Executive Tans Completes A Multi-faceted Solution For Salon Ownership

Indoor Tanning Franchise Offers Flexible Franchising Opportunities to Continue National Growth

LAKEWOOD, COLORADO (Thursday, January 15, 2004) - Capitalizing on the growth of the indoor tanning industry, Executive Tans, the nation's fastest growing indoor tanning franchise, is successfully attracting franchisees on three separate levels, nationwide. Approaching the franchise concept differently than its competitors, Executive Tans is seeing an increased growth and continued success as a "Flexible Franchisor".

With 70 salons open throughout 21 markets and an additional 35 under development, Executive Tans has carved a niche with its professional and upscale facility and highly-trained and educated franchisees. Executive Tans is targeting three types of franchisees, captivating them all with explosive growth potential.

Turn-key Franchisee

Individuals interested in franchising may look to a franchise system that has extreme growth potential, average start-up costs and incredible previous successes. In only two years, Executive Tans has tripled its units and boosted total sales from approximately $1 million in 2000 to more than $13 million in 2003.

Although the individual (or group of investors) may be starting from scratch, they will not be doing it alone. Executive Tans works with its franchisees in site selection, construction, equipment sourcing, retail purchasing and marketing. This is all before the salon opens.

"We like to aid our franchisees in each step of the process," said Tom Stemple, COO of Executive Tans. "For some people, this is their first foray into franchising and it can be nerve-wrecking. By providing each franchisee with personalized attention, training and support, we can ensure that they will deliver only the highest quality service to our clients."

This type of franchising is the most cost-intensive, as the franchisee is basically starting from scratch. The overall investment can be as little as $100,000 depending on which level salon a franchisee decides to open. Unlike all other franchises in the industry; who take a percentage of the monthly sales for each salon, Executive Tans takes a "flat-fee" approach. This ensures that each salon will be paying a consistent amount to the franchise each month, which is typically lower than the base minimum for other indoor tanning industry franchises. Most importantly, the "flat-fee" approach taken by Executive Tans allows their franchisees to take home more profits as they continue to grow their franchise.

"By offering the flat-fee payment to our franchisees, they truly understand that we are a hassle-free, all up-front indoor tanning franchise," said Stemple. "There are no 'gotchas' or additional hidden costs once you are open."

"Executized" Conversion

Although it shares in the same principles of training and professionalism, the "Executized" salon is one that existed previously as another salon. Its owners purchased into the Executive Tans franchise concept and have authorized an overhaul of the salon.

"We make it easy for existing salon owners to join the Executive Tans family and take advantage of the successes we've seen through this 'Executizing' program," said Wayne Smeal, CEO and founder of Executive Tans.

Executive Tans will help an existing salon convert into an Executive Tans salon, utilizing our color schemes, buying power, marketing materials and support of the Executive Tans corporate headquarters, while maintaining its customer-base and profiting from the increased exposure.

Franchisees see a return on their investment in various credits and other marketing initiatives. The franchisee can look forward to credits, both for the interior cosmetic package and the advertising re-launch, as well as a credit to open another location should they chose to be a multi-unit franchisee.

"Another value-add on this model is that we offer a pre-approved Small Business Administration packet for 'Executized' salon owners to open another location under our umbrella," added Smeal.

Executive Tans Acquisitions

Executive Tans has created a division within its corporate structure to acquire independent tanning salons in order to provide a "cash" exit strategy. In turn, the corporate offices will convert the salon to an Executive Tans salon and run it with personnel hired by Executive Tans Headquarters.

Executive Tans will purchase 216 indoor tanning facilities, which include tanning salons and full service salons. This is yet another way for Executive Tans to offer existing business owners to the ability to capitalize on the immense success of its brand recognition and high level of customer care.

"We have received a considerable amount of funding and expect that this will be a highly successful strategy for future growth," said Barry Mogler, President of Executive Tans. "Not only does it offer an effective exit strategy for those owners who prefer it, but it will also help to make the tanning industry a 'branded' industry - in turn, increasing the safety and cleanliness for and decreasing the financial costs of the industry on consumers."

About Executive Tans

Established in 1991 in Colorado, Executive Tans is a dominant force in the $7 billion indoor tanning industry, with 70 open locations in 21 markets throughout the United States and an additional 35 in development. Ranked as the number one franchise by Entrepreneur Magazine in the indoor tanning category, and 172 out of the nation's leading 500 franchises, Executive Tans attracts men and women, alike, with a professional, upscale mindset. The fast-growing franchise has tripled its units in the past two years and boosted total sales from about $1 million in 2000 to more than $10 million in 2002.

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