The Veld Group Listings: California's Largest Tan Salon Chain

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California's Largest Tan Salon Chain

Industry Description	Tan Salon Chain	SIC	7299 - 44
Days Open	7 Days / Varies	Year Established	1991
Hours of Operation	Vary ≠ 8 ≠ 9 M-F	Years Owned	1991
Full-time Employees	1 Manager	Part-time Employees	Approx. 45
Other Notes
Hours/wk by Owner	0 ≠ Non Operational	Owners Duties	Minimal Oversight
Skills / Licenses Reqπd	None	Training Offered / Cost	4 wks @ 20 hrs/wk
Non-Compete Terms	5 Yrs. / 30 Miles

Exec. Summary

Lease / Bldg. Info.	Commercial Malls	Monthly Rent	Approx. $28k; Favorable
Lease Commenced	Varies	Deposit	Varies
Lease Expires	Varies	Term & Option	Varies
Bldg./Area Description	High Traffic Malls	Square Footage	1,200 ≠ 2,200 sq. ft.
Seats, Pkg, Zoning, etc.

Reason for Sale	Owner seeks to retire.
Financial Summary	Current Yr. Annual	2003 / Owner to Prove	2002 / Owner to Prove
Gross Revenue	As prior years	$1,100,000	$1,100,000
COGS		$50,000	$48,718
Rent / CAM		$340,000
Payroll
Net Profit (before tax)		TBD	TBD
Discretionary Cash		$350,000	$330,000

Expense Breakdown

Included in Sale	Assets		Liabilities
FF&E Included	$600,000 (Approx.)	Lease Obligations	TBD - Varies.
Inventory Included	Approx. $50,000	Debt Included	$0
Other Assets Included	$0	Other Liabilities	$0
Working Capital (not incl)	TBD	Return on Sale Price

Asking Price	$1,700,000	Owner Financing/Terms	Owner Will Carry
Earnest Money Dep.	$100,000	Down Payment	TBD

Opportunity Summary

Headline

California's Largest Tan Salon Chain

Summary

This tan salon chain, touted as California's largest, offers it customers a standardized service at a low cost. The chain, which operates from nearly 10 locations and employs over 40 part-time individuals, operates high volume stores (some with more than 250 clients per day!) that run efficiently without supervision from the non-operational owner. The company has been profitable since inception and provides new owners many expansion opportunities. With gross revenues consistently over $1 million, this firm provides current management a net benefit of nearly $350,000. The owner's willingness to carry significant financing over an extended period (if properly secured) allows for a timely acquisition at favorable terms.

Facilities / Assets

Approximately 100 tanning beds are included in the sale, all full paid for. The chain's name, arguably the best in the industry, and its facility leases, which have been negotiated at extremely favorable rates, will transfer in the sale.

Competition

Competition varies by location, however, most of this chain's competitor are single tanning salons catering to the average tanning consumer. No other tanning salon chains dominate this chain's consumer market segment.

Growth Potential

This firm does not engage in regional advertising, where it may be able to achieve significant economies of scale. Further, this chain does not offer any high end tanning services (i.e. spray tan units, etc.) or actively push its retail product offering. Due to its purchasing power and significant market share, this chain is poised to achieve dramatic cost savings for any additional product or service offerings.

Other

The current owner is very agreeable to offering secured long term financing with a substantial down payment.

8721 West Sunset Blvd. • Suite 103 • Los Angeles, CA 90069 ph 310•652•VELD {8353} fx 310•652•8363 toll free 866•600• 8353 {VELD}
contact@theveldgroup.com

Opportunity Summary
Headline	California's Largest Tan Salon Chain
Summary	This tan salon chain, touted as California's largest, offers it customers a standardized service at a low cost. The chain, which operates from nearly 10 locations and employs over 40 part-time individuals, operates high volume stores (some with more than 250 clients per day!) that run efficiently without supervision from the non-operational owner. The company has been profitable since inception and provides new owners many expansion opportunities. With gross revenues consistently over $1 million, this firm provides current management a net benefit of nearly $350,000. The owner's willingness to carry significant financing over an extended period (if properly secured) allows for a timely acquisition at favorable terms.
Facilities / Assets	Approximately 100 tanning beds are included in the sale, all full paid for. The chain's name, arguably the best in the industry, and its facility leases, which have been negotiated at extremely favorable rates, will transfer in the sale.
Competition	Competition varies by location, however, most of this chain's competitor are single tanning salons catering to the average tanning consumer. No other tanning salon chains dominate this chain's consumer market segment.
Growth Potential	This firm does not engage in regional advertising, where it may be able to achieve significant economies of scale. Further, this chain does not offer any high end tanning services (i.e. spray tan units, etc.) or actively push its retail product offering. Due to its purchasing power and significant market share, this chain is poised to achieve dramatic cost savings for any additional product or service offerings.
Other	The current owner is very agreeable to offering secured long term financing with a substantial down payment.