Sun Tan City Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$676,290 - $1,114,750
Total US Locations
252
Business Summary
SUN TAN CITY® operates tanning salons that offer tanning services, tanning equipment, and various skin care and beauty products. These salons also feature spa health and wellness services, products, and equipment, all within a distinctive exterior and interior design, following uniform standards and procedures.
Corporate History
The SUN TAN CITY® concept began with the first salon opening in 1999. The franchising entity, STC Franchising, LLC, was formed in Kentucky on April 20, 2007, and started offering SUN TAN CITY® franchises on March 1, 2007. In January 2011, the company acquired the tanworld® franchise system, which included 59 units, and offered tanworld® franchises until December 2011. Most of these tanworld® locations eventually converted to the SUN TAN CITY® brand, and by December 2015, no tanworld® franchisees remained. STC Franchising, LLC's parent company, STC Consolidated Operations, LLC, consolidated all company-owned SUN TAN CITY® Salons into its operations as of January 1, 2011.
Financial Overview
Investment Range
$676,290 - $1,114,750
Franchise Fee (High)
$30,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$587,730
Equipment Costs (High)
$909,750
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
STC Franchising, LLC has consistently achieved net income, reporting $5,654,284 in 2024 and $5,415,529 in 2023. The company maintains positive cash balances, with $142,145 at the end of 2024. Its financial statements have received an unqualified opinion from independent auditors for all reported periods, indicating fair presentation. While STC Franchising, LLC is profitable, its affiliated entities, including its parent company, have significant debt obligations, totaling approximately $11.5 million in term notes and $4.3 million in a line of credit as of December 2024. An additional $7.5 million term loan was secured by affiliates in January 2025. No concerns about the company's ability to continue operations have been noted by the auditors.
Financing Details
SUN TAN CITY® does not offer any direct or indirect financing options to its franchisees. This includes not guaranteeing any notes, leases, or other financial obligations for franchisees, nor does it sell, assign, or discount any franchisee financing arrangements to third parties. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
252
Franchised Units
162
Corporate Units
90
Avg Square Footage
3,000
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
SUN TAN CITY® has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
SUN TAN CITY® has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew with SUN TAN CITY®, franchisees must typically notify the franchisor of their intent during the last year of the agreement, but no less than 10 months prior to expiration. They must have substantially complied with all terms of their current franchise agreement and other agreements with SUN TAN CITY® or its affiliates, including making timely payments and correcting any previously communicated defaults. Franchisees may also need to remodel or expand their salon to meet current brand standards, or, if relocation is necessary, secure a new approved location and develop it according to current specifications. A successor franchise fee of $5,000 is required, and franchisees will need to sign SUN TAN CITY®'s then-current franchise agreement and a general release, which may contain materially different terms.
Training & Support Program
Franchisor Assistance
SUN TAN CITY® provides comprehensive assistance to its franchisees, starting before the salon opens. Pre-opening support includes helping with site evaluation for the first salon, approving proposed locations, providing mandatory salon specifications and preliminary layouts, and delivering 40 hours of on-site training for the initial salon, along with supervisor training at company-owned locations. Franchisees also receive development consultation and guidance on required purchases and grand opening advertising. After opening, SUN TAN CITY® offers ongoing marketing programs and periodically advises on maximum and minimum prices for products and services. Optionally, and potentially for additional fees, SUN TAN CITY® offers telephone consultations during specified hours, buying advisory services with lists of approved suppliers, and may act as a wholesaler for products. Franchisees can also benefit from newsletter services, attend meetings, access research and development regarding operating methods, and utilize the brand's operations manuals. General guidance is also provided on business operations, employee training, and authorized software use.
Initial Training Hours
80
Training Location
Company Salons in the field
Ongoing Support
After a SUN TAN CITY® salon opens, franchisees receive ongoing support which includes periodic updates on maximum and minimum prices for products and services, as well as ongoing marketing programs. Optionally, and potentially for additional fees, SUN TAN CITY® offers telephone consultations during specified hours, buying advisory services with lists of approved suppliers, and may act as a wholesaler for products. Franchisees can also benefit from newsletter services, attend meetings, access research and development regarding operating methods, and utilize the brand's operations manuals. General guidance is also provided on business operations, employee training, and authorized software use.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
SUN TAN CITY® franchisees receive a protected territory defined as a two-mile radius around their approved salon location. Within this "Area", SUN TAN CITY® will not establish or allow another franchised SUN TAN CITY® Salon, nor will it directly or indirectly own or operate another SUN TAN CITY® Salon.
Staffing Notes
SUN TAN CITY® requires that either the franchisee or a designated supervisor personally manage and operate the salon as their primary occupation. Franchisees must have at least one trained Salon Operator, with SUN TAN CITY® training and certifying individuals for key "first roles" within a franchise group, which include Salon Director, District Manager, Training Salon Director, and Trainer. Franchisees are responsible for ongoing training and certification for these roles in any additional salons they open. If a Salon Director is replaced, a certified Training Salon Director must conduct the training, or the new director must train at a company-operated location. If a Supervisor vacates their position, a new one must be designated within 90 days and complete training within 120 days.