Sugaring LA Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$313,250 - $431,500
Franchise Fee
$35,000
Total US Locations
8
Business Summary
Sugaring LA operates studios specializing in full body hair removal using a sugaring method with chemical-free, mostly plant-based products that are rich in nutrients, antioxidants, anti-inflammatory, and antiseptic qualities. These studios also offer proprietary retail products under the Sugaring LA brand.
Corporate History
Sugaring LA Franchise, LLC, the current franchisor, was formed in Delaware on December 5, 2022. It operates solely under its corporate name and the Sugaring LA brand. The predecessor, SugaringLA Franchise, Inc., was incorporated in July 2021 for the purpose of offering franchises but no longer does. The underlying business concept, SugaringLA, LLC, an affiliate, was formed on August 1, 2012, in California to offer full body hair removal services. Sugaring LA began offering franchises in March 2023.
Financial Overview
Investment Range
$313,250 - $431,500
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$160,100
Equipment Costs (High)
$235,900
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Sugaring LA's financial statements for the year ending December 31, 2024, indicate a net loss of $1,229,459 and a members' deficit of $1,314,021. The financial statements were prepared assuming Sugaring LA will continue operations. Franworth, LLC, a minority member, has historically provided and pledged to continue providing the necessary working capital to meet short-term obligations and offset operating losses, with management believing this support will enable operations through March 10, 2026. The auditor's report mentions conditions that raise substantial doubt about Sugaring LA's ability to continue as a going concern.
Financing Details
Sugaring LA does not offer any direct or indirect financing to its franchisees. Additionally, Sugaring LA does not guarantee any franchisee's notes, leases, or other obligations related to the business.
Performance Metrics
Total US Locations
8
Franchised Units
4
Corporate Units
4
Avg Square Footage
1,150
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sugaring LA has no litigation or other dispute resolution that is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
Sugaring LA has no bankruptcy information that is required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Sugaring LA franchisees must notify the franchisor between 180 days and 12 months before their current term expires. They must be in good standing, have no defaults, and have paid all financial obligations to Sugaring LA, its affiliates, and suppliers. Franchisees are required to renovate their studio to meet current image standards, prove they can possess the premises (or secure an approved alternate site), and comply with current qualifications and training requirements. They must sign Sugaring LA's then-current franchise agreement, which may have different terms including royalty and marketing fees, sign a general release, and pay a renewal fee of $3,000.
Training & Support Program
Franchisor Assistance
Sugaring LA provides pre-opening assistance, including approving the site selection area and specific studio site, and admitting two individuals to its initial two-stage training program (business training and on-site studio opening/sugarist training). Sugaring LA also loans a digital copy of its Manuals, offers pre-opening consultation on development, layout, equipment, recruiting, training, purchasing, and initial local marketing strategy. During operation, Sugaring LA offers ongoing consultation regarding new services, product developments, operations, management, advertising, and financial advice. It also communicates information about approved and designated suppliers.
Initial Training Hours
88
Training Location
Ann Arbor, Michigan and franchisee's studio
Ongoing Support
Sugaring LA provides ongoing consultation and advice, including updates on new services and products, instruction on operating and managing the studio, and guidance on advertising, marketing, and finances. This support can be delivered through studio visits, meetings, seminars, conferences, and electronic or printed materials. Franchisees are informed about approved and designated suppliers. The managing owner, general manager, and other designated employees must attend additional mandatory training, courses, and seminars as required. All sugarists must meet Sugaring LA's continuing education requirements. If a studio fails two consecutive quality inspections, Sugaring LA may require additional on-site training. Franchisees or their representatives are also required to attend a designated annual convention.
Franchise Requirements
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
Protected
Territory Size Requirements
Sugaring LA grants franchisees a 'Protected Area' around their approved studio location, typically a circle, containing a population of up to 50,000 individuals, and not exceeding a maximum diameter of six miles (or a three-mile radius). This Protected Area, however, excludes 'Closed Markets' such as hotels, airports, college campuses, and military bases, where Sugaring LA reserves the right to operate or license others to operate.
Staffing Notes
Sugaring LA requires franchisees to maintain a competent, conscientious, fully certified, and trained staff, including sugarists. Employees and independent sugarists must ensure good customer relations, provide competent, prompt, courteous, and knowledgeable service, and adhere to Sugaring LA's minimum standards, uniform requirements, and appearance guidelines. Sugarists must also comply with mandated continuing education requirements set by Sugaring LA.