Wednesday, February 25, 2009

Did you get burned by Hollywood Tans? They are GOOB.

Hollywood Tans on 6th Avenue near 10th Street has gone out of business. They are the largest national chain of tanning salons with over 300 locations (franchises) across the country. If you are in the market for some home tanning equipment it seems that their bank is liquidating all the beds and other potentially unsafe equipment.

One local Brooklyn woman almost got "burned" after she paid $211.86 for ten tanning sessions and found out that after her fifth tanning session her local Hollywood Tans branch went out of business. She contacted a local news station and got her money back. The station offered some helpful GOOB tips on their blog:

1. To protect yourself and the services you've paid for with companies that may go out of business, always ask for paperwork, like a contract or receipt during the initial transaction.

2. Ask the business about what will happen, "if" they were to close or go out of business. Find out what your recourse is should something go wrong.

3. If they don't respond or can't respond, its up to you if you want to do business with them.

In further bad news for Hollywood Tans, a lawsuit surfaced recently where it was alleged that Hollywood Tans and its leasing company induced certain people into “entering into unconscionable franchise agreements, defrauded them by sending them deceptive and inflated invoices, and violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”).

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