- Report: #294122
Complaint Review: HOLLYWOOD TAN FRANCHISE SYSTEM - Mt. Laurel New Jersey
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HOLLYWOOD TAN FRANCHISE SYSTEM
Plaza Suite 400, 1120 Route 73 South Mt. Laurel, 08054 New Jersey, U.S.A.
Phone:
877-TANS123
Web:
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HOLLYWOOD TAN FRANCHISE SYSTEM DECEPTIVE RIPP OFF! LURES FRANCHISES INTO BUSINESS! STEALS THIER MONEY! Mt. Laurel, New Jersey
*Consumer Comment: Feedback
*Author of original report: Answer to rebuttal
*Author of original report: UPDATE HOLLYWOOD TANS SCAM
*Author of original report: update
*Author of original report: Hollywood Tans Complaint Udate! Mt. Laurel, NJ 08054
*Author of original report: Hollywood Tans Complaint Udate! Mt. Laurel, NJ 08054
*Author of original report: Hollywood Tans Complaint Udate! Mt. Laurel, NJ 08054
*Author of original report: HOLLYWOOD TAN SALON OWNERS COMPLAINTS UPDATES
HOLLYWOOD TANS IS A FRANCHISE RIP OFF!
PLEASE respond and let us know if there are more franchises complaints!
Please listen to us! I have 7 franchise store owners who have purchased Hollywood Tan Franchise System and have been lied to and scammed! We have merged to prepare and file a class action suit against this company and owners!
I am on a mission to expose this deceitful company! I will be adding other franchises to this list as there are more owners beginning to seek help with their financial sate of affairs and join us with the preparation of this new class action suit as they learn about their fellow franchises owners beginning this complaint!
This companies dishonesty regarding projected cash flow, false stated profits and the deceitful business opportunity statements have financially hurt many franchise owners. 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 corporate continued deceiving us and claim they now have to re-sell the territory! I have e-mail proof of the chief financial officer telling me to up the sales 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 cheating and taking profits from 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.
We are presently working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.
I have contacted the owners, and managers of the Hollywood Tan corporate headquarters and they will not answer my letters phone calls or my e-mail!
Also there is already a class action suit against this company from consumers!
Here they are.
June 22, 2006 Hollywood Tans, Nation's Largest Indoor Tanning Chain, sued for Fraud and Failure to warn of Major Health Risks. Class Action Lawsuit Disputes Claims of a Safe Tan.
Meiselman, Denlea, Packman, Carton & Eberz, P.C., acting on behalf of a New Jersey woman and a nationwide class of citizens and residents, has filed a class action lawsuit believed to be the first of its kind - against Hollywood Tanning Systems, Inc., charging the owner of Hollywood Tans, the nation's largest chain of tanning salons, with fraudulent, deceptive and otherwise improper business practices by marketing indoor tanning to unsuspecting customers as a safe, healthy alternative.
The lawsuit, filed June 21, 2006, seeks trebled compensatory damages, including, but not limited to, a refund of the fees paid for Hollywood Tans services, punitive damages, attorneys fees and the costs of the suit.
The suit, filed in New Jersey State Superior Court in Middlesex County, charges than Hollywood Tans, while promoting the benefits of tanning, not only exaggerates those benefits but also fails to provide adequate warnings to customers about the dangers of tans from its ultraviolet rays.
The suit is being brought pursuant to the New Jersey Consumer Fraud Act on behalf of a nationwide class of tens of thousands of people who have purchased indoor tanning services from Hollywood Tans, whose principal place of business is located in New Jersey. As the largest indoor tanning company, Hollywood Tans operates, through its network of franchised stores, over 300 indoor tanning facilities.
The complaint available to the media upon request asserts that the US. Department of Health and Human Services has labeled UV radiation from the sun and artificial sources, such as indoor tanning machines, as a known carcinogen. The American Medical Association and dozens of other professional medical groups have similarly declared unambiguously that indoor tanning is not safe and dramatically increases the risk and occurrence of skin cancer. They further state that there is no such thing as a safe tan and that indoor tanning, which has mushroomed to a $5 billion-a-year industry, is significantly contributing to the skin cancer epidemic. One American dies every hour from skin cancer, according to the American Cancer Society.
Attorneys David J. Meiselman, Jeffrey I. Carton and Lindsay M. Held of Meiselman Denlea filed the suit on behalf of Ms. Hadis Nafar, a resident of Middlesex County, who was a monthly member of Hollywood Tans from April 2005 until May 2006. The complaint declares that Ms. Nafar was not provided with any information or warnings concerning cancer or other health risks associated with indoor tanning and Defendant's ultraviolet services. Similarly, she did not receive any warnings or notices prior to conducting any indoor tanning session, nor was she asked to sign any consents or waivers relating to potential dangers.
The complaint points out that the indoor tanning industry relies on, and promotes, the myth that a tan is much better than a burn. In fact, according to an abundance of incontrovertible evidence, both are triggered by UVA and UVB, two forms of ultraviolet light emitted by sunlight and indoor tanning equipment, and, indeed, research has found that both UVA and UVB destroy the DNA in cells, a precursor to cancer.
Hollywood Tans, according to the suit, emphasized the dubious claims of tanning benefits while failing to warn, or even provide any perfunctory notice to, customers regarding the substantial risks of 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 complaint, which demands a trial by jury, further notes that reminiscent of the tobacco industry's deceptive and quixotic attempt to produce and market a safe cigarette, the so-called 'safe tan touted by the industry's lobbyists and marketers, did not materialize.
The suit charges that Hollywood Tans 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 at the time that Hollywood Tans made them, and intended that the people who purchased and used its tanning services rely upon such false and misleading representations. Hollywood Tans conduct was intentional, wanton, willful, malicious, and in blatant disregard of, or grossly negligent and reckless with respect to the life, health, safety and well-being of the Plaintiff and the members of the Class
For too long, the indoor tanning industry has been promoting the myth of a safe tan through indoor tanning; however, nothing could be further from the truth, said Dr. David J. Goldberg, Vice President of the non-profit Skin Cancer Foundation and Director of Skin Laser & Surgery Specialists of New York and New Jersey. Indoor tanning facilities should be required, at the very least, to provide clear warnings to customers about the dangers of indoor tanning and the link between indoor tanning and skin cancer.
Dr. Goldberg, who is also a Clinical Professor of Dermatology at New York's Mount Sinai School of Medicine, added that Indoor tanning salons should also be required to obtain parental consent prior to the use of indoor tanning by minors who are the most susceptible to the indoor tanning industry's aggressive, false marketing.
Hollywood Tanning Systems, Inc. is a corporation established under the laws of the State of New Jersey with its principal place of business located in Mount Laurel, NJ.
Meiselman, Denlea, Packman, Carton & Eberz, P.C. is one of the nation's top litigation law firms. It is comprised of seasoned lawyers who have successfully tried cases in both state and federal courts at the highest levels, as well as in a variety of alternative dispute resolution forums such as arbitration and mediation. The firm's litigators have traveled throughout the United States and abroad and have collectively procured in excess of $100 million in awards, judgments and settlements. Among other cases of national significance, Meiselman Denlea has prosecuted the wrongful death claim of Baltimore Orioles pitcher Steve Bechler against the makers of the ephedra-based dietary supplement linked to his death; and is currently prosecuting a national class action suit against the makers and distributors of the popular diet supplement CortiSlim and a sex discrimination case against the Borgata Hotel Casino and Spa in Atlantic City.
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?
City tanning salon giant mum on hidden dangers, says suit
The country's largest chain of tanning salons was burned with a class action suit yesterday charging it failed to warn customers of the potential dangers of browning indoors.
Hollywood Tanning Systems, which operates a dozen salons in Manhattan, Brookyn and Staten Island, never told customers the tanning beds could be dangerous, says the suit. It was was filed in New Jersey and does not allege that anyone has actually been injured.
Lead plaintiff Hadis Nafar, of Middlesex County, said he purchased monthly tanning packages at a local Hollywood Tans salon from April 2005 to March 2006 and was never warned about the potential danger of getting skin cancer or other health problems.
"Rather than perpetuate false myths about 'safe tans' and the so-called benefits of tanning at their indoor facilities, Hollywood Tans should be warning customers about the real risks of indoor tanning, and the links between indoor tanning and skin cancer," said class action attorney Lindsay Held.
Hollywood Taning Systems Inc. did not return multiple calls and e-mails for comment yesterday. Its Web site contends tanning can help with weight loss, psoriasis, acne, stress and seasonal affective disorders.
Corporate Info
Hollywood Tans
Address: CSC Plaza Suite 400
1120 Route 73 South Mt. Laurel, NJ 08054
Phone Number: 1 (877) TANS 123
Fax Number: (856) 914-9099
Thanks you so much, warmest regards,
Charles
NORTHFORD, Connecticut
U.S.A.
PLEASE respond and let us know if there are more franchises complaints!
Please listen to us! I have 7 franchise store owners who have purchased Hollywood Tan Franchise System and have been lied to and scammed! We have merged to prepare and file a class action suit against this company and owners!
I am on a mission to expose this deceitful company! I will be adding other franchises to this list as there are more owners beginning to seek help with their financial sate of affairs and join us with the preparation of this new class action suit as they learn about their fellow franchises owners beginning this complaint!
This companies dishonesty regarding projected cash flow, false stated profits and the deceitful business opportunity statements have financially hurt many franchise owners. 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 corporate continued deceiving us and claim they now have to re-sell the territory! I have e-mail proof of the chief financial officer telling me to up the sales 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 cheating and taking profits from 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.
We are presently working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.
I have contacted the owners, and managers of the Hollywood Tan corporate headquarters and they will not answer my letters phone calls or my e-mail!
Also there is already a class action suit against this company from consumers!
Here they are.
June 22, 2006 Hollywood Tans, Nation's Largest Indoor Tanning Chain, sued for Fraud and Failure to warn of Major Health Risks. Class Action Lawsuit Disputes Claims of a Safe Tan.
Meiselman, Denlea, Packman, Carton & Eberz, P.C., acting on behalf of a New Jersey woman and a nationwide class of citizens and residents, has filed a class action lawsuit believed to be the first of its kind - against Hollywood Tanning Systems, Inc., charging the owner of Hollywood Tans, the nation's largest chain of tanning salons, with fraudulent, deceptive and otherwise improper business practices by marketing indoor tanning to unsuspecting customers as a safe, healthy alternative.
The lawsuit, filed June 21, 2006, seeks trebled compensatory damages, including, but not limited to, a refund of the fees paid for Hollywood Tans services, punitive damages, attorneys fees and the costs of the suit.
The suit, filed in New Jersey State Superior Court in Middlesex County, charges than Hollywood Tans, while promoting the benefits of tanning, not only exaggerates those benefits but also fails to provide adequate warnings to customers about the dangers of tans from its ultraviolet rays.
The suit is being brought pursuant to the New Jersey Consumer Fraud Act on behalf of a nationwide class of tens of thousands of people who have purchased indoor tanning services from Hollywood Tans, whose principal place of business is located in New Jersey. As the largest indoor tanning company, Hollywood Tans operates, through its network of franchised stores, over 300 indoor tanning facilities.
The complaint available to the media upon request asserts that the US. Department of Health and Human Services has labeled UV radiation from the sun and artificial sources, such as indoor tanning machines, as a known carcinogen. The American Medical Association and dozens of other professional medical groups have similarly declared unambiguously that indoor tanning is not safe and dramatically increases the risk and occurrence of skin cancer. They further state that there is no such thing as a safe tan and that indoor tanning, which has mushroomed to a $5 billion-a-year industry, is significantly contributing to the skin cancer epidemic. One American dies every hour from skin cancer, according to the American Cancer Society.
Attorneys David J. Meiselman, Jeffrey I. Carton and Lindsay M. Held of Meiselman Denlea filed the suit on behalf of Ms. Hadis Nafar, a resident of Middlesex County, who was a monthly member of Hollywood Tans from April 2005 until May 2006. The complaint declares that Ms. Nafar was not provided with any information or warnings concerning cancer or other health risks associated with indoor tanning and Defendant's ultraviolet services. Similarly, she did not receive any warnings or notices prior to conducting any indoor tanning session, nor was she asked to sign any consents or waivers relating to potential dangers.
The complaint points out that the indoor tanning industry relies on, and promotes, the myth that a tan is much better than a burn. In fact, according to an abundance of incontrovertible evidence, both are triggered by UVA and UVB, two forms of ultraviolet light emitted by sunlight and indoor tanning equipment, and, indeed, research has found that both UVA and UVB destroy the DNA in cells, a precursor to cancer.
Hollywood Tans, according to the suit, emphasized the dubious claims of tanning benefits while failing to warn, or even provide any perfunctory notice to, customers regarding the substantial risks of 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 complaint, which demands a trial by jury, further notes that reminiscent of the tobacco industry's deceptive and quixotic attempt to produce and market a safe cigarette, the so-called 'safe tan touted by the industry's lobbyists and marketers, did not materialize.
The suit charges that Hollywood Tans 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 at the time that Hollywood Tans made them, and intended that the people who purchased and used its tanning services rely upon such false and misleading representations. Hollywood Tans conduct was intentional, wanton, willful, malicious, and in blatant disregard of, or grossly negligent and reckless with respect to the life, health, safety and well-being of the Plaintiff and the members of the Class
For too long, the indoor tanning industry has been promoting the myth of a safe tan through indoor tanning; however, nothing could be further from the truth, said Dr. David J. Goldberg, Vice President of the non-profit Skin Cancer Foundation and Director of Skin Laser & Surgery Specialists of New York and New Jersey. Indoor tanning facilities should be required, at the very least, to provide clear warnings to customers about the dangers of indoor tanning and the link between indoor tanning and skin cancer.
Dr. Goldberg, who is also a Clinical Professor of Dermatology at New York's Mount Sinai School of Medicine, added that Indoor tanning salons should also be required to obtain parental consent prior to the use of indoor tanning by minors who are the most susceptible to the indoor tanning industry's aggressive, false marketing.
Hollywood Tanning Systems, Inc. is a corporation established under the laws of the State of New Jersey with its principal place of business located in Mount Laurel, NJ.
Meiselman, Denlea, Packman, Carton & Eberz, P.C. is one of the nation's top litigation law firms. It is comprised of seasoned lawyers who have successfully tried cases in both state and federal courts at the highest levels, as well as in a variety of alternative dispute resolution forums such as arbitration and mediation. The firm's litigators have traveled throughout the United States and abroad and have collectively procured in excess of $100 million in awards, judgments and settlements. Among other cases of national significance, Meiselman Denlea has prosecuted the wrongful death claim of Baltimore Orioles pitcher Steve Bechler against the makers of the ephedra-based dietary supplement linked to his death; and is currently prosecuting a national class action suit against the makers and distributors of the popular diet supplement CortiSlim and a sex discrimination case against the Borgata Hotel Casino and Spa in Atlantic City.
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?
City tanning salon giant mum on hidden dangers, says suit
The country's largest chain of tanning salons was burned with a class action suit yesterday charging it failed to warn customers of the potential dangers of browning indoors.
Hollywood Tanning Systems, which operates a dozen salons in Manhattan, Brookyn and Staten Island, never told customers the tanning beds could be dangerous, says the suit. It was was filed in New Jersey and does not allege that anyone has actually been injured.
Lead plaintiff Hadis Nafar, of Middlesex County, said he purchased monthly tanning packages at a local Hollywood Tans salon from April 2005 to March 2006 and was never warned about the potential danger of getting skin cancer or other health problems.
"Rather than perpetuate false myths about 'safe tans' and the so-called benefits of tanning at their indoor facilities, Hollywood Tans should be warning customers about the real risks of indoor tanning, and the links between indoor tanning and skin cancer," said class action attorney Lindsay Held.
Hollywood Taning Systems Inc. did not return multiple calls and e-mails for comment yesterday. Its Web site contends tanning can help with weight loss, psoriasis, acne, stress and seasonal affective disorders.
Corporate Info
Hollywood Tans
Address: CSC Plaza Suite 400
1120 Route 73 South Mt. Laurel, NJ 08054
Phone Number: 1 (877) TANS 123
Fax Number: (856) 914-9099
Thanks you so much, warmest regards,
Charles
NORTHFORD, Connecticut
U.S.A.
8 Updates & Rebuttals
Charles
NORTHFORD,Connecticut,
U.S.A.
HOLLYWOOD TAN SALON OWNERS COMPLAINTS UPDATES
#2Author of original report
Wed, March 05, 2008
Hollywood Tans Is Scamming Salon owners!!!!!!!!!!! Update West Hartford Ct was closed On Feb 16,2008 That makes 3 closed Salons in 12 Months in Ct. There are only 10 left and 6 more in trouble! Here is how this Company decided to help salon owners.... Here is the actual E-MAIL letter from Corporate that will prove alligations from the salon owners that they are all hurting...Losing thier business, some losing thier homes! -----Original Message----- From: Hollywood Tans To: Hollywoodtans Marketing Sent: Fri, 29 Feb 2008 2:02 pm Subject: Letter from J.J. Sorrenti February 29, 2008 Dear Hollywood Tans Franchisee: We are fast-approaching our most productive season and we're putting the final touches on new marketing materials (including new television commercials, print ads, in-store graphics, and more) that we believe will help drive new customers into the salons. All of us are truly excited by what we've seen, and we're sure when you see the information at the upcoming market materials, that you will too. Unfortunately, because of the staggering size of accounts receivable from franchisees (including royalties, marketing invoices, rents, and equipment payments), we're not in a position to leverage the new marketing materials. The fact is that certain franchisees owe us nearly $10 million, most of which is past due! And, without that cash in hand, we will not be in a position to market at the level we believe is necessary for a successfuland we think potentially very successfulspring and summer busy season. That will hurt all of us. The current accounts receivable situation from our franchisees is simply unacceptable, and we are taking action immediately so that we will have the necessary cash to take advantage of our season. Hollywood Tans (and our franchisees who are meeting their obligations with the company) should not and will not allow some franchisees to freeload on our marketing investments. Rest assured, our company is not in any kind of financial jeopardy. Rather, we are fed-up with franchisees who are not paying their obligations to us. Consequently, please be advised that franchisees that owe past-due amounts to the company must pay the amounts owed to us immediately. We understand that you may not have the cash to do so. If your account is delinquent and you don't have the cash to pay us immediately, you have one of several options: 1. You may need to meet with your banker to get a short-term loan; 2. You may need to use personal or corporate credit cards to pay your balance due; 3. You may need to contact the third-party lender whose contact information is included with this letter, who may be able to help you with an alternate source of immediate cash; or 4. You may need to use other sources of cash (assets that can be sold or others who may be willing to provide loans or cash). If your account is past due and we do not receive immediate payment, we will begin to take action. These actions will include: 1. Effective March 1, 2008, franchisees with past due accounts will no longer be able to take advantage of the promotions we offer in our wholesale business (such as $1 off each bottle of lotion purchased, etc.). Franchisees with past due balances will pay full wholesale price for any items purchased; 2. Report your past due amount to the credit bureaus; 3. Turn your account over to a collection agency; 4. Terminate your franchise agreement. We will take these actions with regret, but also with the confidence that successful franchise systems simply do not permit their accounts receivable to increase in the way that we have. Finally, as a gesture of goodwill, as a one-time offer, every franchisee whose November, December and January marketing invoices are paid in full by March 7, 2008 (including those whose marketing invoices have already been paid), will receive a $500 credit on his or her your account to be used toward future advertising invoices. Please note that we have no obligation to provide this credit, since the amounts that were billed to you were already spent on marketing. For those of you with past due accounts, this is a very serious matter. If you have past due amounts, you should consider this as your final warning. If we do not receive payment of your past due amounts, you are putting your credit record and, most importantly, your franchise business at risk. Sincerely, J.J. Sorrenti CEO Hollywood Tans, LLC 11 Enterprise Court Sewell, NJ 08080 856.716.2150 T 856.716.2151 F www.hollywoodtans.com Also a Salon owner wrote to me today here............. There whole advertising that we pay for is based on funding their future growth... They admitted to doing a national radio buy for december, which our advertising money is suppose to be used on regional ads. So why was I billed $3500 in nj and people in California billed the same thing... Also why do we have to pay for radio ads that aired in texas, which has one salon but they want to expand in? On page 21 on my franchise agreement it states that the national advertising program is 1% of gross sales... Well I didn't' make $350k in 2007 did any of you? And I don't feel I should have to pay for their expansion when our UFOC states the program is for regional co-op funds... to be split among those stores in that region... Since when is CT and NJ in the same region, and if we are how the heck does California be a part of that. Also on page 22 in my book it states we could request an annual accounting of the co-op advertising program. In addition, my UFOC states they don't make money on the advertising program so why is Jennifer heading up a new ad agency ion the company and they also need mullen to advertise... second paragraph... http://www.lookingfit.com/hotnews/81h2492944.html A group of people in NJ are getting together and going to be fighting this issue.... Since we strongly feel they are using this program to recapture CHEAP stores for a quick profit on the flip. JJ had the never to ask me what I'm doing on the local level... For paying $15k to $20k a year on advertising I shouldn't have to do a d**n thing.... Heck, I could pay people $5 bucks to tan, and still get more people in my store for less.. March 13th newark NJ corporate road show with q&A should be a lot of angry franchise's there.... Also....RECENT POST ON "TAN TALK" As a former business owner interested in franchising a salon, I was excited to hear about Hollywood Tan's successes in New Jersey. But here is a chronicle as of today regarding my experiences in dealing with them: 1. Call New Jersey Office. 2. Deal with rude operator, who has a don't give a crap attitude. 3. No one is in to take my call. 4. No one other than the Ralph's can answer franchising questions 5. Leave a message on voice mail. 6. No, cannot do that. Voice mail is full and not accepting messages. 7. Call back to leave a written message. 8. Operator with attitude again, and says she doesn't take messages, that I must leave it on voice mail. Explain that voice mail is full, she says she doesn't understand; and drops me into voice mail again. 9. This time voice mail works. Hmmm? 10. Leave message saying I have $275K to invest in multiple locations, if possible, and would like to receive a phone call a.s.a.p. 11. Five days later, no phone call. 12. Ten days later, no phone call. 13. Now, I am concerned that I left the wrong phone number. 14. Call back. Same attitudinal operator, same situation - no one available, same voice mail left. 15. Four days and no call. 16. Five days and no call. 17. Visit web site, and see all these locations blinking and saying they are opening soon! 18. Call other Hollywood Tan salon owners, who do nothing but praise the Ralph's. I begin to wonder, am I missing something. 19. Call Hollywood Tan office again. 20. Same attitudinal operator. Same situation, same voicemail. Same crap! 21. Two days later, no phone call. 22. Anyone else have these problems? Will be more updates soon! Charlie
Charles
NORTHFORD,Connecticut,
U.S.A.
Hollywood Tans Complaint Udate! Mt. Laurel, NJ 08054
#3Author of original report
Fri, January 04, 2008
Recent Update! My group is not suing HT! We are waiting for answers and solutions from the HT company! We have not retained any attorneys and we are not working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.! I THOUGHT THAT I WOULD POST DETAILS TO ANSWER SOME QUESTIONS AND CONCERNS AS WELL! 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 projected 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 didnt 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 owners 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!
Charles
NORTHFORD,Connecticut,
U.S.A.
Hollywood Tans Complaint Udate! Mt. Laurel, NJ 08054
#4Author of original report
Fri, January 04, 2008
Recent Update! My group is not suing HT! We are waiting for answers and solutions from the HT company! We have not retained any attorneys and we are not working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.! I THOUGHT THAT I WOULD POST DETAILS TO ANSWER SOME QUESTIONS AND CONCERNS AS WELL! 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 projected 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 didnt 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 owners 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!
Charles
NORTHFORD,Connecticut,
U.S.A.
Hollywood Tans Complaint Udate! Mt. Laurel, NJ 08054
#5Author of original report
Fri, January 04, 2008
Recent Update! My group is not suing HT! We are waiting for answers and solutions from the HT company! We have not retained any attorneys and we are not working with the firm of Meiselman, Denlea, Packman, Carton & Eberz P.C.! I THOUGHT THAT I WOULD POST DETAILS TO ANSWER SOME QUESTIONS AND CONCERNS AS WELL! 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 projected 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 didnt 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 owners 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!
Charles
NORTHFORD,Connecticut,
U.S.A.
update
#6Author of original report
Wed, January 02, 2008
Hello I THOUGHT THAT I WOULD POST DETAILS TO ANSWER SOME QUESTIONS AND CONCERNS AS WELL! 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. We have not retained counsel from Meiselman, Denlea, Packman, Carton & Eberz, P.C. or any other Attorneys as of yet! 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 didnt 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 owners 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!
Charles
NORTHFORD,Connecticut,
U.S.A.
UPDATE HOLLYWOOD TANS SCAM
#7Author of original report
Fri, December 28, 2007
Hello 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 didnt 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 owners 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!
Charles
NORTHFORD,Connecticut,
U.S.A.
Answer to rebuttal
#8Author of original report
Thu, December 27, 2007
Dear Ready 2 Retire, I respect your comment. I do have a few questions. Why would you ask for a defense form this company that would only give you positive feedback about becoming a franchise? Have you begun your cash flow projections? Have you called other HT owners? Connecticut? New Jersey? Did you ask the new company, how many HT businesses have gone out of business this year? Last year? Also have you asked HT if other salons are having problems? Since my post I have heard from more then 10 salons that are on the verge of giving up their HT salons which the company will take back and they lose all their money. I believe there will be more. And yes 2 retire, they did speak to me almost a year and a half ago, continually send me certified mail and justify that they will give me my money back after they RESELL my territory, minus numerous expenses! That will be starting a 2 year anniversary, and I don't believe that they are advertising the area. Thank you I didn't know that there were 5 other victims that have the same situation that I have. Doesn't that tell you something? I pray that you take the time for more due diligence I am retired as well and really could not afford to lose my $34, 500.00! Please continue to watch this post, I'm sure the discontented HT salon owners will be replying to your questions as well. Good luck ready 2 retire!
Ready 2 Retire
Eugene,Oregon,
U.S.A.
Feedback
#9Consumer Comment
Thu, December 27, 2007
I'm sorry to learn about your situation, but I asked the company about situations like yours (since I heard about them when speaking with a couple of other owners). They said that there are a few people (they said less than 5) in your same situation, and that you will get your money back, once they sell the territory you were interested in. They also said they spoke with you and that you are aware of this, and that your agreement said just that ( i was able to use your name, since you included it in your post). When I asked about the other situations you related, the people I spoke with told me that the company recently changed hands, and the entire management team has changed---based on your stories, it sounds like it needed to. I can understand why you are so upset. But based on what I learned, it sounds like you have an agreement that they will give you your money back. I am still proceeding here. This company may have made mistakes in the past, but it seems the new management team is up to snuff and interested in building a brand in an industry dieing for one.
