What federal law imposes a tax on UV tanning services for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all federal and state licensing and other regulatory requirements relating to the operation of your Salon. A federal law imposes a 10% national sales tax on UV tanning services. The Food and Drug Administration (FDA) regulates the labeling of tanning equipment and places limits on the amount of time a person can be exposed to UV tanning. The FDA also requires adherence to certain specifications for timers and bulbs and restricts certain representations about indoor tanning services. Many state and local governments have also implemented laws and regulations to regulate businesses offering indoor tanning services, including laws that establish a minimum age requirement for persons who use indoor tanning services. In California, customers must be 18 or older to receive UV tanning services. There may be other laws and regulations that apply to your Salon. We strongly suggest you investigate these laws before buying this franchise.
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a federal law imposes a 10% national sales tax on UV tanning services. This means that as an Itan franchisee, you will be responsible for collecting and remitting this tax on all UV tanning services provided at your salon. This tax could impact the pricing strategy for these services, as franchisees will need to factor in the additional 10% when setting prices to maintain profitability.
Furthermore, the FDD highlights that Itan franchisees must comply with all federal and state licensing and regulatory requirements related to operating their salon. In addition to the federal tax, the Food and Drug Administration (FDA) regulates the labeling of tanning equipment and sets limits on UV exposure times. The FDA also mandates adherence to specific standards for timers and bulbs and restricts certain claims about indoor tanning services.
Many state and local governments also have laws regulating indoor tanning businesses, including minimum age requirements for customers. For example, in California, customers must be 18 or older to use UV tanning services. Itan strongly advises prospective franchisees to investigate all applicable laws before buying a franchise, ensuring full compliance and avoiding potential legal issues. Understanding and adhering to these regulations is crucial for the successful and compliant operation of an Itan franchise.