Updated October 12, 2019.
Detailed Estimates of Waxing the City Franchise Costs Based on Item 7 (Estimated Initial Investment) of Waxing the City’s 2019 Franchise Disclosure Document
- The high and low ranges in the table are based on an average Waxing Studio. Waxing the City recommends that studios have 4-6 waxing treatment rooms after 1 year of operation.
- These estimates assume you will build out your studio space for 6 rooms and that you initially order equipment, furniture, and supplies for 6 treatment rooms.
- These fees are non-refundable unless otherwise noted.
1. Initial Franchise Fee: $6,750 to $32,500
- The Initial Franchise Fee is generally $32,500. However, Waxing the City charges lower fees in certain specific circumstances, such as your status as a Veteran or your status as an existing franchisee of Waxing the City, or its affiliate, in good standing.
2. Travel and Living Expenses While Training: $1,913 to $6,375
- The person you designate as the “Principal Operator” of your studio must attend mandatory training at a location(s) Waxing the City designates. Waxing the City also may require the Principal Operator and/or a Principal Owner to spend up to 5 days training in an existing Waxing Studio owned by Waxing the City or an existing franchisee.
- In addition, if your Principal Operator is not also a Principal Owner, then a Principal Owner must also attend and complete this training to Waxing the City’s satisfaction before you open your Waxing Studio.
- While Waxing the City does not currently charge for this training, you must pay all travel and living expenses for your attendees.
- The estimates are the estimated costs for 1 person to attend the Initial Training Program at Waxing the City’s corporate office in Woodbury, MN for 5 days.
- Waxing the City will also conduct Initial Cerology Training for each of your aestheticians at its offices, or at its discretion, another location that it designates, before you open for business. There currently is no fee for this training, however, you must pay all travel and living expenses for your attendees.
- During the first 12 months after your Waxing Studio opens, Waxing the City will also train additional people at no additional cost. After that time, you must pay Waxing the City’s then-current fee, currently $250 per person, or $500-$1,000 per day, plus travel and lodging expenses per trainer if Initial Cerology Training is offered at any location other than Waxing the City’s corporate offices.
- Waxing the City’s estimate assumes 3 people attend Initial Cerology Training at Waxing the City’s corporate office within the first 12 months of operation. Your costs may differ if your aestheticians attend Initial Cerology Training at a location other than Waxing the City’s corporate office.
3. Real Estate and Leasehold Improvements: $58,877 to $172,204
- The estimate for initial expenses for real estate and improvements assumes you will lease space for your Waxing Studio. Waxing Studios are generally located in commercial retail areas. The typical size of a Waxing Studio is 1,800 square feet and pays $125 per square foot for the buildout of the Waxing Studio, which, at a minimum, includes rooms that will work as waxing treatment rooms, concrete floors, demised exterior walls, HVAC, roof, and utilities stubbed to the premises sufficient for a Waxing Studio.
- Waxing the City’s estimates are based on these assumptions, as well as an assumption that you will receive an approximate $23 per square foot tenant improvement allowance from your landlord.
- Waxing the City’s estimate assumes you must only pay first month rent and an additional month as a security deposit.
- The low amount assumes that you obtain SBA financing and are required to contribute 30% down, and the high amount assumes you pay cash.
- The amount of your leasehold improvements will likely vary substantially based on existing conditions, size, and design, including the availability and prices of labor and materials.
- The amounts do not include the costs of any necessary site development or site engineering work, nor do they include capitalized costs of rent or other occupancy costs, over either the life of the lease or the life of your investment.
- In addition, these amounts do not reflect costs for the purchase of unimproved land and construction of a free-standing Waxing Studio, which also would result in a significantly greater initial investment.
- In addition, Waxing the City assumed the general contractor will include permitting fees in the construction costs.
4. Architect/Design Fees: $2,370 to $7,900
- You will be required to retain an architectural vendor to create a complete set of detailed Construction Documents. Waxing the City does not construct, remodel, or decorate your premises.
- The estimates assume standard tenant improvements within a structure, designed for commercial use, and excludes items such as structural modifications, site work, energy studies, surveys, and/or exterior improvements.
5. Furniture, Fixtures, and Equipment: $13,047 to $43,490
- Waxing the City estimates the total cost to purchase furniture, fixtures, and equipment for the reception area, common areas, 6 waxing treatment rooms, and the employee break room to be approximately $44,000.
- The low range assumes you obtain SBA financing and contribute 30% down towards your required equity investment.
6. Office Supplies: $1,140 to $3,800
- Before beginning operations, you must purchase equipment and supplies as described in the Operations Manual, including intake forms, postcards, membership brochures, posters, and shopping bags.
- This estimate also includes additional marketing materials, like branded promotional products, printed materials, large format indoor or outdoor signage for tradeshows, and similar items, which you may purchase through Waxing the City’s marketing portal.
7. Technology Expenses and Licenses: $5,910 to $19,700
- This estimate assumes you purchase the basic technology package offered by ProVision. The low range assumes you obtain SBA financing and pay 30% down.
8. Signage: $4,555 to $15,182
- This estimate assumes you purchase all of your signage and the low range assumes you paid 30% down under SBA financing.
- The total cost for the signage varies depending on the size of the signs, quantity, whether the signs are illuminated, and the requirements of the landlord and governing authority. Waxing the City estimates the total cost to be between $4,600 and $15,200.
9. Initial Inventory: $4,560 to $15,201
- Your initial inventory of body waxing and service offering supplies and retail products will include branded products for retail sale, wax, applicators, gloves, linens, and other supplies and products as described in the Operations Manual. Waxing the City has the right to change the inventory requirements at any time.
10. Grand Opening Advertising: $7,500 to $25,000
- The estimate also includes amounts Waxing the City requires you spend to advertise your Waxing Studio for the Grand Opening and Ramp Up Plan. The low end assumes you pay 30% down for SBA financing.
- Factors that may affect the actual amount you spend include the type of media used, the location of your Waxing Studio, the size of the area you are advertising to, local media cost, and the time of year.
11. Insurance: $795 to $2,650
12. Miscellaneous Expenses: $2,597 to $8,658
- This amount includes utility costs, licensing fees, criminal background checks on all your initial employees, and professional expenses such as legal and accounting.
13. Additional Funds and Working Capital for First 3 Months: $17,727 to $57,923
- This amount includes estimated operating expenses you should expect to incur during the first 3 months of operations, not including any revenue generated by your Waxing Studio. These figures do not include any taxes or other permitting or licensing fees that you may pay.
- The estimate assumes you pay no rent the first month and that you pay rent in the second and third month for a studio with 1,800 square feet.
- The low range assumes you obtain SBA financing and pay 30% down.
14. Total: $127,741 to $410,583
- These figures are estimates only. Waxing the City has relied on its experience in operating 8 company-owned Waxing Studios in the Minneapolis-St. Paul metropolitan area, and the experience of the franchised locations in various states during 2017 and 2018 to compile these estimates.