Franchise Pick

34 opinions for Hooray for Hollywood (Tans)

• CHARLES FARRICIELLI
  Dec 23, 2007 at 11:59 pm

  HOLLYWOOD TANS IS A RIP OFF!
  Please help us! I have 5 franchise store owners who have purchased HollyWood Tans Franchise System and have been lied to and scammed, as I am! We ARE BEGINING to file a class action suit as owners!
  We really need help. This companies dishonesty regarding cash flow, profits and the deceitful business opportunity. They have taken my money (Franchise Fee of $34,000.00). April of 2006 and tell me that they will refund the fee and have not yet to this date. They have told me to LIE to the SBA about cash projections. That is when I decided that I wanted my franchise fee returned and they keep telling me that they NOW have to re-sell the territory! I have e-mail proof of the chief financial officer telling me to up the sale figures so I would obtain the SBA loan. The other franchises that I am getting statements from have verified this information and other horror stories; about this company lying to them as well. Some have already gone out of business and lost a fortune! I have kept all e-mail information as proof and have several witnesses that will verify all I have said.
  PLEASE respond and let us know how to handle this serious situation!
  also ther is already a class action suit against this company from consumers! here it is
  Hollywood Tans didn’t warn client

  By MADELAINE VITALE Staff Writer, (609) 272-7218
  Updated: Saturday, June 24, 2006

  Attorneys for a Middlesex County woman have filed a lawsuit claiming she was not given adequate warnings by Hollywood Tanning Systems Inc. about the dangers of indoor tanning.

  The suit charges the owner with “fraudulent, deceptive and otherwise improper business practices” by marketing indoor tanning to unsuspecting customers as a safe, healthy alternative to sunbathing.

  Hadis Nafar was a monthly member of Hollywood Tans from April 2005 to May 2006. Her attorneys, David J. Meiselman, Jeffrey I. Carton and Lindsay M. Held, allege in the complaint that Nafar did not receive information or warnings concerning cancer or other health risks associated with indoor tanning.

  Nafar also was not asked to sign any consent waiver relating to potential dangers.

  Hollywood Tans is the biggest indoor tanning chain in the country with 300 stores, including one in Northfield, Atlantic County.

  According to the lawsuit, the owner “knew that its misrepresentations and omissions of material fact about the safety of indoor tanning and its tanning services and machines were false and misleading.”

  Nafar’s attorneys, from the Meiselman Denlea law firm in New York, charge Hollywood Tans emphasized “the dubious claims of ‘tanning benefits’ while failing to warn customers regarding the substantial risks o f ultraviolet exposure resulting from (Hollywood Tans’) indoor tanning services and the link to skin cancer and that there is no such thing as a safe tan.”

  The plaintiff is seeking compensatory and punitive damages, a refund of fees paid to Hollywood Tans and attorney costs in the lawsuit filed this week in Middlesex County Superior Court.
  Posted on November 13, 2006 by Jerome Noll
  Nationwide Class Action Filed Against Hollywood Tans

  A recent nationwide class action initiated by Meiselman, Denlea, Packman, Carton & Eberz P.C illustrates the fact that state consumer protection statutes are powerful and flexible tools that can be utilized to protect consumers and promote pro-consumer practices. As set forth in the complaint in Hadar v. Hollywood Tanning Systems, Inc., the defendant is being sued for its failure to warn adequately its tens of thousands of indoor tanning customers about the dangers of using Hollywood Tans’ services and, in particular, about the increased risks of developing skin cancer.

  Since the increased risks are not adequately disclosed, as claimed in the class action suit, consumers who purchased indoor tanning services were not given the opportunity to make an informed purchasing decision, with all of the material information provided to them prior to purchase and use of the services.

  In addition, as the class action asserts, Hollywood Tans, along with the indoor tanning industry, in general, has engaged in marketing an indoor tan as a “safe tan” as compared to exposure to natural sunlight. So, even if a consumer generally understood the risk of sunbathing at a beach or poolside, a reasonable customer would not think that ultraviolet exposure at an indoor tanning salon was as risky, if not riskier (given the fact that many of the machines used actually deliver many times the UV amount as does natural sunlight).

  As noted in the complaint, Hollywood Tans’ website promotes the “benefits of tanning,” which, in an appeal to customers’ vanity, includes, according to defendant Hollywood Tans, the contention that customers “will look terrific” and that exposure to Hollywood Tans’ ultraviolet rays will help clear acne. In addition, Hollywood Tans further claims health benefits with respect to: psoriasis; body weight; stress; and seasonal affective disorder.

  Unfortunately for consumers, contrary to the indoor tanning industry’s claims, and as clearly stated by respected medical authorities, including the American Medical Association, the National Cancer Institute and the American Academy of Dermatology, exposure to indoor ultraviolet rays at indoor tanning salons is not “safe,” regardless of whether a consumer “tans” or “burns.”

  The class action does not seek damages for any personal injuries, but rather, is brought under the New Jersey Consumer Fraud Act (N.J.S.A 56: 8-1) for, among other things, restitution of the amounts paid by customers for indoor tanning services that were sold to them without proper and adequate warnings and information in violation of the New Jersey Consumer Fraud Act.

  Please feel free to comment about the case and, in particular, your experiences with indoor tanning companies. In your opinion, do any of them actually warn customers and tell them that any exposure to indoor ultraviolet rays is risky?

  Thanks you so much, warmest regards,
  Charles Farricielli

• sean
  Dec 24, 2007 at 5:48 am

  Charles:
  Your citing this ridiculous and opportunistic lawsuit certainly doesn’t help establish your credibility. A woman goes in to an indoor tanning salon, pays for tanning services, then turns around and sues the company because their website says indoor tanning is safer than tanning in sunlight? Come on.
  And you were ready to invest over $200K to become a tanning salon owner, you couldn’t get funding, and now you think tanning salon owners should be sued for millions because tanning isn’t safe?
  The HT system is designed to automatically prevent members from over-tanning, and regulates the time they can tan within a 24 hour period. And there’s no shortage of online info or debates the health effects of tanning. Should every Hollywood Tans franchise owner close down, liquidate their assets and distribute the proceeds to the lawyers of frivolous lawsuit funds? This lawsuit sets a precedent that could threaten owners of ALL tanning salons and equipment manufacturers. It’s not designed to protect consumers, just to extort money from a legitimate company and its franchisees.
  Charles, I don’t know whether you’ve got a legitimate complaint with Hollywood Tans or not, but the credibility of your argument would be stronger if you didn’t start out praising a lawsuit of a woman who disregards personal responsibility and seems willing to make any ridiculous claim to extract money from a company.
  As to your situation, you signed a franchise agreement, but were unable to secure funding? HT said they would refund all or part of your franchise fee, but they haven’t? Is that correct? Specifically, how have you been “have been lied to and scammed” by Hollywood Tans?

• CHARLES FARRICIELLI
  Dec 24, 2007 at 7:20 am

  Hello Sean,
  I’m sorry that you are having a hard time realizing my ridiculous claim! HT has not refunded any portion of my fee! I will not get into details as of yet. I can prove all of my allegations with hard evidence that we will use in a court of law. Before I answer any of your questions let me ask you a few. Are you a HT franchise owner? Do you have any association with the HT? Do you know of any HT owners that have had great success? Hey Sean, put you money where your mouth is! Would you like to buy my territory for a deal? Would you like to buy a fully operating salon for half price? I am about to request many HT owners to post to this site after the Holidays. Have a Merry Christmas Sean. I will be visiting with family today and tomorrow!

• sean
  Dec 24, 2007 at 9:55 am

  Charles:
  Take a deep breath. I didn’t say your claim was ridiculous. You didn’t give enough information to determine that.
  What are the terms of your agreement? What did you agree to in the franchise agreement in the event that you couldn’t obtain financing?
  No, I am not a HT franchise owner. They are not a current client, but I’ve consulted with them in the past. I have visited their home office, met their staff, attended their Discovery Day, and spoken to a number of a number of franchise owners. Franchise owners I spoke to told many positive stories about founder Ralph Venuto and his dedication to the success of his franchise owners. The head of franchising was a current franchisee himself, as were most of the upper management. We have had unsolicited positive comments left on FranchisePick.com by Hollywood Tans franchise owners.
  I have not spoken with HT since the company was sold to Jenny Craig earlier this year. The new VP of Development is a solid, ethical guy I’ve worked with in several companies in the past.
  That being said, the purpose of this site is to promote fairness in franchising, If you have a legitimate complaint, you are free to express it here. I will be glad to give you unbiased advice on the best way to resolve your complaint, based on 20 years of franchise experience.
  Tip #1: If you have a legitimate complaint, state your complaint, not the complaint of a frivolous litigant. Doing that hurts your credibility.
  Tip #2: Stick to the facts. By making wild accusations you open yourself up to libel and slander claims, which can cost you more than your franchise fee. Be sure you can prove statements that you were “lied to,” “scammed,” etc.
  Tip #3: Rethink your litigation threats. Franchise disclosure documents are heavily weighted in favor of franchisors. Do you really have the financial wherewithal to go up against the legal departments and law firms of Jenny Craig & Hollywood Tans? Threatening litigation is not in your best interest at this point, in my opinion. If they just “turn it over to the lawyers,” you lose.
  Tip #4: Try to resolve the matter peacefully. Legit franchise companies do not build their businesses by cheating people out of their franchise fees. Their money is made on the ongoing royalties and, in HT’s case, providing the equipment they manufacture. They cannot recognize the franchise fee as revenue until they can prove they’ve earned it.

• CHARLES FARRICIELLI
  Dec 24, 2007 at 11:40 am

  Thank you so much Sean! I appreciate your new comments. I will answer and detail all accusations after the Christmas holiday.You too Sean, have a great holiday!

• sean
  Dec 24, 2007 at 2:50 pm

  Happy Holidays to you and your family.

• CHARLES FARRICIELLI
  Dec 28, 2007 at 3:31 pm

  Hello Sean,
  I THOUGHT THAT I WOULD POST THIS HERE TO ANSWER SOME OF YOUR QUESTIONS AND CONCERNS AS WELL!
  Thank you again for your genuine comments. I have been extremely frustrated with the HT lack of communication. I do believe that HT has not considered nor taken any time to at least listen to all the facts here! I also trust that they do not take the time to support their present salon owners. My contentions can be confirmed by several present and past HT salon owners. HT seems to be more interested in building their franchise store base then in helping those that represent their company.
  HT did in fact make representations about profits and cash flow before we signed our franchise agreements. I was told to send a franchise deposit fee as soon as possible because there were other customers very interested in my area! So we sent them their $34,500.00 franchise fee. I was told not to worry about SBA funding because HT had a company that was familiar with their company. I was told not to worry about the franchise fee it would be returned if we didn’t secure funds from SBA.I then began my cash flow projections. I went to other salon owner and acquired their present and past sales figures, overhead. I utilized the actual figures with a 10% increase in sales every year. They were horrible not profitable! I sent the sales figures via email to the CFO before I sent them to SBA. The CFO emailed me and calculatingly said to UP the sales figures because SBA would not fund me with this projection! Yes! I did believe that this would be lying to SBA and dishonest! And imprudent on my part to buy into a non profitable business! At that time I realized that HT would not be a company that I could work with. I had a partner who then backed out of the partnership, and I asked for my franchise fee back. The franchise operations manager said not to worry HT has never been know to keep a franchise fee. I was never told that they would have to re-sell the territory before they would consider giving my hard earned money back minus their numerous fees! I have been waiting ever since. Going on two years! I do remember signing a statement that the franchise fee was non-refundable but only if funds were not secured for outside sources. I was told not to worry about signing that. I have the email proof.
  HT never secured a lease nor spent any money for my North Haven Ct location!
  Has anything changed since the new owners have taken over? NO! I have made many attempts to speak with the new management and new owners but I never received any communication. I did recently receive a cold certified letter reiterating the old companies stand.
  Hopefully this details my situation, but not the existing HT salon owner’s state of affairs! I will continue to contest for them as well as myself.
  Oh by the way, I understand that HT closed on another CT. salon, yesterday. Branford Ct is CLOSED down! He opened the salon not even one year ago! He also lost his initial investment over $250,000.00!
  I will continue to update!

• Dottie
  Dec 30, 2007 at 12:53 pm

  You might want to check the tanning industry forums like, tantalk.com, uvtalk.com, tanformation.com and tantoday.com to find more people who have been there — done that. This is not the first instance of Franchisors being less than honest in the tanning industry and sadly, they won’t be the last.

• CHARLES FARRICIELLI
  Dec 30, 2007 at 10:20 pm

  Thank you so much Dottie! We really need all the advice we can get. I will check all that you have requested, So Much appreciated!
  Charlie

• Megan
  Jan 10, 2008 at 9:24 pm

  Hi everyone,
  I am 20 years old and majoring in buisness. I was planning on opening up a tanning salon and looking into franchise opportunities with Hollywood Tans. Any advice?

• CHARLES FARRICIELLI
  Jan 11, 2008 at 11:18 am

  Dear Megan,
  YES! We do have advice. And this pertains to any national franchise as well.
  Simply start with intense “due diligence”! Integrity of the company and its management team is most important. Study the franchise agreement; study the franchise and take it to a specialized Attorney who may be familiar with franchise law. Take your time with decision conclusions and don’t have the franchise sales person allow you to think that this is a once in a lifetime opportunity. Don’t rush into an agreement! Study the demographics in your anticipated geographical area, and the details that pertain to your specialized tanning business. Search the internet for any complaints grievances pertaining to the franchise company. The Better Business agency will have information as well. Remember this, Franchise agreements need to protect your rights, and not just the franchise itself. Before entering into agreement to purchase any franchise, consult a franchise lawyer first to look over the agreement to make sure you’re getting a fair shake. Also ask, what are their policies for financing for their advertising costs per month!!! How much are they! This expense can really hurt your bottom line. Does the company offer in house financing?

  And last and MOST IMPORTANT, Call at least 30 to 40 existing salon owners and simply ask how they are doing. Do they benefit from the franchise companies customer service, policies, and has the company helped with their business with integrity to help make them successful! You may be surprised just by completing this alone. Start in the areas that you plan you salon Ct, New Jersey, or where ever you plan to open. What better way to receive current information and shelter you huge investment!

  Also Megan, go check out all the tanning sites, http://www.tantalk , http://www.tantoday and others, and find out how the tanning industry is doing from real live salon owners as they blog their comments daily!

  Do not listen to the sales pitch from the franchise management! They are only there to make a sale! Do not listen to any type of their claims for sales projections or future profits that they may be alleging that other franchises are producing. Never give the company a franchise fee deposit until you are 110% sure that this is where you will want to spend your future!

  I am also aware of many closings where the franchisee lost everything! So please follow the wisdom and information that you obtain and most of all follow your heart!

  One of the very best checklists I have seen for evaluating a franchise opportunity is produced by the Illinois Attorney General, see:
  http://www.illinoisattorneygeneral.gov/publications/pdf/b4ubuy.pdf

  The document is over 35 pages long, and has some great warning tips: if you hear certain phrases being used by the franchise salesman or brokers, beware. These tips alone are worth the read. But the real value of checklist is that the AG has linked questions about the franchise to the areas in the UFCO where those answers can be found.

  Here is a Brief Summary

  Section A asks you to evaluate your own abilities. This section covers the usual questions that a prospective franchisee should ask themselves, but includes a delightful red flag warning, which everyone should read.

  Section B poses some standard questions that you should ask about the industry. But the last question in this section is important: did you consider starting a new business as opposed to starting a new business.

  Section C is great section giving you tips on how to evaluate your franchisor, highlighting various spots in the UFOC to look for this information.

  Section D provides a number of good questions to ask previous franchisees.

  The next division deals with how to understand your contract.

  Section A is gives you very specific questions to ask about where your money is going.

  Section B deals with how you evaluate the franchisor’s ability to meet its obligations. Very important for a prospective franchisee to read.

  Section C discusses how you to get the best location advice.

  Section D gives you very good advice about the franchise territory.

  Section E is an excellent discussion of what questions you should ask about how the franchisor uses the advertising fund.

  Section F talks about how to evaluate the training that you are going to receive.

  Section G gives you some insight into earnings claims made by franchisors.

  Section H discusses issues about dispute resolution, an area often overlooked by the franchisee.

  Section I, which in my opinion should be the very first section, talks about how to plan your exist strategy: read this section first.

  These are the main sections. It is a terrific little document, free and full of useful questions to ask.

  Discover what the tanning franchises AREN’T telling you!

  What is the ONE THING you must focus on to be successful!

  What is the ONLY way to advertise! They insist that you pay a monthly fee to advertise their name!

  How you can charge more than your competitors, and be busier than them!

  What is the smartest way to open?

  What you need to know about “Big Brother” and the tanning industry!

  Why buying an existing operation can be FATAL, and when it’s brilliant!

  Buying or leasing beds? The things the leaser and seller aren’t saying.

  How to eliminate the competition in your area!

  Finding the right location isn’t just about population and traffic!

  The 110v - 220v debate (The truth might surprise you)

  Well Megan I hope this will help… Good luck with your future enterprises!

• Jamie
  Feb 4, 2008 at 7:22 pm

  Feel free to e-mail me with any questions / concerns you may have about the tanning industry and Hollywood Tans. I’ve had very positive experiences with HT and am very happy with the ROI I’ve experienced.

  I couldn’t agree more that before you even consider any business opportunity, especially a franchise, you need to do a tremendous amount of investigation. Once you establish if the business is right for you, determining where to place a business is just as crucial. Study demographics, seek out advice, find out who your potential customers are and where they’re located. Don’t choose a territory simply because that’s where you live. That’s the first mistake many franchise owners make. Instead, investigate, pour over the numbers, compare to successful locations, and don’t become pressured by a franchisor or realty broker in choosing a specific territory. Real estate is critical to your success, regardless of the industry, if you’re talking about retail sales.

  Charles, I feel for your story. I’m a franchisee, not affiliated with the franchisor, and my opinion is if somebody has paid their franchise fee but changes their mind prior to signing a lease, they should be given every opportunity to receive a refund. Same approach as with our clients… if they buy a package or membership and change their mind before tanning, we of course refund them in full. That being said, I can’t say enough about the potential returns of a well run, well located Hollywood Tans salon. It’s a fun and profitable business.

  Once again, I’m always open to questions and happy to help where I can.

  -Jamie S.
  Hollywood Tans - Atlanta
  http://www.hollywoodtansatlanta.com

• CHARLES FARRICIELLI
  Feb 6, 2008 at 2:07 pm

  Hello Jamie,
  Thank you so much for being so considerate with your statements. I still do not understand why HT will not return our $34, 5500 franchise fee. I cant figure out why they will not return my phone calls or e-mail, The company has not been honest with projections and cash flow with me nor the many other salon owners who are about to give up their stores in Ct NJ Cal all agree to this.. I have been speaking to dozens of salon owners that feel the same way that I do. HT has hurt too many salon owners and I am acuminating this proof.
  I appreciate you comments in reference to “Due Diligence” and that is way I lost my franchise fee. You see, after paying HT their franchise fee, and completing my cash flow analysis, location demographics, and overhead totals I realized that it would not work. That is when and why I immediately requested my franchise fees returned! They have never responded except to inform me they need to re-sell my geographic area. That’s funny since 2 local salons have already gone under and 3 more local stores about to close the doors. That’s just the New Haven area. How will they ever re-sell my territory?? It’s a joke! I am learning about many more states that are having a dilemma paying their bills, let alone make any sort of profit!
  Again Jamie I’m really happy that there are a few HT salons dong business but for the most part my ongoing investigation of this company will prove severely different and factual information!
  HT claims to never have closed a store? Again that is not true! Well corporate at HT recently stated that 20 stores closed in 2006. I’m sure its much more then that. How about 2005, 2007, 200 !!!
  Well Jamie I will e-mail you some detailed information that I cant post as soon as I can. Again thank you so much for your integrity and concern!

  Unfortunately it’s not much fun and profitable for the HT salon owners that I have spoke to. Try it! Make some phone calls.

  Charlie Farricielli

• Jamie S.
  Feb 13, 2008 at 6:33 pm

  I think there’s more than “a few” HT salons doing well! The reality of business is those who don’t do well are often the loudest, while those that are doing well usually like to keep to themselves about it. :) There are over 320 HT salons open around the country right now, and while I know some have struggled or are having a hard time making it work, I think any franchise business is going to have their share of franchisees who don’t make the cut (due to a variety of different reasons, ranging from location to customer service and basic business practices). This is not to say anything negative about those operators!

  I do know that at the time corporate made claims that no salons had closed, it was factual… the old owners had taken on quite a bit of financial liabilities to ensure this remained true (taking over salons that were failing, usually due to poor real estate / location, in an effort to keep them open). This doesn’t mean, obviously, that there weren’t salons that struggled. But I don’t believe I had heard of any salons shutting down until 2006 (I’ve been in the HT system since late 2002), and the 20 you quoted in 2006 sounds just about right (possibly even high). At any rate, the UFOC’s all disclose all the information you could want about existing salons shutting down, new salons opening up, new franchisees who have paid for territories but haven’t opened salons, etc. I believe that information is available to anybody who inquires about a franchise. As it’s audited by the FTC, I’d say it’s fairly reliable information. :)

  In Atlanta we’ve unfortunately had 4 salons go dark, all during 2006 - 2007. All of them were due to some of the reasons I outlined above… either poor location or poor management for the most part. Like any retail business, location is absolutely key (visibility, parking, signage, anchor, etc). My hope is that we’ll have successful franchisees down here in the future who will reopen salons in the territories where there were shut-downs, which is why I would encourage anybody who is interested in HT to do a tremendous amount of research before signing a franchise agreement, come in with realistic expectations and financial backing, and most importantly spend an adequate amount of time on researching appropriate locations before signing a lease!

  Charles, I would encourage you to e-mail me with any additional information you have. I make my livelihood with HT, have an excellent relationship with the executive leadership team at HT, and am planning on opening additional salons in the future, so getting as much information as I can get is always appreciated. Just visit my website and click the Contact Us link to shoot me an e-mail.

  Thanks,
  Jamie S.
  Hollywood Tans - Atlanta
  http://www.hollywoodtansatlanta.com

• Tanning67
  Feb 14, 2008 at 9:10 am

  Jamie how many units does your store have? How many people does the HT advertising budget of up to $2500 per month that they can charge bring in to your store? They will Always charge you at least $15-$20k per year for promoting “THE BRAND” How much monthly or local additional advertising do you do for your stores?

  Do you have any lay downs? Do you have any other stores near you. What about a Beach Bum? UWE BEDS are quiet impressive.

  How big are your Demographics within 5 miles over 100k?

  If poor location or poor management is the case then why does HT boost about total remote management, or their professional real estate team to select a location.

  The number 1 reason anyone would go with a franchise. Yet they use that to blame the franchisee whom didn’t have enough cash on hand to keep the sinking ship above water for 2 years.

  Megan, go to google and buy the indoor tanning bible. It’s about $70 you will learn more from that book then you will ever know from HT.

  Yes some HT’s make HUGES amounts of money, but can you afford a store with 20-40 units?

  I’d open a little store to start or buy one for under $100k That makes $20-$30k profit, run the store, fix it up and then in a year expand.

  Ht will cost at least $300k to get in the door and you will have to pay markups on EVERYTHING, from lotions, to bulbs, to accessories, to printing and biz cards. They make money on you… the franchisee.

  HT started years ago with a powerful booth, its now 10 years old, and add a 200watt suncapsule and you’ll do fine. I’d much rather run a business with only uncle sam in my right pocket.

  Running a Hollywood Tans is like having uncle same in one pocket Hollywood Tans in the other, and you “Keep the Change” if your store does bad, they will resell it and blame you…. “Bad Management”

  NO FRANCHISEE should fail because of a location if the franchiser has a real estate team especially when they want you to Pay a Fee of over $30k to join them for their support.

  ALL YOU ARE WITH A HOLLYWOOD TANS OR ANY FRANCHISE is on onsite manager… for them.

  Megan call Highland Capital and just say you are a Hollywood Tans Franchisee and see if they would loan you money…

  Megan tanning is a local Business… If you run a clean, bright fun place, you will succeed. And at the end of the day, you are the true owner…

  If you Dont Believe me go to the Hollywood Tans website and click on locations. Call 10-20 stores and ask to speak to the owner.

  Better Yet Call the Ten connecticut stores from that list. They let you know about Their bad Management.

  Simply ask them how they feel about their investment, would they buy another, do they think they get cheap prices….

  Its worth your time and you’ll save A LOT OF MONEY.

  The only Bad management with a Hollywood Tans is Hollywood Tans

• Tanning67
  Feb 14, 2008 at 9:29 am

  Jamie…. The FTC doesnt even look into UFOC’s, its required that the cover page be inserted.

  Sean Great Point…. I’ve Heard that the UFOC states that franchises cant sue on a joint basis, or join together to fight the Franchiser in this case. So its lonely you vs… HT… and they know it…

  Tip #3: Rethink your litigation threats. Franchise disclosure documents are heavily weighted in favor of franchisors. Do you really have the financial wherewithal to go up against the legal departments and law firms of Jenny Craig & Hollywood Tans? Threatening litigation is not in your best interest at this point, in my opinion. If they just “turn it over to the lawyers,” you lose.

• Tanning67
  Feb 14, 2008 at 9:31 am

  In my opinion, If I were a franchise and HT was putting my into bankrupty, I’d blow the whisle… Let them sue lol…

  “Rocky Five Qoute” Sue me for What….

• Tanning67
  Feb 14, 2008 at 9:50 am

  Sean

  Do you get paid for your post? They seem to favor the franchisors. In This Case Hollywood Tans

  Thanks
  John

• Tanning67
  Feb 14, 2008 at 1:17 pm

  I have a comment for Jamie S. If your stores do so well tanning, why rent them after hours?

• sean
  Feb 15, 2008 at 6:10 am

  John/Tanning 67 asked: Sean Do you get paid for your post? They seem to favor the franchisors.

  No, I don’t get paid to post.
  For franchising to work as it should, the relationship needs to be win-win-win for customers, franchisees and franchisor. I don’t “favor” franchisors or franchisees - I favor franchise systems that work. Read through this site and you’ll see many, many posts scrutinizing franchisors.
  In this particular case, I have toured the HQ, multiple salons, spoke to many franchise owners and corporate staff members, and spent time on several occasions with the founder, Ralph Venuto, Sr.. I recommended the HT to the editor of Franchise Times and a reporter from the Wall Street Journal. Both investigated and wrote stories on HT and both came away impressed, as did I. This was surprising because I had previously dismissed the tanning industry as a scam-ridden fad. I haven’t had any contact with them since they were purchased by Jenny Craig last year, but I know and respect their new director of franchise development.

  That’s my story. What’s yours, John?

• sean
  Feb 15, 2008 at 6:47 am

  John/Tanning67:
  Please post under a single name that’s not being used in the same thread, please. I changed your posts as “John” “Jamie” “Jamie & Sean” to Tanning67 because it was getting confusing. I think you meant to post TO Jamie but not AS Jamie. If you want a different name, let me know.

  Thanks, Sean
  Proprietor, FranchisePick.com

  PS What’s your relationship with HT? Competitor?

• Jamie S.
  Feb 15, 2008 at 8:03 am

  John / Tanning67,

  Franchising isn’t for everybody. If somebody is content with spending $100k on an independent small salon and making $20k - $30k a year in profit, I’d encourage them to go for it! Since you haven’t disclosed anything about who you are, I’m not sure if you’ve gone this route or are considering it, whether you’re in the tanning industry or are just knowledgable about it. Personally, I love owning my own business, and would encourage others with similar aspirations of business ownership to weight the pros and cons and pursue their dreams if it makes fiscal sense, whether it’s with HT, another franchise, or an independent business. I won’t debate the merits of owning anything other than an HT salon as these are the only businesses I’ve ever owned. I obviously have a very good idea of the exact overhead costs associated with owning a tanning salon, HT or independent or otherwise, and therefore have a pretty good idea of the revenue stream necessary to be a profitable business in this industry.

  HT’s business model, including the initial investment, is on a very different scale from the hypothetical $100k investment you’ve mentioned. As I’ve said in an earlier post, I’m very happy with the ROI I’ve seen from this investment these past 5 years, and that includes the return I’ve received on advertising. If shared co-op advertising charges aren’t for you, if you have a problem with paying royalties or other franchise related expenses, if you see those as “HT taking out of your pocket” instead of an investment in your own business’ growth, then by all means don’t invest in a franchise! It’s definitely not for everybody, as I’m sure you’ll see if you look at the other posts around this site Sean mentioned.

  BTW, just to clear up a misconception repeated by John and Sean, Hollywood Tans, LLC isn’t owned by Jenny Craig. It was purchased last year from the Venuto family by ACI Capital, a private investment firm, which at one point owned Jenny Craig (and I believe sold it to Nestle several years ago). Since their claim to fame in the public’s eye is growing Jenny Craig into one of the largest such businesses in its industry, that’s probably where the confusion came in that Jenny Craig bought HT, not ACI. You can read all about it on their site, http://www.acicapital.com.

  I’m not sure how to respond to the rest of your questions / comments, John / Tanning67. The details of the equipment in my salon are on my website. I can say that I personally don’t recommend remote management, but I do have a number of friends and fellow HT franchisees in different markets who run their salons remotely, and do quite well. I’m far too hands-on (read controlling!) for that, so I guess it depends largely on your personality.

  Hope that helps.

  Thanks,

  Jamie S.
  Hollywood Tans - Atlanta
  http://www.hollywoodtansatlanta.com

• John
  Feb 15, 2008 at 9:19 am

  Sorry, Sean I messed up on that post but thank you for fixing them for me.

  Sean - You nailed the ideal franchise relationship on the head. It should be win-win-win. customer-franchisee-franchisor

  I’m not an owner just heard some horror stories from a friend in the business and looked into it more. I even heard a claim that they charge upwards of $60 for 500 business cards. Just my friend was mislead like charlie up above, and figured that their high royalties of 7% covered their markups. Not the case with HT from what I hear.

  Sean - You seem like a very wise person, why don’t you do a followup to your HT coverage and call some other store owners, like stores in CT, LA area of California as well as newer NJ Stores, and some mid west stores. Also with only a little more then 320 stores why are there comments about them running radio ads in states with no HT on the sites mentioned above like tantalk.com. It Seems like they use the franchisees co-op money to co-op more franchisees and less customers… With the amount of money they spend in adverting per month, they could pay 100,000 people $10 bucks to walk in the store.

  Jamie, I thank you for being honest. I agree that remote management is difficult with any business and I also noticed that you seem to have the Atlanta area locked up with HT. Might you say thats why you do well?

  Also Megan shouldn’t be happy only making $20-$30k with her one store, but when she expands to 3 stores, she will have 3 stores bringing in $60k-$90k (profit) then with that setup right as a business, she could use her company car and other tax relate issues to lower that amount.
  And her risk at first would be less then $100k, not in excess of $300k with a store she could see the books, and have access to their customer list make a good business descision first, and not filter out the BS

  With Megan and her own stores she would pay her bills first then taxes. A true business owner.

  With HT they made my friend pay them first on top of everything..(7% roy) even on top of the markups they had on they products he sold. Talk about an “HT Double Dip”. That sounds like an employee to me… pay taxes first then deduct expenses. So jamie yes you run 3-4 locations. But you are a great manager to HT, which is why they like you.

  Jamie I hope you open your eyes one day and see that the hand that feeds you, may not be so friendly in the end. And if your stores are profitable, please save some money for a raining day. Ever hear of Enron..

  With a franchise you are the test case for the franchisor in a new location, or the person, buying the resold store… “with bad Management” until the company can turn the location over. Also a corporate store and franchisee store are two different beast. One pays the extras the other doesn’t. So a non-profitable store to a franchisee, will become profitable to the franchisor once they take it over or buy it from you for pennies on the dollar. Since they would most likly have a first right of refuse clause, so a store lossing money isnt worth much to a wise business owner.

  Sean and Jamie - Don’t you think that if the old owners knew of a hot location in nj they would have kept it forthemselves…. How else would they at one point have owned upwards of 20-30 locations near philly/s.nj

  And isnt it a lot cheaper for a frachisor to setup a store. less equipment fees.

  Sean - If you came to my company to write an article I’d kiss your butt as well and I’d be really really nice to you. And point out all the good that we do. Did you ask for a copy of their UFOC? And did you read it? I’d like to see what it says. Or did you go there as if you were to buy a store.

  Whats really funny is that HT made my friend buy all stand-ups. Yet the family stores have lay-downs in them. Now isn’t that a conflict of interest since HT builds their own equipment which they profit from when they sell it to franchisees whom are taking all the risk up front.

  I’d love to find out the average time an HT gets “flipped” or how many owners have been in and out of that company.

  In charlie’s defense, even if he decided to back out for a valid reason. What company would keep the fee. In my opinion they would have been better to return his money. But when greed kicks in and you want to drive that pretty bentley (Sean did you see that bentley SR. drives with part of charlie’s money)

  Sometimes roses aren’t always as pretty as they appear to be… you have to watch out for the thorns hidden below the pedals…

• CHARLES FARRICIELLI
  Feb 15, 2008 at 3:09 pm

  Hello Tanning67

  Very well said!

  I guess the non-believers of the specifics laid out in the past postings, just simply don’t get it! I am suggesting for the un-believers to take your challenge! Call the salon owners in CT, in NJ. I have, and I can prove that HT is going to pay for their underhanded corporate ethics. These salon owners are hurting! I will continue to fight corporate and help these HT franchises win!
  Again thank you for you comments tanning 67

• sean
  Feb 15, 2008 at 4:49 pm

  Jamie: Thanks for the clarification about the new owner being ACI Capital, former owner of Jenny Craig. Thanks, also, for providing a balanced, HT owner’s perspective.

  I’ll often do a positive post on a franchise to see if franchisees appear to object. Take a look at a few of the posts listed here:
  Most Controversial Franchise Posts 2007
  Fitness Club Franchise Posts
  eBay Drop-off Store Franchise Posts
  Unhappy franchise owners are not shy about posting here. It’s significant that the only detractors of HT posting here are not franchise owners. Charles backed out and John/Tanning67 hasn’t disclosed his relationship, but he’s likely an unhappy competitor… Beach Bum, perhaps? Both claim to have unhappy HT franchisee friends… but why aren’t they here, speaking for themselves? Why aren’t there lawsuits from all these unhappy owners?

  John, I’ve been in franchising for close to 20 years, on both sides of the fence, and worked with hundreds of companies. I may not have seen it all, but I’ve seen a lot… and am not easily impressed nor scammed. I’m not saying HT is God’s gift to entrepreneurism, but I will say that I came in very skeptical and was pleasantly surprised by what I found.
  I don’t find your allegations too compelling. I explained above why most FRs wouldn’t give Charles his FF back, even if they wanted to. The salons owned by family members and employees had stand-up units just the same as the franchise units, at least that I saw. No franchisees I spoke to had a problem with the radio or ad spends, and the franchise marketing funds were carefully separate and tracked. The remote management technology was impressive enough to be covered by the tech writers at WSJ and CNBC.
  And yes, John, I was one of the first to ride in the Bentley SR (way overrated, in my opinion). $200K+ cars and past involvement in the transmission business always raise my skepticism and BS-detector. But I met person after person who recounted personal stories of how Ralph Venuto, Sr. helped them acheive their dreams of owning and operating their own businesses, and how he helped others when they were in trouble. I met a lot of people grateful and loyal to him.
  But the Venutos no longer own Hollywood Tans and a lot of things, no doubt, will change and become more corporate. John and Charles, you both seem pretty bitter against a company you’re not involved with, and against owners who are no longer involved. Why not put together a better, more ethical program and show them how it should be done? Use that passion to create the best, most ethical tanning chain ever. You might even get your own Bentley out of the deal!

• CHARLES FARRICIELLI
  Feb 16, 2008 at 5:45 pm

  Dear Sean,
  I am really regretful that you have taken such a hard stand in opposition to the hard working frustrated salon owners of Hollywood Tans. It seems that you are extremely diligent on not placing any effort to appreciate what is going on here. Your statement in regards to allegations not being compelling is extremely exasperating. Do you understand that there are much more then several salon owners that were considering that Hollywood Tans Franchise system and so called expertise would help their company to be profitable? Well guess what my friend they are not! Do you understand that you are speaking about assumptions and not real fact. I had challenged you to make a few phone calls. Take some time and create some due diligence for the other side. Instead of consistently protecting a company that doesn’t need your approval, why not take the time to actually explore the allegations. Simply call the Salon owners. Call Connecticut. Call New Jersey. I will guarantee you that you will find out that we are communication factual truth here for the benefit of the HT salon owners.
  As far as you making another hypothesis that I should have know better that Hollywood Tans would unjustly keep my hard earned $34,500.00 franchise fee as I didn’t do my due diligence, well that is regrettably not true!
  I did my due diligence and realized that this company was attempting to deceive me into representing them as a franchise! HT picked the location! HT told me what my overhead would be! HT then asked me in writing to counterfeit my sale figures to the SBA! Would you have wanted to continue? I simply asked for my money back. After all HT did nothing for that money. And think about it Sean. If HT was such a majestic company as you have affirmed over and over in your presupposed posts, then where is the integrity of this grand company for simply returning my franchise fee. Where is the uprightness of your so called prominent company to take the time for listening and serving their hurting non profitable franchisees?
  So Sean, make some calls then let’s hear your fact finding comments after you have given the other side “the franchisee” a reasonable explanation of your observations.

• sean
  Feb 17, 2008 at 9:46 am

  …you have taken such a hard stand in opposition to the hard working frustrated salon owners of Hollywood Tans
  Charles, you’re not an HT franchise owner. Neither is John. The franchisee comments here have been positive.

  As far as you making another hypothesis that I should have know better that Hollywood Tans would unjustly keep my hard earned $34,500.00 franchise fee as I didn’t do my due diligence, well that is regrettably not true!… I did my due diligence
  Charles, you constantly contradict yourself. First you say a few phone calls to franchisees will show how bad HT is. Then you say you did your due diligence but obviously saw no warning signs because you signed up. Which is it? Didn’t you call the franchisees in NJ before you signed up?

  HT picked the location! HT told me what my overhead would be! Then: HT did nothing for that money.
  Another contradiction. They spent time with you. Met with you. Found a location for you. Negotiated the lease terms. Put together costs and overhead projections. But then you say they did nothing?
  You and John also completely disregarded my explanation for the legal reasons not to break the contract & refund you. Doing so could be circumventing franchise laws if people could sign an agreement, but could change their minds once internal info is disclosed.

  In addition to contradictions, you also exaggerate and distort. When did I ever use these descriptions of the company: …majestic company as you have affirmed over and over… this grand company… so called prominent company…

  Charles, I don’t have to call franchisees. I have. I’ve toured salons in NJ & PA. Interviewed franchisees across the country. Toured the home office. Attended Discovery Day. I came to the same conclusion you did when you decided to sign up as a franchisee: pretty good opportunity.

  You signed a legal agreement and paid a non-refundable fee. I’m sure if you had a legal right to a refund you’d be settling this in court, not here. But I suspect that the legal agreement is as clear cut as your claims of fraud are murky.

  Charles, I’m not attacking you. I feel bad whenever I see people get expensive lessons - as we all have. But that’s what it seems to me: An expensive lesson. You can move on, or you can keep raging at the dark night.

• CHARLES
  Feb 17, 2008 at 12:27 pm

  Ok Sean! I’m right!
  You must have some obscured position with HT. Just the fact that you take the time to maintain protecting this company informs all of us that you are in fact biased.
  You are taking my words and forming them for the companies benefit! I will not respond to any more of YOUR posts. I will continue to post the facts as I learn more negative details about this company!
  Responding to your mockery and suspicious posts I will say that the franchisees will begin to post their complaints on this site as of now! I will let them know that we need their stories and particulars! John and Tanning 67 made several supportive and factual comments and you rejected them all.
  Answer to second question. No! I did not call any franchisees before I paid my fee. Wish I did! I did my do diligences with a company that I thought was real and integral. I wish I had made the phone calls. That is the reason why I am posting this information so to help any future unsuspecting franchisees to do what I did not do! The phone calls I made were to franchisees that your HT gave me to call. What kind of bull is this! Another contradiction? HT never met with me. HT never spent any time or effort or money negotiating any terms, signing any leases! I paid them. HT did nothing but keep my money! I put together the financial projections that they wanted me to falsify with their numbers!
  So Sean, please withdraw your bizarre favoritism and “presupposed comments”. How do you know so much about the internal legal system of HT if you are not in bed with them! You say “pretty good opportunity”? Why are you not a salon owner? If not, you have no business commenting your assumptions, you fiction, nothing to do with actuality on this post! And I would appreciate if you stop advising me and the salon owners. We all have our own legal council and advise.

• sean
  Feb 17, 2008 at 4:30 pm

  Charles:
  Calm down. I am not mocking you. I am just voicing my opinion. If I were “in bed” with the company, your comments and allegations never would have appeared here in the first place. I have provided you with an open forum where you are free to voice your opinions without censorship… and where I and anyone else is free to agree, disagree or not read them. I have read what you’ve written carefully. I just disagree with you, that’s all.
  This is America, Charles. It’s OK to disagree.
  I’m not “taking” your words “and forming them for the companies benefit!” Your words are intact. I’m using direct quotes to respond to your exact allegations. I’d suggest you do the same instead of distorting what I say and then attacking your own distortions. I never said the company was “majestic” or “grand” as you state. Why should I have to defend against what I didn’t say? Why don’t you respond to what I actually wrote? It will help your credibility.
  Have you spoken to an attorney about getting your franchise fee returned? If so, what did he/she tell you?
  If there’s a bright side: I appreciate your sharing your experience and lesson with the readers of this site who may be investigating franchise or other business opportunities. You make an important point: If you sign a contract and agree to a nonrefundable deposit, you will not get that money returned in the event you change your mind. Buyer Beware.

• sean
  Feb 17, 2008 at 5:34 pm

  Charles: I just ran across your rant on Rip-Off Report. Now I’m really confused.

  On 12/24/07 you wrote:
  “We are presently working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.”

  Then, on 1/2/08 you wrote:
  “We have not retained counsel from Meiselman, Denlea, Packman, Carton & Eberz, P.C. or any other Attorneys as of yet!”

  You also said on ROR that you had a partner that backed out of the deal. You acknowledged signing and agreement that said you could get your money back when they sold your territory, which they have agreed to do.

  This gets crazier and crazier. How do you expect them to sell your territory when you are telling people not to buy the franchise? Isn’t that a bit self-defeating?

• CHARLES
  Feb 17, 2008 at 6:23 pm

  Sean,
  We thank you for the opportunity to post factual negative testimony on your site! As you put it “Let the Buyer Beware”!

  Let the buyer beware of Hollywood Tans Franchise!

  As I mentioned above I will not continue to comment on any more of your personal unethical harass, unbiased remarks, or implicit allegations!

  All I can recognize from all your previous commentary is your “bizarre favoritism” for The Hollywood Tans Company!

• sean
  Feb 17, 2008 at 10:36 pm

  Take Care, Charles. Sorry if I upset you. Like I said… we just have different impressions of the company. Hopefully they’ll sell your territory and you’ll get your franchise fee returned.

  Incidentally, http://www.rosefarm.com is a nice site and looks like a good business. I wish I had seen it before Valentine’s Day. Anyway… Best of luck with that and all future endeavors.

• Owned
  Feb 27, 2008 at 7:50 pm

  Charles - btw - i agree with you 100%

• CHARLES
  Feb 27, 2008 at 11:07 pm

  Thanks for the comment Owned!

  By the way an update from Ct. ANOTHER Hollywood Tans has been closed this week. West Hartford Ct Closed the Doors on Monday! Also two Ct Salons Up for Sale. Any one need a Hollywood Tans?
  More to come Im sure! I will keep you posted!

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