Franchising Since: 2010
Headquarters: Woodbury, Minnesota
Estimated Number of Units: 150
Franchise Description: Waxing the City Franchisor LLC is the franchisor. The franchisor offers franchises for the establishment, development and operation of businesses offering facial and body waxing services for men and women, as well as other related products and services, such as skincare, eyelash, beauty and brow enhancement, under the “Waxing the City” trademark and other trademarks, trade names, service marks, and commercial symbols it may authorize.
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Territory Granted: When franchisees sign a Franchise Agreement, they will receive the right to operate a single waxing studio at a specific location that the franchisor must approve. Once the site for the waxing studio has been approved, the franchisor will grant the franchisee a protected territory. To identify the protected territory, the franchisor will use mapping and demographic software to identify the boundaries of the protected territory. The determination of the protected territory is within the franchisor’s sole discretion but will typically include a population of no more than 50,000 people based on census projections for up to five years from the date of the Franchise Agreement.
Obligations and Restrictions: While the franchisor does not require that franchisees personally supervise their waxing studio, it recommends that they do so. If franchisees are not the “on premise” supervisor of the waxing studio, then they must designate a principal operator to serve as their on premise supervisor. Franchisees must refrain from using or permitting the use of their waxing studio for any other purpose or activity at any time without first obtaining the franchisor’s written consent. Franchisees must sell or offer for sale only those services and products which are approved by the franchisor and which meet its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques and comply with all of the franchisor’s mandatory standards and specifications.
Term of Agreement and Renewal: The length of the initial franchise term is six years. If franchisees are in good standing and they meet the franchisor’s conditions, they can renew their franchise for an additional five-year period.
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 its franchisees. The franchisor does not participate in any underwriting or lending determinations with respect to any of the financing options made available by any of the lenders. Except as noted, the franchisor does not guarantee any note, lease or other obligation franchisees incur.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $42,500 | $42,500 |
Travel and Living Expenses While Training | $1,400 | $2,640 |
Leasehold Improvements | $79,530 | $306,600 |
3 Months’ Rent and Security Deposit | $20,800 | $25,600 |
Construction Management Fees | $0 | $13,500 |
Architect/Design Fees | $12,750 | $22,875 |
Furniture, Fixtures and Equipment | $30,581 | $47,662 |
Office Supplies | $3,500 | $4,500 |
Technology Package and Licenses | $11,807 | $19,213 |
Interior & Exterior Signage | $18,400 | $26,900 |
Initial Retail Inventory | $5,578 | $6,108 |
Initial Waxing Supply Inventory | $8,078 | $8,372 |
Grand Opening Advertising | $25,000 | $25,000 |
Insurance | $2,550 | $2,850 |
Miscellaneous Expenses | $4,500 | $7,000 |
Additional Funds and Working Capital for First 3 Months | $43,800 | $85,100 |
ESTIMATED TOTAL | $310,774 | $646,420 |
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 | Currently 2% of gross revenue each month. |
Ongoing Purchases of Wax & Service Offering Products | Typically $48,000 to $72,000 per year, but may vary based on purchases. |
Technology Fee | Currently, $799 per month. |
Charitable Contribution | $100 per month. |
Marketing Materials | Currently $600 to $1,000 for first year and thereafter may vary based on purchases. |
Conference Fee | Currently, $799 for first ticket, $499 for additional tickets during early registration and $599 for additional tickets for regular registration. |
Continuing Engagement Credit Fees | Up to $1,200 per waxing studio for each year the franchisee fails to complete 1,200 continuing engagement credits, as outlined in the operations manual. |
Training No Show Fees | Currently, $500, or the actual costs of rescheduling travel, whichever is greater. |
Training Compliance Fee | Currently, $500-$2,500 per month, per violation, until compliant. |
Training Fee for Each New Aesthetician or Cosmetologist | Currently no charge for virtual support. The franchisor reserves the right to charge up to $250 per hour for virtual support in the future and those charges may be paid to the franchisor or a third party. If support is provided by us in-person at any location, the current fee is $1,000 -$1,500 per day, plus actual travel and lodging expenses per trainer. The franchisor may increase this fee, not to exceed $3,000 per day, plus actual travel and lodging expenses per trainer. |
Additional Services Training | Currently, no charge for aestheticians who attend virtual training, if offered. The franchisor reserves the right to charge for virtual additional services training provided in a virtual format and those charges may be paid to the franchisor or to a third party. If training is provided on-site at the franchisee’s location the franchisor will charge $1,000 - $1,500 per day, plus actual travel and lodging expenses per trainer for additional waxing services training. The franchisor may increase this fee, not to exceed $3,000 per day, plus actual travel and lodging expenses per trainer. |
Retail Training | Currently, the franchisor does not charge a fee for retail training but may charge a fee of up to $250 per hour in the future. |
Additional Customer Experience / Operations Training | Currently, either $1,000 or $1,500 per day, per representative, plus reimbursement of the franchisor’s cost of travel, lodging and meals. The franchisor may increase this fee, not to exceed $3,000 per day, plus actual travel and lodging expenses per representative. |
Leadership Training | Currently, the franchisor does not charge a fee for leadership training but may up to $1,500 per day per representative, plus reimbursement of its cost of travel, lodging and meals. The franchisor may increase this fee, not to exceed $3,000 per day, plus actual travel and lodging expenses per representative. |
Lash Lift & Lamination Certification | Currently, $100 - $125 per Cerologist, per certification. |
Renewal Fee | $6,000, reduced to $5,000 if the franchisor receives the fee, and all signed renewal documents, at least 30 days before the franchise expires. |
Transfer Fee | $7,500 or $12,000 |
Relocation Fee | $1,500 plus the franchisor’s expenses. |
Audit | Cost of audit. |
Inspection Fee | Currently, up to $500 per failed inspection. |
Additional On-site Training | Currently, $1,000 - $1,500 per day plus travel costs and expenses, per trainer. |
Compliance Fee | Up to $500 per violation per month. |
Insurance Handling Fees | Currently, $100. |
Indemnification | Will vary under circumstances. |
Liquidated Damages | $10,000 |
Cost of Enforcement or Defense | All costs including accounting and attorneys’ fees, will vary under the circumstances. |
Interes | 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 check that franchisees submit to the franchisor that is returned for insufficient funds, and $100 each time that the franchisor is unable to collect via EFT due to insufficient funds. |
Re-Invention Program | $0.50 per square foot per month. |
Recertification or Re-Training Fee | $1,000 - $1,500 per day, plus actual travel and lodging expenses per trainer. |
Additional Email Addresses | $20 per month for each additional 5 email addresses and mailboxes. |
Grand Opening and Ramp Up Plan | $25,000 |
Local Advertising | $1,500 per month. The franchisor may charge a one-time setup fee up to $350 if the franchisor conducts the local marketing on the franchisee’s behalf. |
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