The franchisor's affiliate, Glo Tanning Centers, Inc., operates company-owned GLO TANNING Salons and holds the ownership of the System and Marks, which are licensed to GLO Tanning Franchise LLC for sub-licensing to franchisees. The franchisor itself does not engage in any business other than offering and selling GLO TANNING franchises, while its affiliate operates 12 company-owned salons.
Financial Overview
Investment Range
$462,299 - $917,650
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$40,000
Royalty %
6.5%
Marketing %
3%
Equipment Costs (Low)
$316,000
Equipment Costs (High)
$732,000
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GLO Tanning Franchise LLC's financial statements for the year ended December 31, 2023, received an unqualified audit opinion, indicating they present fairly in all material respects. However, an analysis of the balance sheet shows some areas of financial concern for GLO Tanning Franchise LLC. The company reported negative working capital of -$232,884, calculated by subtracting current liabilities ($473,688) from current assets ($240,804). Additionally, GLO Tanning Franchise LLC has a members' equity deficit of -$240,084. While the auditors determined there was no substantial doubt about GLO Tanning Franchise LLC's ability to continue as a going concern, these figures indicate that the company's current liabilities exceed its current assets and its total liabilities exceed its total assets.
Financing Details
GLO Tanning Franchise LLC does not offer any direct or indirect financing to its franchisees. This includes not guaranteeing any notes, leases, or other obligations. Franchisees are responsible for securing their own financing for the business.
Performance Metrics
Total US Locations
60
Franchised Units
48
Corporate Units
12
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
GLO Tanning Franchise LLC has no litigation to report. Neither the franchisor, its predecessor, its management, nor any affiliate offering franchises under the GLO TANNING trademark has been involved in any administrative, criminal, or civil actions alleging a felony, violation of franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations. There are also no pending actions, significant litigation, or effective injunctive or restrictive orders against them related to the franchise business or other business activities.
Bankruptcy History
GLO Tanning Franchise LLC has no bankruptcy history to report. Neither the franchisor, its predecessor, nor any person identified in its management has filed for bankruptcy, had bankruptcy filed against them, or been a principal officer of a company that filed for bankruptcy in the last 10 years.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their GLO TANNING franchise, franchisees must have substantially complied with their franchise agreement throughout its term. They will need to sign a new franchise agreement, which may have different terms and conditions from their original agreement. Franchisees may also be required to remodel or expand their salon to meet current GLO TANNING design standards and pay a successor franchise fee of $10,000.
Training & Support Program
Franchisor Assistance
GLO Tanning Franchise LLC provides extensive assistance to its franchisees both before and after their salon opens. Before opening, GLO Tanning Franchise LLC helps with site selection and approval, provides architectural specifications and preliminary layouts for the salon, and offers development consultation and guidance. Franchisees and key employees receive initial training through an online learning platform, and a Leader for the first salon may receive in-person training at a company-owned salon. GLO Tanning Franchise LLC also provides guidance on purchasing required fixtures, equipment, and initial inventory, and helps with grand opening advertising and promotional programs. After the salon opens, GLO Tanning Franchise LLC offers ongoing support through telephone consultations, buying advisory services with lists of approved suppliers, and wholesaling services where it may act as a supplier. Franchisees also benefit from ongoing marketing programs, newsletters about the GLO TANNING system, and invitations to meetings with other franchisees. GLO Tanning Franchise LLC conducts research and development on its operating methods and may provide suggested pricing for products and services. Additional guidance or training beyond the initial support may be provided at the franchisee's expense.
Initial Training Hours
40
Training Location
Online/virtual, with potential for in-person training at company salons.
Ongoing Support
GLO Tanning Franchise LLC provides ongoing support to its franchisees after their salons open. This includes telephone consultations based on schedules outlined in the operations manual. The franchisor offers buying advisory services, providing lists of approved suppliers for products, merchandise, and equipment, and may act as a wholesaler for some items. GLO Tanning Franchise LLC conducts ongoing marketing programs and sends newsletters about current events in the GLO TANNING franchise program. It also organizes meetings for franchisees for business or social purposes and conducts research and development regarding its operating methods. Franchisees may receive periodic suggestions for maximum and minimum prices for products and services. Additional guidance and training for employees can be provided at the franchisee's expense, including daily charges and travel/living expenses for GLO Tanning Franchise LLC personnel.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Each GLO TANNING franchisee receives a protected territory where GLO Tanning Franchise LLC and its affiliates will not establish another GLO TANNING salon within a two-mile radius of the franchisee's approved location.
Staffing Notes
GLO Tanning Franchise LLC requires franchisees to train and certify specific roles for their salon's operations. The mandatory training program covers Salon Operators, which include a Leader (salon manager) and a Spa Consultant. An Area Leader may also be included if such a role exists within the franchise group. Franchisees must ensure at least one trained Leader is always present. If a Leader is replaced or new salons are opened, a certified training Leader must train the new personnel. If no certified training Leader is available within the franchisee's organization, GLO Tanning Franchise LLC will provide this training at no cost to the franchisee, excluding travel and employee compensation. Franchisees are responsible for utilizing all current training programs for all their employees and for the expenses associated with all training programs, including travel, lodging, meals, and wages.