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L. A. Tan

L. A. Tan

Franchising since 2001 · 8 locations

The total investment to open a L. A. Tan franchise ranges from $45,400 - $291,280. The initial franchise fee is $49,500. Ongoing royalties are 6%. L. A. Tan currently operates 8 locations (8 franchised). The top SBA 7(a) lenders for L. A. Tan are Popular Bank, PNC Bank and Fifth Third Bank. PeerSense FPI health score: 16/100.

Investment

$45,400 - $291,280

Franchise Fee

$49,500

Total Units

8

8 franchised

FPI Score
Medium
16

Proprietary PeerSense metric

Limited
Capital Partners
3lenders available

Active capital sources verified for L. A. Tan financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Growing (10-24 loans)

Medium Confidence
16out of 100
Limited

SBA Lending Performance

SBA Default Rate

46.2%

6 of 13 loans charged off

SBA Loans

13

Total Volume

$2.7M

Active Lenders

3

States

3

Top SBA Lenders for L. A. Tan

What is the L. A. Tan franchise?

Deciding whether to invest in a tanning and wellness franchise requires cutting through the noise of promotional materials and getting to the actual numbers — unit economics, growth trajectory, competitive positioning, and operator support depth. L. A. Tan is a Midwest-rooted personal care franchise that has built its identity around being a comprehensive tanning and wellness destination, positioning itself not merely as a tanning salon but as a multi-service skincare and wellness provider offering everything from traditional UV tanning to NAD+ Therapy, Cryotherapy, Infrared Sauna, and FDA-Cleared Fat Loss treatments. The brand traces its origins to the early 1990s, though Nick Patel, the current owner and CEO who also operates as Founder and CEO of L. A. Tan Corporate, has run the chain since 2001, with corporate operations formally structured beginning in January 2002. Headquartered at 3775 W Arthur Ave, Lincolnwood, Illinois 60712, the company has grown from a four-store chain under Patel's leadership into what the brand describes as the fastest-growing tanning salon chain in the Midwest and the third-largest tanning salon chain in the United States. Across various source reports, the company operates somewhere between 115 and 160-plus salons across six states — Illinois, Indiana, Ohio, Wisconsin, Washington, and Florida — a geographic footprint that demonstrates meaningful regional density while still leaving substantial white space for franchise expansion. For the investor asking whether this L. A. Tan franchise opportunity deserves serious due diligence, the answer lies in unpacking the brand's two-decade growth trajectory, its evolving service menu, its corporate support infrastructure, and its transparent disclosure of investment parameters. This analysis is produced independently by PeerSense and contains no promotional content funded by the franchisor.

The personal care services industry, the sector in which the L. A. Tan franchise operates, represents one of the most structurally durable categories in retail services investment. The global Personal Care Market was valued at USD 506.88 billion in 2024 and is projected to reach USD 996.48 billion by 2033, reflecting a compound annual growth rate of 7.8% through the 2026 to 2033 forecast window. Alternative market sizing methodologies place the global figure at USD 401.57 billion in 2025, growing to USD 733.96 billion by 2034 at a CAGR of 7.05%, while yet another segmentation methodology values the category at USD 172.94 billion in 2025 with a projected 5.4% CAGR through 2034. Regardless of which sizing framework an investor applies, the directional story is consistent: this is a large, expanding market with secular tailwinds that are structural, not cyclical. Key demand drivers include rising consumer awareness around health and hygiene, the rapid proliferation of social media beauty culture that normalizes and encourages regular grooming expenditure, a growing male consumer segment increasingly engaged with skincare and wellness services, and a demographic wave of aging consumers driving demand for anti-aging and skin-rejuvenation treatments. The skincare segment in particular has emerged as a dominant category within personal care, with younger demographics actively prioritizing skin health as part of their self-care identity. For a brand like L. A. Tan, which has deliberately expanded its service menu beyond UV and spray tanning into red light therapy, cryotherapy, infrared sauna, and laser-based fat loss treatments, these macro trends represent a direct commercial opportunity to capture wallet share from consumers who are increasingly consolidating their wellness spending at fewer, more comprehensive providers. The tanning salon segment within this broader market benefits from relatively low lease footprints, high repeat-visit frequency from membership-model customers, and the ability to layer high-margin add-on services onto a loyal installed base — all characteristics that franchise investors in the personal care category actively seek. Fragmentation at the local level remains significant, which means that branded, professionally operated chains with national supply chain advantages and marketing infrastructure hold a structural edge over independent operators.

The L. A. Tan franchise investment range spans from a low of approximately $45,400 to a high of $291,280, a spread that reflects meaningful variability in format type, real estate configuration, geographic market cost, and whether a franchisee is entering a second-generation conversion location versus executing a full ground-up build-out. For context, comparable tanning salon franchise concepts in the market reflect similar investment architectures — one competitive brand in the space lists a franchise fee of $49,500 for the first unit, with total investment between $121,300 and $249,000 and an ongoing royalty of 6%, alongside a 1% local advertising contribution and a 15% veteran discount on the franchise fee. The L. A. Tan franchise investment at its upper bound of $291,280 is consistent with the mid-tier range for personal care service franchises nationally, sitting well below the capital thresholds of full-service spa or medical aesthetics concepts but above simple kiosk-format beauty services. L. A. Tan has publicly stated that it offers financing options to qualified candidates and extends a discount for veterans, which meaningfully improves accessibility for a buyer population that often brings operational discipline from military service. The brand also states that interested parties should have at least $0 in liquid capital to invest as a stated minimum threshold, which is an unusually low floor that signals the company's reliance on financing structures to bring qualified operators into the system — a dynamic that prospective investors should examine carefully in the Franchise Disclosure Document to understand the composition of that financing, whether it is SBA-eligible debt, third-party lending, or seller financing arrangements. The L. A. Tan corporate entity's estimated annual revenue varies across research sources, with figures ranging from $17.5 million to $36.5 million per year, and a bracketed estimate of $10 to $50 million, while the estimated revenue per employee for L. A. Tan Corporate stands at $249,700. These are corporate-level metrics and do not directly represent individual franchise unit performance, but they offer a proxy signal for the scale and financial complexity of the franchisor entity that a franchisee is entering into a long-term relationship with. As a franchise opportunity that positions itself in the personal care services category with a multi-service wellness platform, the L. A. Tan franchise cost structure warrants thorough FDD review against both category benchmarks and the brand's own unit-level support infrastructure.

The L. A. Tan operating model is explicitly designed around the concept of absentee or semi-absentee ownership, which is a distinctive and commercially important positioning statement for investors who are not seeking an owner-operator lifestyle business. This model requires franchisees to hire and manage trained staff rather than operate the location personally on a daily basis, which shifts the operational challenge from personal labor to talent management, employee retention, and systems compliance. Employees at L. A. Tan are trained and certified as skincare professionals, and each location is staffed to deliver complete skin care consultations and customized service packages — a labor model that requires meaningful investment in onboarding and ongoing certification. The company supports franchisees with a suite of operational resources that includes real estate support and site selection assistance, which is a critical service given that tanning salon success is heavily influenced by visibility, accessibility, and proximity to the health-and-fitness consumer segment. Franchisees also receive access to top-of-the-line tanning and wellness equipment, reduced-cost product purchasing through corporate supply relationships, and advertising and marketing support designed to drive foot traffic and membership conversions. All L. A. Tan locations are networked through a computer interface that allows patrons to tan at any salon in the nationwide network — a technology infrastructure decision that supports customer retention across geographic moves, enhances perceived brand value, and gives corporate visibility into system-wide usage patterns. The company states it provides comprehensive training to its franchisees, backed by the corporate management team and direct CEO guidance from Nick Patel, who has operated the chain since 2001 and brings over two decades of brand-specific operational knowledge to that advisory relationship. The service menu across L. A. Tan locations includes Custom Airbrush Tan, Red Light Therapy, Complexion Treatment, FDA-Cleared Fat Loss, NAD+ Therapy, Localized and Whole Body Cryotherapy, Infrared Sauna, Emerald Laser, and Zerona Laser — a 10-plus service category roster that positions the franchise as a wellness hub rather than a single-service tanning provider, which is both a competitive advantage in customer acquisition and a staffing and training complexity that operators must plan for.

Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document for L. A. Tan. This means prospective franchisees will not find average revenue per unit, median unit-level sales, or profitability ranges in the standard FDD disclosure. The absence of Item 19 disclosure is not unusual — it is an optional FDD section that franchisors may choose not to include — but it does elevate the importance of alternative due diligence pathways for investors evaluating the L. A. Tan franchise revenue potential. At the corporate level, L. A. Tan's estimated annual revenues have been reported across sources ranging from $17.5 million to $36.5 million, with a broader bracketed estimate of $10 to $50 million reflecting variation across measurement methodologies and time periods. The revenue-per-employee metric of $249,700 at the corporate level provides a partial proxy for operational productivity. For industry benchmarking purposes, the personal care services sector broadly supports unit economics that are driven by membership model recurring revenue, retail product attachment rates, and service upsell conversion — all three of which are mechanisms that L. A. Tan's multi-service platform is structurally designed to leverage. The brand's franchise system, which the company reports at over 130 locations across four states in some sources and over 160 salons across six states in others, suggests a system scale that is large enough to generate meaningful data across a range of operating environments, making the decision not to disclose Item 19 a gap that serious prospective franchisees should address directly during discovery day conversations and by speaking with existing franchisees in the system as part of their FDD-mandated contact list review. The FPI Score assigned to L. A. Tan in the PeerSense database is 16, categorized as Limited, which is a composite intelligence signal that investors should contextualize alongside the brand's operational history and growth trajectory. The total investment range of $45,400 to $291,280 creates a wide band within which unit-level payback periods will vary substantially depending on format, market, and operator execution quality.

L. A. Tan's growth trajectory from a four-store chain in 2001 to a system reporting between 115 and 160-plus locations across six states represents a compound growth story spanning more than two decades under consistent CEO leadership. Nick Patel's tenure since 2001 and the formal corporate structure established in January 2002 have created organizational continuity that is comparatively rare in franchise systems of this scale. The brand's geographic expansion across Illinois, Indiana, Ohio, Wisconsin, Washington, and Florida demonstrates a deliberate move from Midwest concentration toward national presence, and the company is actively accepting franchise inquiries from a wide array of additional states including Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Iowa, Idaho, Kansas, Kentucky, Louisiana, and others — a signal of aggressive near-term expansion intent. The competitive moat that L. A. Tan has constructed rests on several structural pillars: two-plus decades of brand recognition in Midwest markets, a networked technology infrastructure that enables system-wide customer portability, a proprietary multi-service wellness menu that extends customer lifetime value well beyond traditional tanning visits, and corporate-negotiated equipment and product pricing that individual operators could not replicate independently. The brand's decision to expand into Red Light Therapy, Cryotherapy, Infrared Sauna, NAD+ Therapy, and FDA-Cleared Fat Loss treatments reflects a strategic read of the wellness market that aligns with the broader consumer shift toward integrated self-care destinations. This service diversification also creates natural cross-sell and upsell revenue pathways within the existing customer base, which can improve average transaction value and membership retention rates — two of the most powerful levers in personal care franchise unit economics. The brand is identified in multiple sources as the third-largest tanning salon chain in the United States, a competitive position that provides national credibility while preserving substantial growth runway in underpenetrated geographies.

The ideal L. A. Tan franchise candidate is an entrepreneur who brings management and team-building competency rather than hands-on technical skincare expertise, since the brand's absentee-owner model is designed to be operated through certified staff under franchisee oversight. Candidates with backgrounds in retail management, healthcare administration, fitness business operations, or multi-location service businesses will find the operational framework most accessible. The company actively seeks franchisees across a broad geographic range, with particular expansion interest in states well beyond the established Midwest core, suggesting that first-mover territory opportunities exist in markets where L. A. Tan brand recognition is still nascent but where personal care consumer demographics are strong. Multi-unit ownership is a natural fit for the L. A. Tan franchise system given the absentee-friendly operating model — investors who intend to build a portfolio of locations rather than operate a single unit will find the staffing and management infrastructure more efficiently scalable across three to five locations than as a single-unit lifestyle business. The company provides site selection assistance as part of its franchise support package, which accelerates the timeline from signing to opening for operators who are not experienced in commercial real estate transactions. The total investment range of $45,400 at the low end creates an accessible entry point for markets where second-generation or conversion locations are available, while the $291,280 upper bound applies to full build-out scenarios in higher-cost markets. Veterans receive a discount on the franchise investment, and financing options are available for qualified candidates, which collectively reduce the out-of-pocket capital requirement for entry-level franchise investment.

For investors conducting serious due diligence on the personal care services franchise category, L. A. Tan presents a franchise opportunity that combines two decades of operational history, a third-largest national competitive ranking in the tanning salon segment, and a strategically expanded wellness service menu that positions the brand to capture growth across the projected expansion of the global personal care market from $506.88 billion in 2024 toward nearly $1 trillion by 2033. The brand's total investment range of $45,400 to $291,280, combined with available financing and veteran discount programs, positions L. A. Tan as an accessible to mid-tier franchise investment within the personal care category. The absence of Item 19 financial performance disclosure in the current FDD means that prospective franchisees must be especially rigorous in their independent validation of unit-level economics through franchisee interviews, market analysis, and professional financial advisory review. The corporate revenue range of $17.5 million to $36.5 million and the system's reported scale of 115 to 160-plus locations across six states provide macro-level confidence in the franchisor's operational continuity, but individual unit performance will be determined by location quality, operator execution, local competitive dynamics, and service mix optimization. PeerSense provides exclusive due diligence data including SBA lending history, FPI score analysis, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow investors to benchmark the L. A. Tan franchise against competing personal care service concepts across every material investment dimension. Explore the complete L. A. Tan franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

16/100

SBA Default Rate

46.2%

Active Lenders

3

Key Highlights

Data Insights

Key performance metrics for L. A. Tan based on SBA lending data

SBA Default Rate

46.2%

6 of 13 loans charged off

SBA Loan Volume

13 loans

Across 3 lenders

Lender Diversity

3 lenders

Avg 4.3 loans per lender

Investment Tier

Mid-range investment

$45,400 – $291,280 total

L. A. Tan — 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

2005

8 approvals — best year on record for L. A. Tan.

Top SBA State

Illinois

9 SBA-financed L. A. Tan locations — the densest operator footprint.

Average Loan Size

$210K

Median $240K — use as a sizing anchor when modeling your own $L. A. Tan unit.

Lender Concentration

100%

Concentrated

Share of L. A. Tan approvals captured by the top 3 SBA lenders.

L. A. Tan's SBA lending pipeline peaked in 2005 (8 approvals). Operator density is highest in Illinois with 9 SBA-financed locations. Average funded ticket sits at $210K, with the median at $240K. Lender mix is concentrated: the top three SBA lenders account for 100% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$36K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$470

Principal & Interest only

Locations

L. A. Tanunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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L. A. Tan