European Wax Center Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$327,600 - $836,950
Franchise Fee
$36,000
Min Cash Required
$45,000
Total US Locations
1,067
Business Summary
European Wax Center operates retail businesses that provide high-end facial and body hair removal services, along with related skin care products and services. Franchisees establish and operate centers that offer a consistent guest experience through standardized business systems and proprietary products, such as their unique wax and branded skin care lines.
Corporate History
EWC Franchisor LLC was formed on February 10, 2022, as a Delaware limited liability company and is the current franchisor. However, its affiliated predecessors began offering European Wax Center franchises in 2006. EWC Franchise Group, Inc. was the initial franchisor from 2006 until March 2013, when it merged with EWC Franchise, LLC, which then continued as the franchisor until EWC Franchisor LLC assumed all rights and obligations in April 2022 as part of a securitization transaction. The brand's founders, the Coba family, incorporated EWC Holdings, Inc. in 2008 as a holding company. In September 2018, General Atlantic acquired a controlling interest in European Wax Center.
Financial Overview
Investment Range
$327,600 - $836,950
Franchise Fee (Low)
$36,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$45,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$177,000
Equipment Costs (High)
$533,000
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
European Wax Center, Inc. provides audited financial statements with an unqualified opinion, indicating that the statements present the company's financial position fairly. The company has shown positive trends in net income, increasing from $7,308,000 in 2022 to $10,462,000 in 2024, and growing cash flows from operating activities. However, the total stockholders' equity decreased from $115,003,000 in 2024 to $91,592,000 in 2025. The company carries substantial long-term debt, approximately $373,246,000, and has a significant tax receivable agreement liability of $184,917,000. It has also engaged in substantial share repurchases in recent years. These factors highlight a mix of operational profitability and growth alongside considerable debt and a decrease in overall equity.
Financing Details
European Wax Center does not provide direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee leases or other obligations. However, European Wax Center franchisees are eligible for expedited and streamlined Small Business Administration (SBA) loan processing through the SBA's Franchise Registry Program, which can be accessed at www.franchiseregistry.com.
Performance Metrics
Total US Locations
1,067
Franchised Units
1,062
Corporate Units
5
Avg Square Footage
1,400
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
European Wax Center has no currently pending lawsuits directly involving the franchisor. Their legal history includes several resolved cases: a securities lawsuit against a former officer of an unrelated company (dismissed), a trade secret misappropriation suit (settled) against a former vendor, an equity dispute among parent entities (settled), and a wrongful termination and competitive business arbitration with a former franchisee (settled). There is also an appeal and a pending Chapter 7 bankruptcy case filed by a plaintiff in a trademark infringement dispute from 2019, which is still ongoing as of the FDD's issuance date. Additionally, a governmental investigation by the Washington Attorney General regarding anti-poaching provisions was closed in 2019 after European Wax Center entered into an Assurance of Discontinuance.
Bankruptcy History
European Wax Center has no bankruptcy information required to be disclosed for the franchisor or its key personnel in Item 4 of this FDD. While Item 3 mentions that a plaintiff in a trademark case filed a Chapter 7 bankruptcy case in 2022 that is currently pending, this individual is not the franchisor or a member of its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, European Wax Center franchisees must pay a successor term fee of $5,000, have materially complied with their current franchise agreement, and possess the right to maintain possession of their approved location. They must also have completed all necessary capital expenditures, including remodeling their center to meet current design standards, and satisfied all monetary obligations to European Wax Center and its affiliates. Franchisees cannot be in default more than twice during the initial term and must provide timely written notice (between 12 and 24 months before the term ends) of their intent to renew. Additionally, they must meet the franchisor's then-current qualifications for new franchisees, including training requirements, and sign a general release of claims against European Wax Center and its affiliates. If a franchisee fails to meet these requirements on time, they may be given a 'cure period' but might face increased royalty fees and marketing fund contributions during this time.
Training & Support Program
Franchisor Assistance
European Wax Center provides extensive support to its franchisees both before and after their center opens. Before opening, the franchisor assists with site selection criteria, designates a protected territory, reviews lease terms, and provides specifications for remodeling and equipping the location. Franchisees receive a Start-up Package of products and marketing materials, initial training at the corporate headquarters or virtually, and on-site assistance for their grand opening. Access to a Confidential Operations Manual is also provided. After opening, European Wax Center offers ongoing general advice and guidance via phone, email, and newsletters, conducts periodic site visits for evaluations, and provides ongoing training as needed. They also approve local advertising materials, supply European Wax Center products and marketing materials, and provide updates to the Operations Manual. The franchisor also provides systemwide security monitoring through a managed service provider for IT Network/Cyber Security.
Initial Training Hours
19
Training Location
Corporate office in Plano, Texas or virtually via video conference and self-led eLearning
Ongoing Support
After opening, European Wax Center franchisees receive continuous support through various channels. This includes periodic advice and guidance via telephone, email, and newsletters. The franchisor conducts periodic site visits to provide assistance and guidance, and offers ongoing training programs, which may involve webinars, teleconferences, and video conferences, though travel is minimized. Franchisees are required to attend national conferences held approximately every 18 months. The franchisor also approves local advertising, supplies ongoing European Wax Center products and marketing materials, and provides updates to the Confidential Operations Manual electronically. Systemwide IT Network/Cyber Security Insurance is also procured on behalf of franchisees. Additional launch support or training may be requested for a fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
protected
Staffing Notes
European Wax Center requires each franchised center to always be under the direct, full-time, and daily supervision of a dedicated Center Manager. If the franchisee is an individual, they may be required to serve as the Center Manager; if the franchisee is an entity, they must identify and employ a Center Manager. This manager must successfully complete the franchisor's initial training program before the center opens. Franchisees are solely responsible for all employment-related matters, including hiring, training, scheduling, compensation, and discipline of their staff, which includes aestheticians (wax specialists) and guest services personnel. The franchisor provides training materials for these roles and may require their completion. All staff are considered employees of the franchisee, not the franchisor.