Waxing The City Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$325,393 - $603,879
Franchise Fee
$33,750
Total US Locations
150
Business Summary
Waxing the City Franchisor LLC offers franchises for Waxing the City studios, which are businesses focused on providing body and facial waxing services for both men and women. These studios also sell related beauty products and services like skincare, eyelash, beauty, and brow enhancements, all operating under the Waxing the City trademark.
Corporate History
Waxing the City Franchisor LLC was formed in October 2021 as a Delaware limited liability company. It acquired the Waxing the City brand and its existing U.S. franchise agreements from its predecessor, Waxing the City Worldwide, LLC (WCWLLC), as part of a securitization transaction. WCWLLC's predecessor originally began offering Waxing the City franchises in May 2010. WCWLLC itself operated company-owned studios and offered franchises from October 2012 until November 2021 when the brand was transferred. After the transfer, Waxing the City Franchisor LLC became the sole franchisor for all existing and future Waxing the City locations in the U.S.
Financial Overview
Investment Range
$325,393 - $603,879
Franchise Fee (Low)
$33,750
Franchise Fee (High)
$42,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$146,812
Equipment Costs (High)
$392,455
Working Capital
$54,607
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Waxing the City Franchisor LLC's financial obligations are guaranteed by its affiliate, SEB Franchising Guarantor LLC (SFG). SFG is a special purpose entity with $5 million in cash and cash equivalents, and its financial statements show a stable position with minimal general and administrative expenses offset by contributions. This indicates that Waxing the City Franchisor LLC has dedicated financial backing for its guarantor responsibilities. Additionally, Anytime Fitness, LLC, which acts as the manager for Waxing the City, has substantial revenues and net income, despite a negative member's equity due to certain financial transactions, and provides significant support and services to franchisees.
Financing Details
Waxing the City Franchisor LLC does not offer direct financing to its franchisees. However, it has arrangements with third-party lenders. Geneva Capital, LLC offers equipment financing up to $100,000 as a lease, typically requiring 1 advance payment of up to 20% and a security deposit. Lease terms range from 12 to 36 months, and an option to purchase equipment at fair market value at the end of the lease. Guidant Financial offers a program that allows franchisees to use retirement funds to buy a business for a fee of $4,995 and an annual administration fee of $149 per month. Guidant also assists with SBA loans for a consulting fee of $2,500, unsecured financing up to $125,000 (requiring a minimum credit score of 680), equipment leasing (10% down, interest rates 6.99% to 13.90% for up to 60 months), and Portfolio Loans leveraging non-retirement investments.
Performance Metrics
Total US Locations
150
Franchised Units
150
Corporate Units
0
Avg Square Footage
1,800
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Waxing the City Franchisor LLC itself does not have any current or recent litigation. However, Item 3 of the FDD discloses two past legal actions from 2009 involving an affiliate, The Bar Method Inc., related to offering franchises without proper registration in Illinois and New York. Both cases were resolved in 2009, with The Bar Method Inc. agreeing to consent decrees and paying small penalties, and the operators not accepting rescission offers. These cases are old and do not directly involve the Waxing the City brand or its current operations.
Bankruptcy History
Waxing the City Franchisor LLC itself has no bankruptcy history. However, its Chief Financial Officer, R. John Pindred, was an officer of Family Christian, LLC from 2004 to 2014. That company filed for Chapter 11 bankruptcy in February 2015, approximately five months after Mr. Pindred had left the company. The bankruptcy case was confirmed as a plan of liquidation in August 2015 and closed in August 2016.
Agreement Terms
Initial Term
6 years
Renewal Term
5 years
Renewal Conditions
To renew their Waxing the City franchise, franchisees must provide 210 days' written notice before the agreement ends. They must be in full compliance with all agreements with Waxing the City Franchisor LLC and its affiliates, without a history of repeated defaults. Franchisees are required to renovate and re-equip their studio to meet the brand's then-current standards. A renewal fee of $6,000 (reduced to $5,000 if paid at least 30 days in advance) is due. Franchisees must sign a new franchise agreement, which may have different terms, including a potentially smaller protected territory. They also need to show they have the right to occupy their location for the renewal term, and their staff must complete any required refresher training. Finally, franchisees must sign a general release of claims against Waxing the City Franchisor LLC and its affiliates.
Training & Support Program
Franchisor Assistance
Waxing the City Franchisor LLC provides comprehensive assistance to its franchisees. Before opening, Waxing the City helps with site location approval, delineating a protected territory, and providing access to an online operations manual. Franchisees receive a prototype floor plan, equipment lists, and a Compliance Drawing for their studio layout. Initial training is provided for the Principal Operator and a Principal Owner, and support for Initial Cerology Training is given to aestheticians. Waxing the City also sells initial supplies, marketing materials, a retail product package, and furniture/fixtures/equipment. Franchisees also have a direct contact for pre-opening support. After opening, ongoing assistance includes a representative available by phone, online, or email to discuss operational issues. Waxing the City arranges mystery shopping services, maintains an Internet website and provides templates for franchisees' webpages, and offers additional services training. Waxing the City also administers a General Advertising and Marketing Fund for system-wide promotion.
Initial Training Hours
24
Training Location
Virtual or at corporate offices in Woodbury, Minnesota, or other designated locations
Ongoing Support
Waxing the City Franchisor LLC provides various ongoing support services. Franchisees have access to a representative by telephone, online, or email during business hours for operational issues. Mystery shopping services are arranged periodically, with results provided to franchisees for service improvement. Waxing the City maintains an Internet website and provides templates for franchisee webpages. Additional services training and continuing education programs like 'Vitals' training (offered every other year) and 'Wax Ed' (optional soft-skills training) are available. Franchisees are also required to obtain 1,200 continuing engagement credits annually, tied to system participation. Annual recertification training for Cerologists may also be required in the future.
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
Waxing the City Franchisor LLC defines protected territories based on a population of no more than 50,000 people, using census projections up to 5 years from the Franchise Agreement date. The specific boundaries for each Waxing the City studio are determined using mapping and demographic software, considering factors like traffic patterns, natural boundaries, population growth trends, affluence, density of businesses and residences, and driving time. Territories may be described by a map or an area surrounding the location, and may not necessarily be a specific radius.