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L. A. Tan

L. A. Tan

The total investment to open a L. A. Tan franchise ranges from $45,400 to $291,280. The initial franchise fee is $49,500. Ongoing royalties are 6%.

What is the L. A. Tan franchise?

L. A. Tan is a Midwest rooted personal care franchise built around tanning and wellness services, including traditional UV tanning, NAD+ Therapy, Cryotherapy, Infrared Sauna, and FDA Cleared Fat Loss treatments. The brand dates to the early 1990s. Nick Patel, its current owner and CEO and the Founder and CEO of L. A. Tan Corporate, has operated the chain since 2001, with corporate operations formally established in January 2002. Its headquarters are at 3775 W Arthur Ave, Lincolnwood, Illinois 60712. Under Patel, the company grew from four stores into what it describes as the fastest growing tanning salon chain in the Midwest and the third largest in the United States. Reports place its size between 115 and 160 plus salons across Illinois, Indiana, Ohio, Wisconsin, Washington, and Florida. PeerSense produced this analysis independently and without promotional funding from the franchisor.

L. A. Tan operates within the personal care services sector. 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, with a 7.8% compound annual growth rate through the 2026 to 2033 forecast window. Other methods estimate USD 401.57 billion in 2025, reaching USD 733.96 billion by 2034 at a 7.05% CAGR, or USD 172.94 billion in 2025 with a 5.4% CAGR through 2034. Demand is supported by health and hygiene awareness, social media beauty culture, increased male participation in skincare and wellness, and aging consumers seeking anti aging and skin rejuvenation treatments. Younger consumers also increasingly treat skincare as part of self care. L. A. Tan has expanded beyond UV and spray tanning into red light therapy, cryotherapy, infrared sauna, and laser based fat loss treatments. Tanning salons can benefit from relatively small lease footprints, frequent membership visits, add on services, and local market fragmentation, while branded operators may gain from broader supply and marketing resources.

The L. A. Tan franchise investment ranges from approximately $45,400 to $291,280. Costs vary with format, real estate, market conditions, and whether the site is a second generation conversion or a ground up build out. A comparable tanning brand lists a $49,500 first unit franchise fee, total investment of $121,300 to $249,000, a 6% royalty, a 1% local advertising contribution, and a 15% veteran franchise fee discount. L. A. Tan has stated that financing is available to qualified candidates and that veterans receive a discount. It also states a minimum of $0 in liquid capital, a figure that should be examined closely in the Franchise Disclosure Document to determine whether financing involves SBA eligible debt, third party lending, or seller financing. Estimates of L. A. These are corporate figures rather than unit results, so buyers should compare the stated investment with the brand's unit level support and FDD disclosures.

L. A. Tan presents its model as suitable for absentee or semi absentee ownership. Franchisees hire and manage trained staff instead of working at the location each day. Employees are trained and certified as skincare professionals and provide skin care consultations and customized service packages, creating ongoing hiring, retention, and certification responsibilities. Support includes real estate and site selection assistance, access to tanning and wellness equipment, reduced cost product purchasing through corporate relationships, and advertising and marketing assistance. A computer network allows customers to tan at any salon in the nationwide system. The company states that it provides comprehensive franchisee training, supported by its corporate management team and direct CEO guidance from Nick Patel, who has operated the chain since 2001. Services include 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. This broad menu can support a wellness focused position, while increasing staffing and training requirements.

The current L. A. Sources report more than 130 locations across four states in some cases and more than 160 salons across six states in others. The PeerSense Loan Activity Score for L. A. Tan is 16, categorized as Limited.

L. A. Tan grew from four stores in 2001 to reports of 115 to 160 plus locations across six states over more than two decades under consistent CEO leadership. Its formal corporate structure began in January 2002. The company expanded from its Midwest base across Illinois, Indiana, Ohio, Wisconsin, Washington, and Florida, and accepts franchise inquiries from Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Iowa, Idaho, Kansas, Kentucky, Louisiana, and other states. Its stated strengths include more than two decades of Midwest brand recognition, networked customer access, a multi service wellness menu, and corporate equipment and product pricing. Expansion into Red Light Therapy, Cryotherapy, Infrared Sauna, NAD+ Therapy, and FDA Cleared Fat Loss treatments creates opportunities for cross selling within the existing customer base. Multiple sources identify L. A. Tan as the third largest tanning salon chain in the United States, while the available markets still include areas with limited brand presence.

The intended franchisee is a manager and team builder rather than a hands on skincare technician. Retail management, healthcare administration, fitness business operations, and multi location service experience may translate well to the model. The company seeks franchisees across a broad geographic area, including states outside its Midwest core. Its absentee friendly structure may suit investors building several locations, with staffing and management systems potentially scaling more efficiently across three to five units than in a single unit business. Site selection assistance is part of the support package. The $45,400 low end may apply where second generation or conversion locations are available, while the $291,280 high end applies to full build outs in higher cost markets. Veterans receive a discount, and financing is available to qualified candidates.

For buyers reviewing personal care services franchises, L. A. Tan combines more than two decades of operating history, a stated third largest national position in tanning, and an expanded wellness menu. The global personal care market is projected to grow from $506.88 billion in 2024 toward nearly $1 trillion by 2033. Investment ranges from $45,400 to $291,280, with financing and veteran discount programs available. Corporate revenue estimates of $17.5 million to $36.5 million and reported system size of 115 to 160 plus locations across six states indicate corporate scale, but results at an individual location will depend on site quality, execution, competition, and service mix. PeerSense offers independent franchise research covering SBA lending history, Loan Activity Score analysis, location maps with Google ratings, FDD financial data, and comparison tools for evaluating L. A. Tan against other personal care concepts.

Loan Activity Score

16/100

SBA Default Rate

46.2%

Active Lenders

3

According to its Franchise Disclosure Document or public business records, L. A. Tan has 8 locations, all owned by franchisees. Public SBA loan records show 3 lenders made 13 loans to franchisees of L. A. Tan. PeerSense calculates L. A. Tan's score as 16 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 2001 · 8 locations

Investment

$45,400 to $291,280

Franchise Fee

$49,500

Total Units

8

8 franchised

Loan Activity Score
Medium
16
SBA Lending
0
Lender Quality
5
Transparency
4
Reach
4
Momentum
3

Proprietary PeerSense metric

Limited
Capital Sources
3SBA lenders

Distinct lenders in public SBA records for L. A. Tan

13

Total SBA loans

$210K

Average loan size

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

Referral fee at closing

SBA Lending Activity for L. A. Tan

Loan Activity Score Breakdown

Growing (10 to 24 loans)

Medium Confidence
16out of 100
Limited
Market Momentum3/35

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

Loan Safety0/25

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

Lender Confidence5/15

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

Transparency4/15

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

Footprint4/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

46.2%

vs 10.8% peer avg

SBA Loans

13

Total Volume

$2.7M

Active Lenders

3

States

3

vs. SBA Sector Average

-35.4%higher default rate

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

Key Highlights

Data Insights

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

SBA Default Rate

46.2%

35.4% above peer avg

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 to $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. The 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

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

L. A. Tan, unit breakdown

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

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L. A. Tan

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