| Finance
a Tanning Salon Franchise Before you seek your franchise
financing you will want to have a clear estimate for the total amount you will
need to borrow for your new venture. The following categories should help you
to put together a realistic financing estimate.
Location Related Expenses
Property Leases for your
tanning franchise, security deposits, monthly lease fees. Purchasing a property
include the facility and any land associated with the property combined with yearly
taxes. Utilities costs, deposits, signage and licenses. Any renovation costs or
site modification costs.
Equipment
What are the total equipment costs to get your franchise up and running?
How much do the tanning beds cost, air conditioning unit and fans?
Operating
(Working) Capital Typically the tanning franchise
company will require a certain amount from you.
Interior Decorations
Costs associated with revamping
your tanning franchise location's interior and getting it up to franchise standards
with the necessary colors, look and fixtures.
Inventory
How much inventory will you need to keep
on hand (lotions, stickers, googles)? What are the costs associated with this
inventory? Ask your frachise provider what you'll require in this area.
Insurance
Insurance
is required for your franchise location (property location), worker's compensation,
liability, casualty, auto insurance etc.. Depending on your business this fee
can have quite a range.
Education
Many times
training is provided for you through your franchise arrangements and you may not
need to count this a second time for your financing. However in some cases you
may wish to get additional training for computer use or skills required that the
franchise may assume you already have.
Labor and Training
You
will need to cover labor costs for employees on a monthly basis which may begin
before you even open your doors. You might have to spend to train your employees
or invest your own time getting them started.
Zoning Expenses
and Consulting
If the location you've chosen for your tanning salon
franchise has not had a business like yours in the past you might incurr zoning
expenses. You may also incurr consulting fees to help you navigate the zoning
regulations to get your franchise location approved.
Franchise
Fees
Thes fees can vary depending on the tanning bed franchise
you choose.
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