Risk Score
Pending analysis
Investment Range
$233,150 - $449,000
Franchise Fee
$34,000
Min Cash Required
$25,000
Total US Locations
22
Business Summary
Waxxpot operates franchises offering body and facial waxing services for both men and women. These services include a wide range of waxing, from brows to Brazilians, and are provided under the Waxxpot trademark. The business also sells related products alongside its beauty and personal care services.
Corporate History
The Waxxpot Group Franchise, LLC was formed in Ohio on February 3, 2020, and began offering franchises in March 2020. Before that, its affiliate, The Waxxpot Group, LLC, started operating company-owned stores in April 2016. This affiliate currently runs seven company-owned locations in Ohio and Texas, and also has partial ownership in one location in Georgia and one in Ohio.
Financial Overview
Investment Range
$233,150 - $449,000
Franchise Fee (Low)
$34,000
Franchise Fee (High)
$49,500
Minimum Cash Required
$25,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$90,750
Equipment Costs (High)
$251,500
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Waxxpot's financial statements reflect concerns about the franchisor's financial ability to provide services and support. The auditors have concluded there are conditions or events that raise substantial doubt about Waxxpot's ability to continue as a going concern for a reasonable period of time. This is due to the start-up nature of the organization and the possibility that management may not achieve its sales objectives.
Financing Details
Waxxpot does not offer any direct or indirect financing to its franchisees. Additionally, Waxxpot does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
22
Franchised Units
8
Corporate Units
14
Avg Square Footage
1,400
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Waxxpot has no litigation to report. The franchisor states that no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Waxxpot has no bankruptcy history to report. The franchisor states that no bankruptcy is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise agreement, Waxxpot franchisees must provide written notice 6 to 12 months before the term ends, be in good standing with no defaults, and have satisfied all governmental inspections during the term. They must also execute a new franchise agreement with the terms then being offered to new franchisees, complete any required capital improvements to their location, pay a renewal fee of $10,000, and fulfill any other reasonable conditions, including signing a general release of claims.
Training & Support Program
Franchisor Assistance
Waxxpot provides franchisees with a range of assistance. Before opening, Waxxpot helps with site selection (approving proposed locations within 30 days of submission, and potentially visiting one site at no extra cost), lease review (for legal advice, franchisees must use their own attorney), and prototype floor plans for setting up the location. Waxxpot also provides a list of approved suppliers for fixtures, equipment, and a Waxxpot Design Package. Initial training includes a mandatory 5-day Initial Management Training Program for the Principal Operator and up to two additional persons at its corporate training center in Columbus, Ohio. Waxxpot also provides an Initial Waxx Specialist Training Program for aestheticians, which can be done on-site. Ongoing assistance includes telephone or online support during business hours, maintaining a location page on the Waxxpot website, and making additional training available as needed. Waxxpot also maintains and administers a Branding Fund for marketing and advertising programs and a Technology Fee for technology services and development.
Initial Training Hours
67
Training Location
Corporate headquarters in Columbus, Ohio
Ongoing Support
Waxxpot provides ongoing assistance to its franchisees primarily through reasonable telephone and email support during normal business hours. The franchisor also maintains a location page for each franchise on the Waxxpot website. Additional training sessions are made available to familiarize franchisees, their management team, and employees with system changes and updates, as well as for new aestheticians. Waxxpot administers a Branding Fund for marketing and advertising programs and a Technology Fee for technology services. While optional, additional on-site training can be requested for a fee of $500 per day plus travel expenses for the representative.
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
Waxxpot territories are defined based on factors like population density, socio-economics, lifestyle attributes, residential and business density, and traffic patterns. The territory typically ranges from approximately one-tenth of a mile in densely populated metropolitan areas to three miles in small towns. Most protected territories are defined as a circle with the franchise location at its center, containing the lesser of either a 1.5-mile radius or 50,000 people.
Staffing Notes
Waxxpot requires franchisees to designate a Principal Operator who will serve as the on-premises supervisor and complete initial training. The franchise also requires all aestheticians to complete a 5-day Waxx Specialist Training Program. Staff roles generally include wax specialists, front desk team members, and general managers. Employees who have access to confidential information must sign non-disclosure and non-competition agreements.