Hollywood Tans Franchisees Benefit from Systemwide Promotions
April 9, 2007 by Sean Kelly
Filed under Business
The Hollywood Tans Hot Tan Hot Car Sweepstakes Shows the Benefit of Franchising.
One of the benefits of joining a franchise system is the benefit of systemwide promotions… advertising, marketing and public relations opportunities that would be cost-prohibitive for any “independent” business owner. Take, for example, the current Hollywood Tans promotion. Hollywood Tans is awarding a brand new 2007 Porsche Boxster EVERY MONTH through 2007.
While no purchase is necessary, Hollywood Tans customers are automatically enrolled every time they tan! It’s a great way to boost usage from current members… which will enhance loyalty, membership renewal and the opportunity for add-on sales. It’s also a great promotion to grab the attention and induce trial from prospective members.
For more information on the promotion or the Hollywood Tans franchise opportunity, visit the Hollywood Tans Website or the Inside Hollywood Tans franchise blog.
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
Charles:
These are pretty serious allegations. Can you be specific about your situation (an leave out the consumer class action nonsense, which is irrelevant). You are saying:
The company made representations about projected cash flow and profits BEFORE you signed the franchise agreement?
You then signed a franchise agreement & paid a franchise fee?
You then had difficulty obtaining an SBA loan?
The CFO advised you on how to make your application more acceptable to the SBA, but you thought it was deceitful?
They told you they would refund your franchise fee, then told you they would have to resell the territory BEFORE they refunded your franchise fee?
Please clarify if this is incorrect. Also:
What does your franchise agreement say about what happens if you are unable to obtain funding?
Did you have a location or a territory chosen when you signed the agreement?
Did they stop accepting applications or inquiries for that territory while you sought financing?
Did you attend training or orientation? Did they secure a location or sign a lease?
Have things changed since the new owners took over?
Hello Sean,
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!
Just a note to readers: I’ve found CHARLES FARRICIELLI’s comments here and on Ripoff report to be very unreliable and misleading.
My understanding is he pulled out of the deal after paying his franchise fee. They’ve agreed to repay him his franchise fee when they resell the territory he tied up, as per the contract he signed.
All the stuff about HT not supporting franchise owners is unsubstantiated and irrelevant to his complaint. On rip-off report he claimed that he and a group of franchisees retained counsel and are suing HT. The next comment he says they have not retained counsel. He claims that all the franchisees are outraged, yet the only ones who have posted were positive, even complimentary about the company. Charles argued with them that the support was bad! And they were franchisees!
Unfortunately, Charles is a classic self-defeatist. His rants about how bad the company is has probably discouraged sales in his market – preventing him from getting his money returned.
I’m no fan of tanning franchises in general, but what I’ve seen and heard of Hollywood Tans has been positive.
Charles is a colorful guy with an online roses business. I hope for his sake he can move on.
Hey Sean
Thank you for you choice of words and impertinent comments! But if I were you I would make sure that your observations were factual and not total deception as they are! You are performing like you are an HT executive! I checked you out and I found information that you are associated with Hollywood Tans Company!
Somebody pay you my friend? Can’t figure out why you are making false comments to protect a company franchise system that you have an interest in! What reason would a Canadian have in this post anyway?
For your information we have retained an attorney that will represent 22 national HT salons that will be suing your friends company!
Oh Sean, by the way, HT paid me! And I am not combating for myself! I am in this to help the Salon owners who have actually lost their businesses, personal property and their homes!
Why not call HT and ask them? Be my guest!
Is you business B5 Media losing money Sean? Maybe you are you just bored.
By the way this “colorful” guy that you have never met would like you to say that to my face! Why hide behind a post!
I will continue to help the Salon owners that have formed a union with us, that are losing their businesses and personal property! I will fight to help these Salon owners change the ambiguous and bias franchise laws in the Tri Sate area. But what would that matter to a Canadian?
Also two more Salons closed in Ct. And one for sale…Want to buy it Sean?
Oops. I didn’t think Mr. F was still around. But I saw this post was linked to from a Tanning site and wanted to make sure any new readers were acquainted with the inaccurate and misleading statements that are Charlie Farricielli’s commenting trademark. Let’s see how many he racks up this time:
I checked you out and I found information that you are associated with Hollywood Tans Company!
I am not associated with “Hollywood Tans Company”
What reason would a Canadian have in this post anyway?
I am not a Canadian. That’s 2.
Is you business B5 Media losing money Sean?
B5 Media is not my company. That’s 3.
I will fight to help these Salon owners change the ambiguous and bias franchise laws in the Tri Sate area. But what would that matter to a Canadian?
There are no Tri State franchise laws. And I’m not Canadian. 4.
…we have retained an attorney that will represent 22 national HT salons that will be suing your friends company!
Sure you have. Does this firm have a name? Does my wealthy friend? That’s 5.5.
By the way this “colorful” guy that you have never met would like you to say that to my face!
I meant “colorful” in a positive way. I read your articles on roses and thought they were rather creative and charming. You seem like a nice guy when you’re not screaming at me. But if you’re coming up to Canada soon, look me up. We’ll grab a tan together.
Seriously, I’m glad you got your money returned. Congratulations. Maybe your outrage at HT is justified… I’ve just never seen it. All the franchisees I’ve met were positive about the company.
But Charles, man, lighten up a little. It’s spring. Mother’s Day coming up. Time to stop and sell the roses…
Let the readers make thier own decision!
Keep selling your Hollywood Tans Franchise .. Im sure its all about the money Sean!
I will continue to expose the HT company with a passion.
Thanks for the immediate response.
Oh Sean, by the way ….Thanks for the Invite. But you dont want me to make a trip up there to Canada! Believe me ………..my friend!
OH MY GOD! WHO EVER “SEAN” IS, HE DEFINATELY SOUNDS LIKE ONE OF THE CORPORATE ROBOTS. I LOST EVERYTHING IN A “SWEET DEAL” WITH RALPH SR. AND I AM NOT ALONE. IN LESS THAN A MONTH, THEY TOOK OVER AND CLOSED 4 SALONS AT THE JERSEY SHORE. NO REGARD WHATSOEVER FOR THE CUSTOMERS, EITHER! DAMN NEAR EVERY CORPORATE EMPLOYEE WAS REPLACED, AFTER THE ACI “TAKE OVER”. (MOST WERE DEAD WOOD ANYWAY) THERE WERE SOOOOOO MANY HANDSHAKE DEALS AND PREFERRED VENDOR RIPOFFS. YOU’LL NEVER GET THE DETAILS, DUE TO GAG ORDERS AND FEAR OF LEGAL ACTION.
Sean should really smell CHARLES roses.
HT presented itself as a great company to own..
More of a great company to open, run out of money and have corporate take it over, just to resell it again. or keep it themselves ever wonder how the ceo and owner got stores in the teens… everyone else blood and sweet.
Closed stores to of recent.
Bayonne – edison – kendall pk – forked river- springfield – just in nj alone… and what we know of many more around with closed doors and not talked about.
I would only recommend this company to anyone you HATE and would love to see go belly up. its true… just do your own research…
Sean should really smell CHARLES roses.
No offense, but I think I’ve whiffed enough of Charles. But thanks for the offer.
WHO EVER “SEAN” IS, HE DEFINATELY SOUNDS LIKE ONE OF THE CORPORATE ROBOTS
If I were a corporate robot, I would not set up a discussion site where both sides are free to air their opinions, warnings, grievances, etc. without being edited or censored. I’m not even saying you’re wrong, just that I had a good impression of them when I visited. Obviously you had a good impression of them also you wouldn’t have bought a franchise, correct?
If you’ve got a legitimate grievance, take the time to tell your story, explain what happened and why it’s not a good franchise opportunity. Stick with facts, give some details not just a few random town names and insults. If you’re counting on Charles to be your spokesman, well, you might want to consider someone who hasn’t been breathing in the pesticide fumes, if you know what I mean. Since he can’t even figure out which country to go to to kick my *ss, he might be lacking in the credibility (and logic) department.
I LOST EVERYTHING IN A “SWEET DEAL” WITH RALPH SR. AND I AM NOT ALONE…
we know of many more around with closed doors and not talked about… just do your own research…
People are HERE doing their research. This is the extent of what you’re willing to share? I lost everything in a sweet deal with the last owner, who sold the company and is no longer living?
We’re supposed to take your word for it… but you offer no details, no explanation?
No offense, but if you read the complaints from the Butterfly Life, Curves, Cuppy’s Coffee, Contours Express, and others on this site, they actually tell their stories, explain the unethical practices, make a point. The HT complainers come off as too lazy or indifferent to take the time to warn others to not make the same mistakes they did.
Tell me: Is this the kind of effort you put into running your salons?
_________________________
FYI: There’s a website dedicated to voicing franchisee disputes. It’s called http://www.UnhappyFranchisee.com. You can request your story to be posted by emailing unhappyfranchisee[at]gmail.com.
Be forewarned: they might actually ask you to write a complete paragraph using real examples and at least one complete sentences. I haven’t seen a single HT complainer willing to put in that minimal effort except Charles. My guess is none of you will be willing to put in the effort to contribute there either.
So far, the only point you’ve made is that Hollywood Tans needs to be more selective in their franchisee recruitment.
Very similar complaint with Gone Hollywood Video. Very impressive in the beginning with their help in attaining funding, then once the deal is done…no help, no support, gone. This ended in a bankrupt franchise owner.
Own an HT. Please contact me. Same problem here
I’ll tell you exactly how you can hit em where it hurts. This page is not enough to make them listen to you. One complaint that not many will hear won’t bother them or lose them much money. But if you go on myspace and tell people how hollywood is ripping off not only you but them too, if you can post blogs and bulletins telling how reprehensible their behavior is and how they screw over the average joe, then i think it’ll start to make them stand up and listen. Not only am i disgusted with the fact that they would cheat you out of your money when you’re going into buseness with them but it also makes me think their customers must be like nothing to them. I’s also disgusting with how much money they make every minute in this country alone that they would be so greedy to take your money which they earn that much in half a day. how shamefull are they. I’ll tell you, you write up a seething letter much like the one you’d already written above and add some of mine if you should feel so inclined and get on myspace and send it as a message to all your friends and ask them to send it to all their friends and have their freinds send it on and so on. I will start with the 200 friends i have on my myspace page. then you post it as a bulletin everyday so no-one forgets and as amatter of fact send the messages every day too. then get on facebook and do it the same way. You’ll reach New Zealand before the week is out. trust me they don’t want that kind of publicity, they think there’s no alternative and they’ve cornered the market but to be completely honest i prefer private owned tan salons to big chains. like key west tans in cinnaminson nj. by the end of it you’ll probly get your money back reall soon plus interest. and by the way this goes for anyone having problems with corporate WANKERS!