Sun Tan City franchise unit economics
Sun Tan City franchisees run tanning and spa salons from leased sites with a two-mile protected radius, selling monthly memberships, single UV sessions, spray tanning, spa services and lotions.
Sun Tan City franchise at a glance
Item 19 of Sun Tan City's 2026 FDD reports 2025 revenue, sessions and membership collections for 154 franchised salons and 92 company salons.
Sun Tan City franchisees averaged $627,114 of sales in 2025, with a median of $587,086, according to Item 19 of Sun Tan City’s 2026 FDD, issued 31 March 2026. The 154 in that group are 99%* of Sun Tan City’s 156 locations. Fees paid to Sun Tan City come to about 10%* of sales.
- A Sun Tan City franchise costs $1,078,790 to $1,797,750 to open, including a $30,000 initial franchise fee, according to the brand's 2026 FDD.
- Sun Tan City charges a royalty of 8% of sales, a 2% brand fund contribution and a $428 monthly technology fee.
- 44% of reporting Sun Tan City locations reached the average.
- Work out Sun Tan City's fees at your own sales with the minimum fee calculator.
These figures come from Sun Tan City's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- The build costs 1.72 to 2.87 times a year’s revenue. $1,078,790 to $1,797,750 against $627,114 *, building work of $450,000 to $800,000 and tanning and spa equipment of $450,000 to $700,000 between them are 83% of the low end.
- Zero franchised salons opened in two years. Eleven opened in 2023, then zero in 2024 and zero in 2025, against 11 departures, so the count fell from 167 to 156 *, with four of the 2025 losses reacquired by the brand.
- A session is worth $14.98 at a franchised salon and $13.46 at a company one. That is 11.3% more *, on 17.7% fewer sessions a month, so franchisees monetise a visit better than the brand’s own estate does.
- Membership collections are under half of revenue. Membership collections are 48.1% of the franchised average and 47.3% of the company one, $301,579 and $323,902 *.
- Fees paid to the brand are 10% of revenue. An 8% royalty and the 2% national fund, $62,711 at the franchised average *, with no minimum royalty anywhere. The 3% advertising minimum contains the 2% fund, so the salon spends a further 1% locally.
How much does a Sun Tan City franchise make?
The average Sun Tan City unit reported $627,114 of revenue in the 2026 FDD, and the median reported $587,086. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 10% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top Sun Tan City performers
Sun Tan City publishes a range for its salons instead of grouped averages. The highest-selling of the 154 Sun Tan City franchised salons billed $1,520,382 in 2025. The lowest-selling Sun Tan City franchised salon billed $200,285. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $587,086. The average was $627,114. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The highest-selling Sun Tan City franchised salon sells 7.6× the lowest-selling one. Catchment, daytime population and neighboring businesses affect where a location falls.
- Territory.Sun Tan City franchisees sell from salons with a street address inside a territory, so the number of people who live or work near each one sets how many customers it can draw.
- Opening cost range.Opening costs $1,078,790 to $1,797,750, a 1.7× range inside one brand.
Live operating levers
- Membership drives the model.Track how many members join, how many cancel, and what each member spends beyond the plan.
- Fees.Sun Tan City’s fees run about 10.0% of sales, and Sun Tan City sets no minimum royalty, so the rate is the same at every sales level.
Context you underwrite around
- Locations included.These figures cover 154 of 156 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.Item 19 publishes no profit or cost data for franchised locations. The only margin figures in the document come from the brand’s own locations.
Discounts available
- Sun Tan City may waive or reduce the initial franchise fee for each existing tanning salon converted to a Sun Tan City salon under an agreed conversion plan.
- Sun Tan City charges $10,000 up front for each additional salon under an area development agreement, credited toward that salon's $30,000 fee (the $20,000 balance is due at signing).
From Item 5 of the Sun Tan City 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
Two estates
Company and franchised salon results, 2025
| Measure | Company salons, 92 | Franchised salons, 154 | ||
|---|---|---|---|---|
| Average | Median | Average | Median | |
| Sessions a month | 4,240 | 4,070 | 3,488 | 3,334 |
| Membership collections | $323,902 | $313,438 | $301,579 | $279,177 |
| Other revenue | $360,969 | $342,000 | $325,535 | $311,137 |
| Total sales | $684,871 | $665,809 | $627,114 | $587,086 |
| Lowest total sales | $299,816 | $200,285 | ||
| Highest total sales | $1,632,464 | $1,520,382 | ||
| Reaching the average | 39, 42% | 67, 44% | ||
| Average years trading | 16.9 | 12.7 | ||
Every figure is as the brand reported it, with company salons owned by the franchisor’s parent and concentrated in Kentucky, Indiana, Tennessee and West Virginia.
Company salons bill 9.2% more and have been open 4.2 years longer. That is $684,871 against $627,114, on 16.9 years of trading against 12.7 *.
The company median is closer to its average than the franchised median. The company median is 97.2% of its average while the franchised median is 93.6% *, so the franchised group has the longer right tail, running from $200,285 to $1,520,382.
The franchised range is 7.59 times and the company range 5.44. * The franchised range is wider at the bottom, with a lowest-selling franchised salon billing $99,531 less than the lowest-selling company one.
Membership is 47.3% of company revenue and 48.1% of franchised. The Sun Tan City gap is 0.8 points *.
Around 42% of salons in each estate reach their own average. That is 39 of 92 and 67 of 154, so an owner planning against $627,114 is planning above the middle of the group, which bills $587,086.
The session
Revenue per session and per bed
| Measure | Company salons | Franchised salons | Difference * |
|---|---|---|---|
| Sessions a month | 4,240 | 3,488 | −17.7% |
| Sessions a year * | 50,880 | 41,856 | −9,024 |
| Revenue for each session * | $13.46 | $14.98 | +11.3% |
| Membership for each session * | $6.37 | $7.21 | +13.2% |
| Other revenue for each session * | $7.09 | $7.78 | +9.7% |
| Revenue for each bed, on 17 beds * | $40,287 | $36,889 | −8.4% |
Sessions and revenue are as the brand reported it and every per-session and per-bed figure divides them out on a 17-bed salon, marked * throughout.
A franchised salon earns $1.52 more for each session. That is $14.98 against $13.46 *, and across 41,856 sessions a year the difference is worth $63,621.
The highest-selling franchised salon runs at $1,520,382. That is 2.42 times the franchised average *, and at the average revenue per session that is about 101,500 sessions a year, or 8,460 a month against a group average of 3,488.
Every extra session a day is worth $5,468 a year. That is $14.98 across 365 days *, so a salon adding ten sessions a day adds $54,680, which is 8.7% of the franchised average.
Membership is worth $7.21 for each session at a franchised salon. Everything else brings $7.78, so lotions, spray tanning and spa services together just outsell the subscription per visit *.
A 17-bed salon earns $36,889 for each bed. That is on the franchised average *, and the tanning and spa equipment costs $450,000 to $700,000. So the equipment alone costs 0.72 to 1.12 times what a franchised salon bills in a year.
What the fees come to
Brand and marketing fees
| Charge | Rate | Lowest-selling $200,285 | Median, $587,086 | Average, $627,114 | Highest-selling, $1,520,382 |
|---|---|---|---|---|---|
| Royalty, new franchisee | 8% of sales | $16,023 | $46,967 | $50,169 | $121,631 |
| Advertising requirement | 3% of sales | $6,009 | $17,613 | $18,813 | $45,611 |
| of which the national fund | 2%, counted inside | $4,006 | $11,742 | $12,542 | $30,408 |
| Paid to the brand, royalty and national fund | 10% | $20,029 | $58,709 | $62,711 | $152,039 |
| Total with the 1% local advertising | 11% | $22,031 | $64,579 | $68,983 | $167,242 |
| Technology and services | About $428 a month plus setup | $5,137 | $5,137 | $5,137 | $5,137 |
Every rate is as the brand reported it and each dollar figure is marked, with technology covering the software support, monitoring, application, ecommerce, email, digital messaging and card services charges at their current rates.
Fees paid to the brand stay at 10% of revenue at every sales level. There is no minimum royalty and no dollar minimum on advertising anywhere in the schedule *, which is unusual. It means a slow year costs the brand as much as it costs the owner.
Converting an existing salon starts the royalty at 5%. The Sun Tan City conversion royalty is 5% for the first twelve months, 6% for the next twelve and 7% from month 25 for the rest of the term. So a converter pays 1 point less than a new franchisee for the whole term, worth $6,271 a year at the franchised average *.
The national fund has quadrupled since 2014. The Sun Tan City national fund rate was 0.5% at launch, 1.0% from 2017, 1.5% from 2019 and 2.0% from February 2024. The brand may take it to 2% without a vote, with anything higher requiring a majority of company and franchise salons.
The fund spent 83% of its money on digital advertising last year. That went to social, video and search, with 13% on email, text and customer systems and 4% in salon, so effectively the whole national spend is chasing bookings.
Technology runs about $428 a month before card processing. Software support, monitoring at $49 a device, an application at $75, ecommerce at $150, email at $50, digital messaging and applicant tracking *, small against the 10% paid to the brand, and it arrives whatever revenue does.
A million to open
Cost to open a 17-bed salon
| Line | Low | High |
|---|---|---|
| Building work | $450,000 | $800,000 |
| Tanning and spa equipment | $450,000 | $700,000 |
| Office equipment, furniture, counters and interior signage | $50,000 | $75,000 |
| Working capital, three months | $50,000 | $100,000 |
| Initial franchise fee | $30,000 | $30,000 |
| Everything else | $48,790 | $92,750 |
| Total | $1,078,790 | $1,797,750 |
| Against a year of average revenue * | 1.72 times | 2.87 times |
Every figure is as the brand reported it for a newly constructed 17-bed salon excluding real estate. The everything-else row groups the remaining printed lines, and the revenue comparison is marked *.
The two biggest lines are 83% of the low end. That is $900,000 of building work and equipment against a $1,078,790 total *, so almost the whole decision is the build.
The initial franchise fee can be zero. Fees actually charged in 2025 ranged from $0 to $30,000. Sun Tan City can waive or reduce it for an existing tanning salon that converts under an agreed plan. So the fee is a conversion lever.
A three-salon development agreement costs $50,000. Of that, $30,000 is credited against the first salon’s franchise fee, so the uncredited cost of committing to three is $20,000 *.
No financing is offered, directly or indirectly. The brand declines to guarantee a note or lease and declines to discount financing arrangements. On a build of this size, that puts the whole capital question on the franchisee and its lender.
The protected area is a two-mile radius. The Sun Tan City grant is site-specific and expressly non-exclusive, on a build costing more than a million dollars.
Questions we get asked
Questions an owner asks
How much does a Sun Tan City franchise make?
Sun Tan City franchisees averaged $627,114 of sales in 2025, with a median of $587,086, according to Item 19 of Sun Tan City’s 2026 FDD, issued 31 March 2026. The 154 in that group are 99%* of Sun Tan City’s 156 locations. Fees paid to Sun Tan City come to about 10%* of sales.
What does a Sun Tan City salon bill?
Across 154 franchised salons trading all of 2025, the average was $627,114 of total sales and the median $587,086, on 3,488 sessions a month. The lowest-selling billed $200,285 and the highest-selling $1,520,382, and 67 of the 154 reached the average. The 92 company salons averaged $684,871 on 4,240 sessions a month, having traded 16.9 years against the franchised group’s 12.7.
How much of the revenue recurs at Sun Tan City?
At a franchised Sun Tan City salon, membership collections are 48.1% of sales: $301,579 of $627,114. At company salons the share is 47.3%. The rest is single sessions, spray tanning, spa services and lotions and other product sales.
What fees does Sun Tan City charge?
A new Sun Tan City franchisee pays a royalty of 8% of sales. A converting Sun Tan City salon pays 5% for twelve months, 6% for the next twelve and 7% from month 25. Advertising must reach 3% of sales, and the 2% national marketing fund contribution counts inside that. Royalty and the national fund, paid to the brand, come to 10% in total, with no minimum royalty and zero local advertising dollar minimum anywhere. The other 1% of the advertising requirement is spent by the salon.
What is a session worth at Sun Tan City?
On our reading, a franchised Sun Tan City salon earns $14.98 a session, dividing $627,114 of revenue by 41,856 sessions a year. Company salons run 4,240 sessions a month against 3,488, but earn $13.46 a session, 11.3% less. Every extra session a day is worth $5,468 a year at the franchised rate.
How much does a Sun Tan City franchise cost to open?
A newly built 17-bed Sun Tan City salon costs $1,078,790 to $1,797,750 to open, excluding real estate. Sun Tan City building work runs $450,000 to $800,000 and tanning and spa equipment $450,000 to $700,000, 83% of the low end between them. Working capital (cash to run the business day to day) for three months is $50,000 to $100,000, and no financing is offered.
Is the Sun Tan City territory exclusive?
The territory is expressly non-exclusive. The grant is site-specific for a single salon with a protected area of a two-mile radius. Inside it the brand keeps out both other franchises and its own salons. It is subject to stated exceptions including acquiring a business that already has a franchisee or licensee there.
How stable is the Sun Tan City system?
Sun Tan City had 156 franchised salons at the end of 2025, down from 167 two years earlier. Eleven opened in 2023 and zero in either 2024 or 2025, against eleven departures, four terminations in 2023, four in 2024. In 2025, Sun Tan City recorded three terminations and took back four salons.
Which two numbers should run monthly at Sun Tan City?
Track sessions a month against 3,488, since each one is worth $14.98 of revenue. Then track membership collections as a share of total sales against 48.1%, because that share is what turns a capital-heavy build into a predictable one.
- The filing gives no profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- The filing breaks out no cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
Questions worth putting to Sun Tan City
These are questions the Sun Tan City filing leaves open. An owner or a buyer can put them to Sun Tan City directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- Which factors does Sun Tan City see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Sun Tan City locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is a session earning you?
We review your unit economics and cash forecast and build your reporting around $14.98 for each session, the 48.1% of revenue that recurs. What a build costing more than a million dollars needs to return.
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Sun Tan City reads against the rest of the salon, lash, wax and tan group:
- Amazing Lash Studio
- Blo Blow Dry Bar
- Drybar
- European Wax Center
- GLO Tanning
- Great Clips
- Hair Success
- Hammer & Nails
- LashBar
- Lemon Tree
- OVO Salon
- Palm Beach Tan
- Sharkey’s Cuts for Kids
- Sport Clips
- The Barbershop A Hair Salon for Men
- The Lash Lounge
- Urban Waxx
- V's Barbershop
- Waxing the City
The salon, lash, wax and tan guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.
- Revenue was the highest it has been. Why did profit not move?It traces where the extra revenue went, line by line.
Where these figures come from.
Every figure here comes from STC Franchising, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses, regulatory developments described on this page are reported as matters of public record and have no view of ours on the health effects of ultraviolet tanning. This page is an educational summary and is not legal or tax advice. Sun Tan City® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: STC Franchising, LLC, 2026 Franchise Disclosure Document, issued 31 March 2026.