Waxing the City

The franchise fee is $42,500 standard, with discounts for veterans ($38,250), existing franchisees ($37,500), and veteran existing franchisees ($33,750). Multi-location development agreements are available: 3 locations for $97,500 total, 5 locations for $150,000 total.

Total investment of $311K–$646K is dominated by two costs: leasehold improvements ($80K–$307K, reflecting significant variability in space condition and landlord contribution) and furniture, fixtures, and equipment ($31K–$48K for treatment tables, reception, and studio build-out). Architect and design fees are a required $12,750–$22,875. Grand opening advertising of $25,000 is a fixed required spend. Interior and exterior signage runs $18,400–$26,900. Technology package and licenses add $11,807–$19,213 upfront. Three months' working capital rounds out the range at $43,800–$85,100.

The required initial inventory purchase (waxing supplies $8,078–$8,372 and retail products $5,578–$6,108) must be purchased from the franchisor.

Ongoing: 6% royalty of gross sales (minimum $100/week after the first year), 2% advertising fund, $799/month technology fee ($9,588/year), and a local advertising minimum of $1,500/month ($18,000/year). At median revenue of $489K, the royalty alone is $29,340/year; combined with the 2% ad fund ($9,780) and the technology fee ($9,588), you're spending $48,708/year in franchisor fees before the local advertising requirement. The local advertising minimum adds another $18,000, bringing the total to $66,708/year — roughly 14% of median revenue before accounting for staff, rent, and supplies.

Waxing the City discloses detailed Item 19 data for 134 studios that were open for the full 2024 calendar year (16 studios were excluded as permanently closed during the period).

FY2024 all 134 reporting studios: - Average gross sales: $514,339 - Median gross sales: $488,739 - Highest: $1,298,091 - Lowest: $73,049 - 46% of studios met or exceeded the average

Additional granular metrics disclosed: - Club Orange membership revenue: average $188,954 per studio (37% of total revenue) — recurring, relatively predictable - Average monthly unique customers: 617 - Average ticket: $62 - Retail revenue: average $28,558 per studio (attach rate 15%)

The membership model is meaningful. Averaging $189K in recurring subscription revenue provides a revenue floor — a studio with 300+ active Club Orange members can cover most fixed costs even in slow months. This is a genuine differentiator versus competitors without membership programs.

With median revenue of $489K and estimated operating expenses (labor ~45%, supplies ~10%, rent ~15%, franchisor fees ~14%), operating margin might range 10–16%, or $49K–$78K pre-owner-comp at median revenue. Not exceptional for a $311K–$646K investment, but improved significantly for top-quartile performers.

Waxing the City's system has grown consistently but modestly: from 121 studios at the start of 2022, to 138 (end 2022), to 148 (end 2023), to 151 (end 2024). That's 30 net new studios in three years — about 8% cumulative growth, or roughly 10 net new studios per year.

The slow growth rate is not necessarily negative — it may reflect selective franchisee qualification rather than lack of demand. The FDD notes 16 studios were permanently closed during 2024 and excluded from the Item 19 sample, which is a meaningful closure number relative to the 151 total — roughly a 10% attrition rate in the year. Whether these are new studio failures or aging locations reaching end of lease is important context to explore in franchisee validation calls.

Parent company Purpose Brands also owns The Joint Chiropractic and other personal services franchises, providing operational infrastructure. The dedicated waxing studio model (no hair, no nails — just waxing) benefits from operational simplicity and high repeat-visit frequency.

The pre-open royalty minimum is an unusual risk provision: if your studio is not open 12 months after signing, the $100/week royalty minimum begins regardless. This incentivizes fast buildout but penalizes franchisees who encounter permitting delays or construction challenges — both common in leasehold improvement scenarios.

The $799/month technology fee is non-negotiable and creates a meaningful fixed cost floor. Combined with the $1,500/month local advertising minimum, you're committed to $2,299/month ($27,588/year) in fixed fees before opening a single treatment room.

The grand opening advertising requirement of exactly $25,000 is a fixed required spend — not a range. Budget this as a certain cost.

Transfer fees of $10,000–$20,000 and a renewal fee of $5,000 are reasonable by category standards. The system's modest size (151 studios) means resale liquidity is limited — the buyer pool for existing Waxing the City studios is narrower than for nationally recognized brands.

The 16 permanently closed studios excluded from Item 19 data deserve investigation. Ask the franchisor what common characteristics those closures shared — market size, location quality, operator experience.