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Waxing the City Franchise ProfileHealth & Beauty Franchises > Spas |
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.
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.
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.
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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Waxing the City Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| 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 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.
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.
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.
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.
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.
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.