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Jason Rager is President of Franchise Analyzer.

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Saturday
Jan302010

Celsius Tannery Franchise

Tanning salons

Currently based in the Kansas City area, Celsius Tannery recently signed an agreement with Wal-Mart to open franchised salons in Wal-Marts across the country.

Start-up Costs & Franchises Fees

What is the total cost to open a Celsius Tannery Franchises?

Total Cost: $265,000 USD -$598,500
Total Franchise Fees: $20,000 USD
Ongoing Royalty Fees: 1%
Ongoing Advertising Fees:
Term of Agreement: 5 years
Franchise Agreement Renewal Fee: $4K

Contact Information for Celsius Tannery

Celsius Tannery
12142 State Line Rd.
Leawood, KS
66223

Phone Number: (913)451-7000
Toll Free: (866)826-7400
Fax Number: (913)451-7001

Franchise Homepage:

Historical Expansion

In what year did Celsius Tannery begin operations? 1995
When did Celsius Tannery begin selling franchises? 2000

Year United States Canada International Corporate
2003 19 0 0 3
2002 14 0 0 4
2001 12 0 0 5
2000 0 0 0 3
1999 Not Available Not Available Not Available 3

Franchise Financing Information

Cost In House Financing Available? 3rd Party Financing Available?
Franchise Fee No No
Initial Start-up Capital No No
Plant, Property, and Equipment No Yes
Inventory No No
Accounts Receivable No No
Payroll No No

Training & Support

Support
Meetings, Toll free phone number, Grand opening support, Internet referrals, Safety and Security procedures, Field support and site evaluation, Purchasing cooperatives
Marketing
Cooperative advertising, Ad slicks, National media, Regional advertising support

Franchise Operation Restrictions

30% of all franchise business owners own more than one franchise location.

Number of employees needed to run franchised unit: 8 - 15

Absentee ownership of franchise is allowed.

Jason Rager's Inside Information

Can you buy this franchise for no money down? Yes
What key terms in the franchise agreement can be negotiated? Cross-default provisions, arbitration clause, personal guarantee, default cure periods, non-compete agreement, favorable valuations for corporate buyout
Can you negotiate lower royalties during start-up? Yes
Can you purchase multiple franchises for a discounted franchise fee? Yes
Can you receive lower advertising fees? Yes
Will I know when the franchise break even? Yes
Will my personal assets including my home be safe in case my franchise business fails? Yes
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