Poll: Hollywood Tan Salon Owners Post Your Concerns

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  1. #1

    Hollywood Tans Franchise Scam Owners

    HOLLYWOOD TANS IS A FRANCHISE RIPP OFF!


    Please respond and let us know if there are more Hollywood Tans salon owners and existing franchises complaints!

    I have 13 franchise store owners who have purchased Hollywood Tan Franchise System and have been lied to and scammed! We have merging to prepare and file a suit against this company and new owners! I am on a mission to expose the falsehearted actions of this company! I will be adding other franchises to this list as there are more salon owners beginning to seek help with their financial sate of affairs and join us with the preparation a corporate 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 $34,500.00). April of 2006 and tell me that they will refund the fee and have not yet to this date. They instructed me to lie to the SBA via e-mail about cash projections in reference to my sales projected figures in order for me to secure the loan. 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 sales figures so I would obtain the SBA loan. The additional franchises and HT salon owners that I have been getting statements from have verified this information and other horror stories about HT not listening to salon owners problems and not caring for 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.
    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!
    Recent Update!
    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 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!

    Update…March 1, 2008 . Another Salon Closed today! West Hartford Ct.





    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
    By Julian Kesner

    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.

    But Dr. Sumayah Jamal, a dermatologist at NYU Medical Center, disagrees. "I never recommend that my patients go to tanning salons," Jamal said, adding that he recommends sunless tan lotions.
    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 Farricielli
    11@rosefarm.com
    Last edited by CHARLES FARRICIELLI; 03-05-2008 at 11:05 AM.

  2. #2

    Re: Hollywood Tans Franchise Scam Owners

    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 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.


  3. #3

    Re: Hollywood Tans Franchise Scam Owners

    Thought I would include this recent e-mail from Hollywood Corporate

    I trust that this proves our alligations!

    From: Hollywood Tans <hollywoodtans@hollywoodtans.com>
    To: Hollywoodtans Marketing <hollywoodtans@hollywoodtans.com>
    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 successful—and we think potentially very successful—spring 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


  4. #4
    Join Date
    Mar 2007
    Posts
    27

    Re: Hollywood Tans Franchise Scam Owners

    move To Spam Folder!!!!!!!!!!!

  5. #5

    Re: Hollywood Tans Franchise Scam Owners

    I dont understand. Have we violated some sort of rule?
    What does "Move to Spam Folder mean?

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