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Planet Beach

Planet Beach

The total investment to open a Planet Beach franchise ranges from $177,162 to $351,096. The initial franchise fee is $69,950. Ongoing royalties are 6%.

What is the Planet Beach franchise?

Planet Beach Franchising Corporation operates in the Fitness and Recreational Sports Centers category and pioneered the automated spa model. Stephen Smith founded the company in 1995 and opened its first tanning salon in New Orleans as Electric Beach. The company began franchising in 1996 and adopted the Planet Beach name to create an otherworldly, relaxing customer experience. That year, Smith recruited Nancy Price from Gold's Gym to support franchisee recruitment. The first Planet Beach franchise opened in Atlanta, Georgia, in October 1996. The company is headquartered in New Orleans, US, and its original Uptown New Orleans location continues to operate more than two decades after opening. Stephen P. Smith remains CEO. The brand shifted from a traditional tanning salon to a contempo spa in 2004 and completed that repositioning by 2005, focusing on affordable, accessible automated spa services. Recent disclosures report 195 franchised units and 1 company owned unit, with more than 200 locations globally.

Planet Beach operates within the Fitness and Recreational Sports Centers market and serves broader demand for wellness, self care, stress reduction, and accessible beauty treatments. Consumers increasingly seek convenient services that support mental and physical well being, save time, and improve lifestyle quality. Automated services address demand for efficiency and privacy, often at a more accessible price than traditional full service spas. The broader wellness market includes many local and regional operators, while automated contempo spa services represent a less saturated niche. Increasing disposable income, an aging population seeking rejuvenation, and greater emphasis on personal health and hygiene after the pandemic also support wellness demand. Planet Beach uses a model designed around recurring membership revenue.

The initial franchise fee is $69,950 for two licenses. The fee is $39,950 for one license, $89,950 for three licenses, and $20,000 for each license beyond the third. Other sources report an initial fee of $19,950, which may reflect a different FDD year or a promotional offer, so buyers should review the current Franchise Disclosure Document. The 2015 FDD estimates total investment at $177,162 to $351,096 and lists a Start Up Investment for a new equipment mix of approximately $300,000. Other reported ranges are $104,300 to $248,900 and $201,850 to $392,550. The final requirement depends on location, leasehold improvements, equipment selection, and local market conditions. Required financial qualifications include $80,000 in liquid capital and a minimum net worth of $300,000. Other sources report liquid capital requirements from $50,000 to $100,000, including $50,000. The royalty is 6% of gross sales. Planet Beach has a Loan Activity Score of 31, rated Limited, which is a preliminary indicator of financial viability and franchisee satisfaction.

The operating model centers on automated spa services. Franchisees focus on membership sales, customer service, facility cleanliness, the contempo spa environment, and routine maintenance of specialized equipment. Automation supports a lean staffing structure compared with traditional labor intensive spas. Specific formats beyond the contempo spa concept are not detailed. Planet Beach provides franchisee training, although the duration and location are not specified. Training typically covers business management, marketing, operating procedures, equipment, and customer service. Ongoing support typically includes field consultants, technology for memberships and scheduling, centralized marketing, and supply relationships for equipment and consumables. Territories are designed to provide exclusivity within a defined geographic area. The tiered fee structure encourages multi unit development. Once operations are established, the model may support a semi absentee owner with a strong management team, although owner involvement can be useful during the early stages.

Planet Beach reported more than 600 awarded locations across the US, Canada, and Australia in 2005 and ranked #52 in Entrepreneur Magazine's Fastest Growing Franchises. By September 2012, it had more than 250 locations in 7 countries. Its US franchised outlets declined from 307 in 2010 to 43 in 2020, according to 2021 FDD data, and the 2021 FDD reported 49 total US locations. More recent information, likely from 2021 to 2024, reports more than 200 global locations, including 195 franchised units and 1 company owned unit in the 2026 FDD, although that figure may be based on a 2015 FDD. The brand therefore experienced a significant domestic contraction while maintaining or rebuilding its international and overall global presence after the 2004 to 2005 shift to automated spa services.

Planet Beach's growth history includes rapid expansion, domestic contraction, and continued international activity. The brand reported more than 600 awarded locations across the US, Canada, and Australia in 2005 and ranked #52 on Entrepreneur Magazine's Fastest Growing Franchises list. Planet Beach reported more than 250 locations in 7 countries by September 2012 and more than 200 locations globally more recently, including 195 franchised units and 1 company owned unit in the 2026 FDD, based on 2015 data. Its international presence includes Egypt, Australia, Canada, and Saudi Arabia. The company also planned two locations in Poland by late 2014 and another in early 2015. David Mesa became President of Franchise Operations in July 2014, overseeing domestic and international franchise operations. The brand's position in automated spas, its 1995 founding, and its shift from tanning to automated spa services define its differentiation within the wellness market.

A suitable Planet Beach franchise candidate is business minded, comfortable with management, and interested in wellness and beauty. Experience in customer service, retail management, or sales can help with membership sales and client satisfaction, although specific industry experience is not stated as a requirement. The financial qualifications include $80,000 in liquid capital and a minimum net worth of $300,000. Reduced per unit fees for multiple licenses support a multi unit strategy, allowing an owner operator to develop a first location and potentially move toward semi absentee ownership as the portfolio grows. Planet Beach offers opportunities in 47 US states and Washington D.C., including Alaska, Alabama, Arizona, California, Florida, Georgia, Hawaii, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Oregon, Pennsylvania, Texas, and Virginia. International opportunities include Master Franchise opportunities in Canada and operations or expansion in Egypt, Australia, Saudi Arabia, and Poland. The franchise agreement term is not specified. Transfers and resales generally require compliance with franchisor terms, approval, and possible fees.

Planet Beach merits careful due diligence for buyers considering an automated wellness concept. The brand moved from tanning to a contempo spa model built around accessible automated services and has maintained more than 200 global locations, including 195 franchised units. PeerSense provides independent franchise research that includes SBA lending history, the Loan Activity Score, location maps with Google ratings, FDD financial data, and comparison tools. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders; it is not a lender.

Loan Activity Score

31/100

SBA Default Rate

46.9%

Active Lenders

57

According to its Franchise Disclosure Document or public business records, Planet Beach has 249 locations, all owned by franchisees. Public SBA loan records show 57 lenders made 318 loans to franchisees of Planet Beach. PeerSense calculates Planet Beach's score as 31 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 1992 · 249 locations

Investment

$177,162 to $351,096

Franchise Fee

$69,950

Total Units

249

249 franchised

Loan Activity Score
High
31
SBA Lending
0
Lender Quality
7
Transparency
11
Reach
10
Momentum
3

Proprietary PeerSense metric

Limited
Capital Sources
57SBA lenders

Distinct lenders in public SBA records for Planet Beach

318

Total SBA loans

$219K

Average loan size

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

Referral fee at closing

SBA Lending Activity for Planet Beach

Loan Activity Score Breakdown

Major Brand (100+ loans)

High Confidence
31out 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 Confidence7/15

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

Transparency11/15

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

Footprint10/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

46.9%

vs 10.8% peer avg

SBA Loans

318

Total Volume

$69.6M

Active Lenders

57

8 selective

States

37

vs. SBA Sector Average

-36.1%higher default rate

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

Key Highlights

249 locations nationwide

Data Insights

Key performance metrics for Planet Beach based on SBA lending data

SBA Default Rate

46.9%

36.1% above peer avg

SBA Loan Volume

318 loans

Across 57 lenders

Lender Diversity

57 lenders

Avg 5.6 loans per lender

Investment Tier

Mid range investment

$177,162 to $351,096 total

Payment Estimator

Loan Amount$142K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$1,834

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

Planet Beach, unit breakdown

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

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Planet Beach

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