In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Waxing the City franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Waxing the City franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Waxing the City outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Waxing the City franchise opportunity

Section V – Presentation and analysis of Waxing the City’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross revenues for the top 1/4, second 1/4, third 1/4, bottom 1/4, and all 134 franchised Waxing the City studios that were open and operating for the entire 12 month period ended December 31, 2023

• 2023 average, median, highest, and lowest Club Orange gross revenues for the top 1/4, second 1/4, third 1/4, bottom 1/4, and all 134 franchised Waxing the City studios that were open and operating for the entire 12 month period ended December 31, 2023

• 2023 average and median monthly unique customers for the 134 franchised Waxing the City studios that were open and operating for the entire 12 month period ended December 31, 2023

• 2023 average, median, highest, and lowest ticket gross revenues for the 134 franchised Waxing the City studios that were open and operating for the entire 12 month period ended December 31, 2023

• 2023 average, median, highest, and lowest retail gross revenues and retail attach rate for the 134 franchised Waxing the City studios that were open and operating for the entire 12 month period ended December 31, 2023

Section VI – Key ratios, comparables, computations, and analyses for the Waxing the City franchise opportunity (exclusive content for Platinum subscribers)

Section I – Waxing the City Franchise Costs

• Initial Franchise Fee:  $42,500
• Travel and Living Expenses While Training:  $1,650 to $2,350
• Leasehold Improvements:  $79,530 to $283,530
• 3 Months’ Rent and Security Deposit:  $20,123 to $25,153
• Construction Management Fees:  $0 to $13,500
• Architect/Design Fees:  $10,750 to $16,375
• Furniture, Fixtures, and Equipment:  $40,578 to $55,450
• Office Supplies:  $3,500 to $4,500
• Technology Package and Licenses:  $8,172 to $26,718
• Interior and Exterior Signage:  $18,532 to $26,757
• Initial Retail Inventory:  $5,950 to $6,650
• Initial Waxing Supply Inventory:  $6,000 to $7,000
• Grand Opening Advertising:  $25,000
• Insurance:  $2,550 to $2,850
• Miscellaneous Expenses:  $6,103 to $10,787
• Additional Funds and Working Capital for First 3 Months:  $54,455 to $54,759
• Total Estimated Waxing the City Franchise Costs:  $325,393 to $603,879

Section II – Waxing the City’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $33,750 to $42,500
• Royalty Fee:  greater of (a) the Minimum Royalty Fee ($100/week), or (b) 6% of Gross Revenue
• General Advertising and Marketing Fund Contributions:  currently 2% of your Gross Revenue each month
• Local Advertising:  $1,500 per month. Waxing the City may charge a one-time setup fee up to $350 if it conducts the local marketing on your behalf.

Section III – Number of Franchised and Company-Owned Waxing the City Outlets

Franchised

2021

• Outlets at the Start of the Year:  108
• Outlets at the End of the Year:  118
• Net Change:  +10

2022

• Outlets at the Start of the Year:  118
• Outlets at the End of the Year:  133
• Net Change:  +15

2023

• Outlets at the Start of the Year:  133
• Outlets at the End of the Year:  150
• Net Change:  +17

Company-Owned

2021

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2022

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  6
• Net Change:  -1

2023

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  0
• Net Change:  -6

Section IV – News Updates on the Waxing the City Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Waxing the City Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, there were 150 franchised Waxing Studios in the Waxing the City System. The information in the charts below is taken from the 134 franchised Waxing Studios that were open and operating for the entire 12 month period ended December 31, 2023.

• WCWLLC sold 6 company-owned studios to franchisees in July 2023 and Waxing the City considers these 6 studios as franchised Waxing Studios for the 12 month period ended December 31, 2023.

• Waxing the City excluded 5 Waxing Studios that permanently closed during the 12 month period ended December 31, 2023. Of those Waxing Studios, none closed before operating for at least 12 months.

• Gross Revenues, as used in this Item 19, includes all revenues generated by the Waxing Studio and reported to Waxing the City in 2023, excluding bona fide refunds, credits given or allowed to customers for the return of merchandise, and amounts collected from customers and remitted to a governmental taxing authority in satisfaction of sales taxes; however, chargebacks are not deducted from the calculation of Gross Revenues.

• This is consistent with the definition of Gross Revenues in Waxing the City’s Franchise Agreement. Waxing the City has denoted in the charts below those instances where Gross Revenues are calculated specific to a certain item, such as a Ticket or Club Orange memberships.

Part 1 – Average Annual Gross Revenues Information

All 134 Studios

• Average Gross Revenues:  $543,619
• Number/Percentage That Met or Exceeded Average Gross Revenues:  56/42%
• Median Gross Revenues:  $496,906
• Highest Gross Revenues:  $1,468,930
• Lowest Gross Revenues:  $103,262

Top 1/4 (33 Studios)

• Average Gross Revenues:  $884,681
• Number/Percentage That Met or Exceeded Average Gross Revenues:  11/33%
• Median Gross Revenues:  $837,121
• Highest Gross Revenues:  $1,468,930
• Lowest Gross Revenues:  $690,502

Second 1/4 (34 Studios)

• Average Gross Revenues:  $587,685
• Number/Percentage That Met or Exceeded Average Gross Revenues:  17/50%
• Median Gross Revenues:  $590,429
• Highest Gross Revenues:  $684,094
• Lowest Gross Revenues:  $497,094

Third 1/4 (34 Studios)

• Average Gross Revenues:  $438,355
• Number/Percentage That Met or Exceeded Average Gross Revenues:  13/38%
• Median Gross Revenues:  $434,446
• Highest Gross Revenues:  $496,717
• Lowest Gross Revenues:  $378,303

Bottom 1/4 (33 Studios)

• Average Gross Revenues:  $265,608
• Number/Percentage That Met or Exceeded Average Gross Revenues:  18/55%
• Median Gross Revenues:  $276,982
• Highest Gross Revenues:  $366,075
• Lowest Gross Revenues:  $103,262

• Average Gross Revenues of the Waxing Studios is calculated by determining the total amount of Gross Revenues of the Waxing Studios in the data set for the time period in the data set and dividing that amount by the total number of Waxing Studios in the data set.

Part 2 – Club Orange Information

All 134 Studios

• Average Gross Revenues:  $188,210
• Number/Percentage That Met or Exceeded Average Gross Revenues:  59/44%
• Median Gross Revenues:  $173,752
• Highest Gross Revenues:  $620,799
• Lowest Gross Revenues:  $52

Top 1/4 (33 Studios)

• Average Gross Revenues:  $327,506
• Number/Percentage That Met or Exceeded Average Gross Revenues:  16/48%
• Median Gross Revenues:  $322,002
• Highest Gross Revenues:  $620,799
• Lowest Gross Revenues:  $130,190

Second 1/4 (34 Studios)

• Average Gross Revenues:  $198,719
• Number/Percentage That Met or Exceeded Average Gross Revenues:  19/56%
• Median Gross Revenues:  $204,539
• Highest Gross Revenues:  $367,924
• Lowest Gross Revenues:  $634

Third 1/4 (34 Studios)

• Average Gross Revenues:  $150,062
• Number/Percentage That Met or Exceeded Average Gross Revenues:  17/50%
• Median Gross Revenues:  $152,166
• Highest Gross Revenues:  $256,264
• Lowest Gross Revenues:  $52

Bottom 1/4 (33 Studios)

• Average Gross Revenues:  $77,392
• Number/Percentage That Met or Exceeded Average Gross Revenues:  12/36%
• Median Gross Revenues:  $74,480
• Highest Gross Revenues:  $166,638
• Lowest Gross Revenues:  $25,084

• Club Orange refers to the Waxing the City Club Orange membership program, which is a monthly subscription service that provides the member with discounts on designated services and retail products, and other benefits in exchange for the payment of a monthly subscription fee. The Gross Revenues information in this chart is the Gross Revenues from payment of these monthly fees.

• Of the 134 Waxing Studios, Waxing the City had 1 Waxing Studio that did not participate in the Club Orange program, but Waxing the City included that Studio in the data.

• Club Orange Annual Gross Revenues are calculated in the same manner as Gross Revenues are calculated in the first chart above, except that the data set is made up of those Waxing Studios that collected Gross Revenues for Club Orange membership subscription fees.

• 34.62% of the total Gross Revenues of the Waxing Studios in the data set were attributable to monthly subscription payments for the Club Orange memberships of the franchised Waxing Studios in the data set. 68 or 51% of the Waxing Studios in the data set met or exceeded this percentage. This percentage was determined by dividing the total Gross Revenues attributable to monthly subscription payments for the Club Orange memberships of the Studios in the data set by the total Gross Revenues of the Studios in the data set.

Part 3 – Average Monthly Unique Customers

• Waxing the City also tracks unique customers for its Waxing Studios.

• Monthly unique customers per Studio is the number of customers in a month who paid for a good, service, or membership at that visit, but disregards repeat visits in the same month to the same Studio.

• The Average Monthly Unique Customers Per Studio is the average of all Waxing Studios in the data set’s monthly averages of unique customers.

• In 2023, the Average Monthly Unique Customers per Studio in the data set was 664, the median was 624, and the number/percentage of the Waxing Studios in the data set that met or exceeded the average was 60 or 45%.

Part 4 – Average Ticket Gross Revenues

Average (134 Studios)

• Average Ticket Gross Revenues:  $60.95
• Number/Percentage That Met or Exceeded Average Ticket Gross Revenues:  64/48%
• Median Ticket Gross Revenues:  $60.83
• Highest Average Ticket Gross Revenues:  $79.03
• Lowest Average Ticket Gross Revenues:  $48.68

• A “Ticket” is the invoice provided by the Waxing Studio to a customer showing the services performed for, and products purchased by, the customer during that visit, excluding taxes, along with an itemized and total amount due.

• Average Ticket Gross Revenues of the Waxing Studios is calculated by determining the average ticket for each Waxing Studio in the data set for the relevant time period which is calculated by dividing the total revenue for each Studio by the total number of tickets for each Studio and then averaging the average ticket across all Studios in the data set.

Part 5 – Retail Gross Revenues Information

Average (134 Studios)

• Average Gross Revenues:  $33,552
• Number/Percentage That Met or Exceeded Average Gross Revenues:  52/39%
• Median Gross Revenues:  $28,729
• Highest Gross Revenues:  $114,992
• Lowest Gross Revenues:  $4,285
• Retail Attach Rate:  16%

• This chart provides information related to the sale of retail products by the Waxing Studios to customers of these Studios. Waxing the City considers a “retail product” to be any item purchased by a customer that is not a service.

• Average Gross Revenues of the Waxing Studios in the chart above are calculated by determining the total amount of Gross Revenues attributable to the sale of retail products of the Waxing Studios in the data set for the relevant time period and dividing that amount by the total number of Waxing Studios in the data set.

• Retail Attach Rate is the percentage of tickets issued by the Waxing Studios that included the sale of at least one retail product. This percentage was determined by dividing the total amount of tickets that included the sale of at least one retail product of the Waxing Studios in the data set by the total number of tickets of the Studios in the data set. 52 or 39% of the Waxing Studios met or exceeded this Retail Attach Rate.

• Some Waxing Studios have sold these amounts. Your individual results may differ. There is no assurance that you’ll sell as much.

• Percentages were rounded to the nearest whole percent and dollar amounts to the nearest dollar.

• The information disclosed in this Item 19 does not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Revenues information to calculate net income or profit.

• All of these Waxing Studios offered substantially the same products and services as you are expected to offer.

Section VI – Waxing the City Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️