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Waxing the City Franchise Costs & Fees

Date of Incorporation: 2003
Franchising Since: 2010
Headquarters: Hastings, Minnesota

Business Description: Waxing the City Worldwide LLC is the franchisor. Waxing the City businesses provide a studio experience focused on body and facial waxing for men and women and the sale of related products.

Franchise Offer: The franchisor offers franchises for the establishment, development and operation of businesses offering facial and body waxing services for men and women and the sale of related products and services (“Waxing Studio”), under the “WAXING THE CITY®” trademark, trade names, service marks and logos.

Financial Assistance: The franchisor does not offer, directly or indirectly, any financing to franchisees to help establish their business. However, the franchisor does have arrangements with a number of third- party equipment lenders who provide financing to franchisees.

Training and Assistance: Before the opening of the Waxing Studio, the franchisor / Principle Operator must attend a 5-day initial training program (Initial Management Training Program). The Initial Management Training Program is held monthly at a designated corporate regional training center, located in Denver, Colorado and Woodbury, Minnesota. There is no charge for the training, but travel and lodging expenses are the responsibility of the franchisee. In addition to the Initial Management Training Program, the franchisor provides an Initial Cerology Training Program. Before the opening of the Waxing Studio, at least one aesthetician must attend and complete to the franchisor’s satisfaction the 4-day Initial Cerology Training Program and obtain WTC’s CerologistTM certification. The training begins with a 1-day e-learning program the aesthetician can take online from their home studio. Up to 4 people can be trained at the same time at the franchisor’s offices in Denver or in Woodbury, MN. Additional people may be sent to the training at a cost of $250 per person. 2 days of additional training is required approximately 6 months after opening and within the first 12 months of opening a Waxing Studio, a Principal Owner must attend at least one “Vitals” program that is intended to maximize the profitability of the business.

Territory: Franchisees will be granted a Protected Territory. The criteria the franchisor uses for determining the boundaries of the territory includes: density of population, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, and natural boundaries. WTC will not place or license, grant or operate franchises in the franchisee’s Protected Territory.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may add one successor term of 10 years.

Obligations and Restrictions: It is not required but recommended the franchisee personally supervises their Waxing Studio. If the franchisee is not the on premise supervisor of the Waxing Studio, they must designate a Principal Operator to serve as the on premise supervisor. The Waxing Studio may only be used for the intended purpose and the franchisee must sell or offer for sale only those services and products which are approved by WTC.

Estimated Number of Units: 27

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $22,500 $30,000
Travel and Living Expenses While Training $3,000 $5,000
Real Estate and Leasehold Improvements $6,000 $267,000
Architect/Design Fees $4,500 $8,000
Furniture, Fixtures and Equipment $1,700 $2,200
Office Supplies $3,000 $3,800
Technology Expenses and Licenses $375 $675
Signage $650 $1,050
Initial Inventory $6,000 $7,000
Grand Opening Advertising $25,000 $50,000
Insurance $2,000 $2,250
Miscellaneous Expenses $4,200 $6,800
Additional Funds and Working Capital for First 3 Months $43,000 $68,000
ESTIMATED TOTAL $121,925 $451,775
Other Fees
Type of Fee Amount
Royalty Fee Greater of (a) the Minimum Royalty Fee ($100/week), or (b) 6% of Gross Revenue each week.
General Advertising and Marketing Fund Contributions 2% of weekly Gross Revenue.
Ongoing Purchases of Wax Products Varies.
Technology Fee $399 per month.
Charitable Contribution $100 per month.
Marketing Materials Varies.
Annual Conference Fee $409 for early registration, increasing to $649 at the Conference.
Waxing Studio Design Fee $2,500
Participation Fees Up to $1,200 for each year the franchisee fails to complete 1,200 continuing engagement credits.
Training No Show Fees $200
Training Compliance Fee $500-$2,500
New Aesthetician Training Fee $250 - $500 per person, plus travel and living expenses.
Ongoing Onsite Training $2,000
Peer Compliance Committee Default Fee Up to $1,000 per violation.
Renewal Fee $6,000, reduced to $5,000 if fee and all signed renewal documents are received at least 30 days before the franchise expires.
Transfer Fee $5,000 or $10,000
Relocation Fee $1,500 plus expenses.
Audit Cost of audit.
Inspection Fee Up to $500 per failed inspection.
Additional Assistance $500 per day, plus travel costs and expenses.
Standard Default Fee Up to $250 per violation.
Insurance Handling Fees $100
Indemnification Varies.
Liquidated Damages $10,000
Cost of Enforcement or Defense Varies.
Interest Lesser of 1.5% per month or highest rate of interest allowed by law.
Late Report Fee $100 per violation.
Insufficient Funds Fee $100 per returned check.
Re-Sale Assistance Program $549, plus $79 per month until business is sold.
Re-Invention Program $0.25 per square foot per month.

The above information has been taken from the FDD of Waxing the City. Year of FDD: 2016

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