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Hollywood Tans

Hollywood Tans

The total investment to open a Hollywood Tans franchise ranges from $50,000 to $359,500. The initial franchise fee is $50,000.

What is the Hollywood Tans franchise?

Hollywood Tans is a personal care franchise centered on indoor and sunless tanning services. Hollywood Tanning Systems, Inc. was incorporated in April 1994 by Ralph A. Venuto Sr. The company established its corporate headquarters at 11 Enterprise Court, Sewell, New Jersey 08080, United States. It began offering franchises for indoor tanning salons in September 1998 and expanded across the United States. At its peak, Hollywood Tans operated well over 300 salons, with another 100 units in development during 2006 and 2007. Growth began in the eastern United States and eventually reached 29 states, including Hawaii. More recent data lists 110 franchised units and 0 company owned units. PitchBook lists Hollywood Tans Group as Out of Business with 39 total employees, while other sources continue to describe Hollywood Tans as an active franchise opportunity and franchised locations remain in operation. Buyers should independently verify the franchisor's current status. ACI Capital of New York, a private firm, acquired the brand from Ralph Venuto Sr. in 2007. Hollywood Tans acquired its trademark in 2012. HT Acquisition Holdings, LLC is the parent company of HT Franchising Management, LLC, which operates as Hollywood Tans. The brand has historically described itself as the nation's largest chain of professional tanning salons and has presented itself as positioned for tremendous growth. The United States remains its primary country of operation, with no indication of international expansion in the available data. Hollywood Tans operates within a Personal Care Services market projected to rise from $416.86 billion in 2024 to $455.13 billion in 2025, a 9.2% CAGR, and to $652.9 billion by 2029 at a 9.4% CAGR. This overview is intended to support independent franchise research rather than repeat promotional claims.

The Personal Care Services market was valued at $416.86 billion in 2024 and is projected to reach $455.13 billion in 2025 at a 9.2% CAGR, with projected growth to $652.9 billion by 2029 at a 9.4% CAGR. The Professional Beauty Services Market was valued at USD 265.25 billion in 2024 and is projected to reach USD 377.21 billion by 2032 at a 4.5% CAGR. Another estimate places that segment at USD 247.24 billion in 2023 and nearly USD 395.69 billion by 2030, representing a 7.0% CAGR. The United States tanning salon industry is expected to generate $1.9 billion in revenue and grow by 2.2% in 2025, after a 0.8% CAGR during the preceding five years. The broader United States indoor tanning market is estimated at approximately $5 billion per year.

Approximately 28 million people use indoor tanning services each year, and about 10% of the American population visits an indoor tanning facility annually. The historical core customer was women between 18 and 35, but the customer base now includes women into their 60s. Men represent more than 25% of clientele. Sunless, or spray, tanning has become a larger part of industry sales, rising from 11% in 2008 to roughly 30% in recent years. Hollywood Tans has sought to become a leader and trendsetter in sunless tanning, responding to concerns about UV exposure and related health risks raised by health organizations. Demand has also moved toward natural looking results without UV exposure and toward advanced application methods. Other market trends include interest in organic salon services, online personal care bookings, and artificial intelligence used to improve customer experiences and address individual preferences. Services designed for men are also expanding, with the male grooming market expected to grow at a 7.9% CAGR from 2024 to 2030. Customers are seeking personalized and premium skin, hair, and wellness treatments. Digital booking can offer an operating benefit to brands that adopt it. Local tanning remains fragmented among independent operators, while national chains provide greater scale. Hollywood Tans has historically held the position of the nation's largest chain of professional tanning salons, giving the brand recognition within this market.

The initial franchise fee is $50,000. Direct franchise data lists total initial investment from $50,000 to $359,500. Other sources report older total investment figures from $286,600 to $366,500, more recent figures from $300,000 to $500,000, and another estimate of $274,200 to $394,250. Differences can reflect salon size, geographic location, local construction costs, and whether the owner opens a new salon or converts an existing space. Hollywood Tans states that it offers one of the lowest startup costs in the industry, attributing that position to a smaller footprint and the vertical design of its proprietary equipment. Specialized tanning equipment and utility upgrades generally represent a substantial share of the turnkey investment.

Applicants must show at least $100,000 in liquid capital. Historical information also cites a minimum liquid capital range of $75,000 to $100,000. The required net worth is $300,000, although one source cites $400,000. The core franchise data does not provide specific ongoing royalty or advertising fund rates. Industry information for Health and Fitness franchises, including tanning salons, often places royalties around 6% and marketing fees around 4%. Comparable spray tanning franchises commonly charge ongoing royalties of 6% and advertising royalties of 2%. Hollywood Tans offers veterans a 10% discount, and one source specifies a $5,000 discount. The opportunity can be viewed as a mid tier franchise investment within a growing market segment. Franchisees with strong credit may be able to finance up to 85% of the initial investment, subject to their financing arrangements and qualifications. HT Acquisition Holdings, LLC oversees HT Franchising Management, LLC, providing a corporate structure behind the brand. The PitchBook listing describing Hollywood Tans Group as Out of Business makes verification of current franchisor operations necessary.

The operating model combines memberships, tanning packages, upgrades, and product sales. The monthly tanning membership begins at $19.99 and is intended to produce recurring revenue. Members receive discounted prices on products and services, which can support repeat visits and customer loyalty. Hollywood Tans does not provide specific staffing requirements in the available information. Its Vertical Tanning System, or VTS, offers a no touch tanning experience in under 15 minutes and may require less labor than more service intensive models.

New franchisees must attend a one week, or 5 day, training seminar before opening. The seminar is held monthly at the corporate headquarters in Sewell, NJ. Training covers company setup, operating practices, and ways to avoid common business management problems. Each salon receives a dedicated corporate trainer who continues to provide education and assistance after opening. The corporate office also offers additional training seminars and regular salon visits. These services address operating efficiency, revenue development, brand standards, and consistency among locations. The franchisor assists with opening each salon on schedule and within the allocated budget through project management support.

The franchise uses a turnkey startup process and manufactures its own equipment. At its 60,000 square foot manufacturing plant, the company produces 360 degree stand up UV tanning booths, patented HT60 spray tanning booths, and UV Free Six Second Instant Tan Spray booths. In house production allows direct product support and service, discount equipment pricing, a guaranteed equipment supply, financing options, and a lifetime warranty on tanning equipment. Hollywood Tans also has a specialized millwork division that builds fixtures for each location. A dedicated truck delivers the materials needed for setup to the franchise site. These features are intended to support consistent layouts and reduce some equipment and installation concerns.

The corporate marketing department assists with planning, producing, and implementing grand opening promotions. It also supports continuing advertising campaigns tailored to individual markets. Hollywood Tanning Systems, Inc. may provide a corporate guaranteed signature on real estate leases, which can help with lease negotiations and financing. A franchisee entering a new, undeveloped market must sign a Development Agreement for at least three stores. In a more saturated market, a one store minimum may be available. The model can suit an owner operator involved in daily management or a remote investor overseeing operations, and multi salon ownership is encouraged.

Salon revenue comes from memberships, tanning packages, upgrades, and product sales. The monthly membership begins at $19.99 and is designed to create recurring revenue while giving members discounted prices on products and services. The United States tanning salon industry is projected to generate $1.9 billion in 2025 revenue and grow by 2.2%, following a 0.8% CAGR over the preceding five years. The overall United States indoor tanning market is estimated at approximately $5 billion per year. Hollywood Tans previously operated well over 300 salons and had another 100 units in development during 2006 and 2007, indicating that the model has operated at significant scale. The current network of 110 franchised units and 0 company owned locations reflects a franchise focused structure. Sunless tanning has grown from 11% of industry sales in 2008 to roughly 30% in recent years, giving Hollywood Tans a potential growth area as it seeks to become a leader and trendsetter in that category. The smaller footprint and vertical equipment design are cited by the brand as reasons for its low startup costs and may reduce the capital required compared with concepts that need larger investments. Equipment manufacturing provides direct support, discount pricing, a guaranteed supply, financing options, and a lifetime warranty.

Hollywood Tans experienced major expansion before a later period of recalibration. The brand reached well over 300 salons in the United States and had another 100 units opening or in development during 2006 and 2007. It expanded quickly in the eastern United States and eventually reached 29 states, including Hawaii. Current information lists 110 franchised units and 0 company owned units. PitchBook lists Hollywood Tans Group as Out of Business with 39 total employees, which conflicts with information describing an active franchise system and with the continued operation of franchised locations. Prospective franchisees should confirm the franchisor's operating status and long term stability. Hollywood Tans acquired its trademark in 2012. HT Acquisition Holdings, LLC oversees HT Franchising Management, LLC, which operates the brand, indicating corporate continuity after earlier ownership changes.

Hollywood Tans differentiates its franchise model through proprietary equipment and in house manufacturing. The Vertical Tanning System provides a no touch, sanitary tanning experience in under 15 minutes. The company manufactures 360 degree stand up UV tanning booths, patented HT60 spray tanning booths, and UV Free Six Second Instant Tan Spray booths at its 60,000 square foot manufacturing plant. Franchisees receive direct product support and service, discount equipment pricing, a guaranteed supply, financing options, and a lifetime warranty on Hollywood Tans equipment. The turnkey process also includes custom fixtures produced by the company's millwork division for each salon location. The brand's historical position as the nation's largest chain of professional tanning salons supports customer recognition. A corporate guaranteed signature on real estate leases may assist with rent negotiations and financing and may affect location economics. Hollywood Tans is also adapting its offering toward sunless tanning as demand has increased from 11% of industry sales in 2008 to roughly 30% in recent years. The VTS and other equipment reflect a focus on convenience, advanced service methods, and customer experience. The available information describes the ideal franchisee as either an owner operator who participates in daily salon management or a remote investor who oversees operations.

Loan Activity Score

24/100

SBA Default Rate

20.1%

Active Lenders

25

According to its Franchise Disclosure Document or public business records, Hollywood Tans has 110 locations, all owned by franchisees. Public SBA loan records show 25 lenders made 159 loans to franchisees of Hollywood Tans. PeerSense calculates Hollywood Tans's score as 24 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 1994 · 110 locations

Investment

$50,000 to $359,500

Franchise Fee

$50,000

Total Units

110

110 franchised

Loan Activity Score
High
24
SBA Lending
1
Lender Quality
7
Transparency
4
Reach
9
Momentum
3

Proprietary PeerSense metric

Limited
Capital Sources
25SBA lenders

Distinct lenders in public SBA records for Hollywood Tans

159

Total SBA loans

$213K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

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SBA Lending Activity for Hollywood Tans

Loan Activity Score Breakdown

Major Brand (100+ loans)

High Confidence
24out of 100
Limited
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety1/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence7/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency4/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint9/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

20.1%

vs 10.8% peer avg

SBA Loans

159

Total Volume

$33.8M

Active Lenders

25

8 selective

States

19

vs. SBA Sector Average

-9.3%higher default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

110 locations nationwide

Data Insights

Key performance metrics for Hollywood Tans based on SBA lending data

SBA Default Rate

20.1%

9.3% above peer avg

SBA Loan Volume

159 loans

Across 25 lenders

Lender Diversity

25 lenders

Avg 6.4 loans per lender

Investment Tier

Mid range investment

$50,000 to $359,500 total

Hollywood Tans: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2001

39 approvals. The best year on record for Hollywood Tans.

Top SBA State

New Jersey

42 SBA financed Hollywood Tans locations, the densest operator footprint.

Average Loan Size

$213K

Median $185K. Use as a sizing anchor when modeling your own Hollywood Tans unit.

Lender Concentration

55%

Concentrated

Share of Hollywood Tans approvals captured by the top 3 SBA lenders.

Hollywood Tans's SBA lending pipeline peaked in 2001 (39 approvals). Operator density is highest in New Jersey with 42 SBA financed locations. Average funded ticket sits at $213K, with the median at $185K. Lender mix is concentrated: the top three SBA lenders account for 55% of approvals. Credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$40K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$518

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Hollywood Tans, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Hollywood Tans

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman