Sugaring NYC Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$138,750 - $293,200
Franchise Fee
$40,000
Min Cash Required
$25,000
Total US Locations
132
Business Summary
Sugaring NYC operates a beauty salon that specializes in hair removal using a unique organic sugaring paste, which offers a less painful and longer-lasting experience. In addition to sugaring services, Sugaring NYC also provides lash lifts and other beauty treatments. Franchisees have the option to offer laser hair removal services.
Corporate History
Sugaring NYC, operating under the legal entity Nartov Ventures LLC, was officially formed in Florida on October 1, 2017. The company began offering franchises in December 2017. Before launching the franchise system, the CEO, Dmytro Nartov, had already established and operated several Sugaring NYC businesses. These company-owned outlets included locations in New York (since February 2015), Boston (since March 2017), and Chicago (since November 2017), all run under affiliated entities such as Sugaring USA, LLC, Sugaring Boston, LLC, and Sugaring Chicago, LLC.
Financial Overview
Investment Range
$138,750 - $293,200
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$25,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$43,300
Equipment Costs (High)
$244,500
Working Capital
$27,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sugaring NYC's financial statements show an increasing accumulated deficit. As of December 31, 2024, the company had an accumulated deficit of $5,298,054, which grew from $2,879,437 in 2023 and $2,257,438 in 2022. While Sugaring NYC reported a net income of $1,071,178 in 2024, member distributions exceeded this, contributing to the growing deficit. The independent auditor provided an unqualified opinion and did not raise substantial doubt about Sugaring NYC's ability to continue as a going concern.
Financing Details
Sugaring NYC does not offer any direct or indirect financing to its franchisees, nor does it guarantee any franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding through third-party lenders.
Performance Metrics
Total US Locations
132
Franchised Units
124
Corporate Units
8
Avg Square Footage
1,300
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Sugaring NYC has been involved in two litigation cases. One case, Mariama S. Camara v. Sugaring NYC, was filed on September 25, 2024, by a franchisee of an unopened location. The plaintiff is seeking a partial refund of her franchise fee and the motion remains pending. The other case, L'Oreal USA Creative, Inc. et al. v. Dmytro Nartov, Nartov Ventures LLC et al., was filed on July 30, 2019. In this concluded action, L'Oreal alleged trademark counterfeiting and infringement. The dispute was resolved on November 21, 2019, with Sugaring NYC agreeing to a final judgment and permanent injunction that prohibited the sale of products bearing certain L'Oreal trademarks.
Bankruptcy History
Sugaring NYC has no bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Sugaring NYC franchisees must have fully complied with all material provisions of their current agreement, made necessary capital expenditures to maintain system uniformity, satisfied all monetary obligations to Sugaring NYC and its affiliates, and not be in default of any agreement with the franchisor. Franchisees must also provide written notice of their intent to renew 9 to 12 months before the agreement expires, sign Sugaring NYC's then-current franchise agreement (which may have different terms and conditions), meet current franchisee qualifications, agree to new training requirements, sign a general release of claims against the franchisor, and pay a renewal fee of $5,000.
Training & Support Program
Franchisor Assistance
Before opening, Sugaring NYC provides an initial training program and guidance for establishing the franchised business. This includes assistance with setting prices, obtaining equipment, signs, fixtures, initial inventory, and supplies by providing specifications or a list of approved suppliers. The franchisor also offers consulting on hiring techniques and access to the Operations Manual. After the business opens, Sugaring NYC offers ongoing advice and general guidance via telephone and electronic correspondence, makes ongoing training available as needed, and provides updates to the Operations Manual. The franchisor or its representatives may also conduct periodic, announced or unannounced, visits to provide consultation and assistance.
Initial Training Hours
96
Training Location
Franchisor headquarters in West Palm Beach, FL, or other designated franchisor training centers in Royal Palm Beach, FL, including virtual sessions and on-site training at the franchisee's location.
Ongoing Support
After opening, Sugaring NYC offers advice, discusses problems, and provides general guidance to franchisees via telephone and electronic correspondence regarding planning and operating the franchised business. The franchisor also makes ongoing training programs, seminars, conferences, conventions, or webinars available as it deems necessary, which franchisees may be required to attend up to twice per year. Additionally, Sugaring NYC provides franchisees with modifications to the Operations Manual as they are released. Franchisor representatives may also conduct periodic, announced or unannounced, visits to franchisee locations to offer consultation, assistance, and guidance on various operational and management aspects.
Franchise Requirements
Ideal Candidate Profile
Sugaring NYC looks for qualified individuals with strong financial resources and business experience. For those interested in becoming area developers, industry experience and solid marketing and sales plans are also considered important factors. A franchisee or their designated manager must dedicate at least 40 hours per week to the day-to-day operations of the franchised business, implying a hands-on or highly supervisory role.
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
exclusive
Staff Count
5
Territory Size Requirements
Sugaring NYC grants franchisees an exclusive marketing territory defined as the lesser of a 3-mile radius from the Sugaring NYC franchised business or a land area with a population of 25,000 people. The franchisor reserves the right to define territory size on a case-by-case basis, considering factors like population density, which may result in smaller territories in major metropolitan areas.
Staffing Notes
Sugaring NYC requires that the franchised business always operates under the direct supervision of either the franchisee or an approved Designated Manager who has successfully completed the franchisor's training program, dedicating no less than 40 hours per week. The business operations require staff to assist, with additional staff potentially being hired as the business grows. Franchisees must ensure that all services, especially waxing and hair removal, are performed only by licensed aestheticians or cosmetologists where required by state laws and regulations.