Risk Score
Pending analysis
Investment Range
$90,984 - $802,664
Franchise Fee
$43,750
Total US Locations
108
Business Summary
Hello Sugar operates studios that provide a variety of full body waxing, sugaring, and optional laser hair removal services, along with other related products. The business uses distinctive operating procedures and standards under the Hello Sugar trademarks. Hello Sugar offers two formats: "Suites," which are smaller, rented rooms within larger beauty-focused buildings, and "Flagships," which are larger, multi-suite locations exclusively occupied by a Hello Sugar franchisee.
Corporate History
Hello Sugar Franchise, LLC was established as an Arizona limited liability company on May 24, 2021. The company began offering Hello Sugar franchises on September 15, 2021, and focuses solely on franchising its waxing, sugaring, and related services business. Hello Sugar Franchise, LLC has several affiliates that support the franchise system. Hello Sugar Supplies, formed in February 2022, provides essential wax and sugaring products. Dallas Media, LLC, which started in March 2017, offers advertising and marketing services. Hello Sugar Remote, established in July 2023, delivers training and optional management services. Additionally, Hello Sugar Franchise, LLC has an affiliate called Hello Skin Franchise, LLC, formed in January 2025, which is set to offer franchises for injectable services, and Hello Sugar Laser Institute LLC, formed in July 2024, provides laser hair removal training for franchisees.
Financial Overview
Investment Range
$90,984 - $802,664
Franchise Fee (Low)
$43,750
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$7,276
Equipment Costs (High)
$469,641
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Hello Sugar Franchise, LLC's financial condition, as noted in its FDD, raises questions about its ability to provide franchisees with services and support. However, its financial statements show an increase in net income from $110,222 in 2023 to $307,679 in 2024. Cash provided by operating activities also significantly increased from $19,850 in 2023 to $640,580 in 2024, leading to a net increase in cash from $38,516 to $157,481 during the same period. Additionally, related entity notes payable were reduced from $146,799 in 2023 to $0 in 2024.
Financing Details
Hello Sugar Franchise, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, it does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
108
Franchised Units
93
Corporate Units
15
Avg Square Footage
655
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hello Sugar has no litigation history to report.
Bankruptcy History
Hello Sugar has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Hello Sugar franchise, franchisees must be in full compliance with the Franchise Agreement, have no more than three events of default in the 24 months or two in the 12 months preceding the renewal request. They must provide written notice to Hello Sugar Franchise, LLC 6-9 months before the term ends, pay a Renewal Fee of $2,500, and execute Hello Sugar Franchise, LLC's then-current form of Franchise Agreement, which may have materially different terms. Franchisees must also maintain their location's current trade dress and standards, execute a general release, and comply with current qualifications and training requirements, including any additional training.
Training & Support Program
Franchisor Assistance
Hello Sugar Franchise, LLC provides extensive support to its franchisees. Before opening, Hello Sugar Franchise, LLC assists with territory and site selection, provides site approval, reviews and approves leases, and offers specifications for the studio's layout, design, and signage. Franchisees receive access to the confidential Operations Manual and participate in initial virtual and on-site training programs for both management and estheticians. Hello Sugar Franchise, LLC also provides a list of required equipment, supplies, and products. After opening, Hello Sugar Franchise, LLC offers remedial on-site training upon request, though the franchisee is responsible for the associated costs. Franchisees can also receive individualized assistance via telephone, video conferencing, email, or postal service. Hello Sugar Franchise, LLC provides advertising and promotional materials, written specifications for equipment and products, and updated lists of approved suppliers. The franchisor reviews and approves all franchisee-proposed advertising and offers yearly esthetician certification and recertification services. Optionally, Hello Sugar Franchise, LLC may offer additional mandatory or optional training programs, including annual business meetings or conventions, conduct inspections, and recommend pricing for products and services.
Initial Training Hours
84
Training Location
A hybrid model of virtual training for management and on-site training at the franchisee's location for estheticians.
Ongoing Support
Hello Sugar Franchise, LLC provides ongoing support to its franchisees through various channels. This includes remedial on-site training upon request, though the franchisee is responsible for the associated costs. Franchisees can also receive individualized assistance via telephone, video conferencing, email, or postal service. Hello Sugar Franchise, LLC provides advertising and promotional materials, written specifications for equipment and products, and updated lists of approved suppliers. The franchisor reviews and approves all franchisee-proposed advertising and offers yearly esthetician certification and recertification services. Optionally, Hello Sugar Franchise, LLC may offer additional mandatory or optional training programs, including annual business meetings or conventions, conduct inspections, and recommend pricing for products and services.
Franchise Requirements
Ideal Candidate Profile
Hello Sugar Franchise, LLC seeks "Qualified Franchisees" who meet its minimum standards of character, skill, aptitude, business acumen, and financial capacity. While Hello Sugar Franchise, LLC recommends personal supervision for Suite franchisees, business entities must designate an Operating Principal who holds at least a 20% equity interest in the franchisee entity. This Operating Principal is expected to dedicate their best efforts to the success of the Hello Sugar business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Hello Sugar Franchise, LLC defines its franchise territories based on specific geographic and demographic criteria. The minimum territory for either a Flagship or a Suite will be the lesser of 60,000 people or a 2-mile radius around the approved location. Territories can also be identified by a radius, contiguous zip codes, political boundaries, natural boundaries, or other relevant factors as determined by Hello Sugar Franchise, LLC.
Staffing Notes
Hello Sugar Franchise, LLC requires each franchisee to designate an Operating Principal, who must hold at least a 20% equity interest in the franchisee entity and supervise any General Manager. An individual franchisee must serve as their own Operating Principal. Franchisees can appoint a General Manager for day-to-day operations, but the Operating Principal must remain actively involved in overseeing the business. At least one esthetician must successfully complete Hello Sugar Franchise, LLC's Esthetician Training Program before performing services, and all estheticians must recertify annually. Franchisees also have the option to use Hello Sugar Remote for esthetician certifications, sales training, optional training programs, and offsite managerial services.