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Description
Investment Icon

What Are the Initial Investment Requirements for a Waxing the City Franchise?

To open a Waxing the City franchise, you should prepare for an initial investment ranging from $325,393 to $603,879. This includes a franchise fee of $42,500, which grants you the rights to operate under the brand. Additionally, you will need to maintain a cash reserve of at least $325,393 and meet a net worth requirement between $200,000 and $500,000. Understanding these financial commitments is crucial before moving forward with your franchise journey.

Fees Icon

What Are the Ongoing Fees Associated with a Waxing the City Franchise?

As a Waxing the City franchisee, you will be responsible for ongoing fees, including a royalty fee of 6% of your gross sales and a marketing fee of 2%. These fees contribute to the overall support and marketing efforts of the brand, helping to drive customer traffic to your location. It's important to factor these costs into your financial projections to ensure sustainable profitability.

Revenue Icon

What Is the Average Revenue Potential for a Waxing the City Franchise?

Waxing the City franchises have shown promising revenue potential, with an average annual revenue per unit of $543,619. The median revenue stands at $496,906, while some units report revenues as low as $4,285 and as high as $1,468,930. This variance highlights the importance of location, management, and local market conditions in determining the success of your franchise.

Breakeven Icon

How Quickly Can You Expect to Break Even with a Waxing the City Franchise?

Franchisees can anticipate breaking even within approximately 12 months of operation, with an investment payback period of around 10 months. This relatively quick return on investment can be appealing for aspiring entrepreneurs looking to enter the beauty and wellness industry. However, achieving these timelines depends on effective management and local market dynamics.

Waxing the City Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$200,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

10 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$42,500
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$325,393 - $603,879
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$325,393 - $603,879
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$543,619
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$496,906
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,468,930
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$4,285
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Health & Beauty Franchises
Category icon A more specific division within the broader industry.

i Category:

Spas
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Chuck Runyon
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

111 Weir Dr., Woodbury, Minnesota 55125
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2012
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Self Esteem Brands

Waxing the City Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

133
The number of locations owned by independent franchisees.

Franchised Units i

133
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 115 124 133
Net Change YoY 9 9
Franchised Units 108 118 133
Net Change YoY 10 15
Corporate Units 7 6 0
Net Change YoY -1 -6
Investment About

Investment Overview

The initial investment for a Waxing the City franchise ranges from $325,393 to $603,879, which includes a franchise fee of $42,500. Potential franchisees should be prepared for ongoing royalty fees of 6% and a marketing fee of 2%. To qualify, an aspiring franchisee must demonstrate a net worth between $200,000 and $500,000.

Potential About

Revenue Potential

Waxing the City franchises have shown promising financial performance, with an average annual revenue of $543,619 per unit. The median revenue stands at $496,906, while the range of annual revenue varies significantly, from as low as $4,285 to as high as $1,468,930, indicating strong growth potential for well-managed locations.

Metrics About

Breakeven and Payback

Franchisees can expect a breakeven period of approximately 12 months, which is relatively quick for the industry. The investment payback period is even shorter, at around 10 months, allowing franchise owners to recoup their initial investment swiftly if the business is run efficiently.

Fees About

Franchise Growth

The Waxing the City franchise network has experienced steady growth. In 2021, there were 108 franchised units, which increased to 118 in 2022, and reached 133 in 2023. This upward trend highlights the brand's expanding presence and increasing market acceptance.

Breakeven About

Financial Metrics

The average operating expenses for a Waxing the City unit total approximately $68,760 annually. Key expenses include rent, marketing, insurance, and wages for employees, which are critical factors for franchisees to manage effectively to maintain profitability.

Units About

Corporate Structure

Waxing the City operates under a corporate structure that includes both franchised and corporate-owned units. As of 2023, all 133 units are franchised, with no corporate units remaining, indicating a strong focus on franchise development and support for individual franchisees in their business operations.

Frequently Asked Questions

The initial investment for a Waxing the City franchise ranges from $325,393 to $603,879, which includes the franchise fee and other startup costs.