This post was updated on August 26, 2015 to reflect information from Waxing the City’s 2015 FDD (Item 7).
Detailed Estimates of Waxing the City Franchise Costs Based on Item 7 (Estimated Initial Investment) of Waxing the City’s 2015 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 4-6 rooms but that you initially order equipment, furniture, and supplies for 4 treatment rooms.
- These fees are non-refundable unless otherwise noted.
1. Initial Franchise Fee: $20,000 to $27,500
- The Initial Franchise Fee is generally $27,500. However, Waxing the City discounts the fee in certain specific circumstances. Some of these discounts are tied to you signing an Area Development Agreement and committing to open 2 or more Waxing Studios.
2. Travel and Living Expenses While Training: $3,000 to $5,000
- The person you designate as the principal operator of your studio must attend mandatory training at one of the corporate regional training centers as designated by Waxing the City (currently located in Hastings, Minnesota and Denver, Colorado), or at such place it designates.
- In addition, if your principal operator is not also the person that will own a controlling interest in your Waxing Studio (the “Principal Owner”), then the Principal Owner holding the controlling interest must also attend and complete this training to the franchisor’s satisfaction before you open your Waxing Studio.
- While the franchisor does not charge for this training, you must pay all travel and living expenses for your attendees.
- The estimates are the estimated costs for 2 people to attend the Initial Training Program for 5 days.
- The franchisor will also conduct Initial Cerologist Training for up to 4 people at its offices before you open for business. There is no fee for this training. You may add additional aestheticians, at a cost of $250 each. In all cases, you must also pay all travel and living expenses for your attendees.
3. Real Estate and Leasehold Improvements: $6,000 to $190,000
- The estimate for initial expenses for real estate and improvements assumes you will lease space for your Waxing Studio. Waxing Facilities are generally located in commercial retail areas. The typical size of a Waxing Facility ranges between 1,400 and 2,000 square feet. The franchisor’s estimates are based on these assumptions.
- Rent for these locations will typically vary from $25 to $30 per square foot per year, not including CAM or tax expenses.
- The low estimate assumes the landlord pays for all of the buildout costs, and you must only pay the first month’s rent and an additional month as a security deposit, plus nominal miscellaneous expenses.
- The high estimate provides a “vanilla shell” or “as is” space, 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 Facility.
- 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 Facility, 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: $4,500 to $10,000
- Waxing the City will provide you with a prototype set of construction drawings of the standard layout for a Waxing Facility. It will also work with you to develop a basic design for your Waxing Facility.
- You will need to provide the franchisor with detailed as-built drawings and existing condition information to facilitate the design of the space for your location. You will then need to contract with licensed and qualified design professionals to create a complete set of detailed construction drawings for your location, including, but not limited to, architectural, mechanical, plumbing, and electrical.
- The low estimate assumes standard tenant improvements and excludes items such as structural construction, site surveys, site plans, energy studies, exterior improvements, and/or building elevations.
- The high estimate assumes that structural changes will need to be made to your location, and that you will need to hire Waxing the City’s designated architect or hire a local architect to prepare plans for your location and to create construction drawings which will be used by your local contractor to secure construction permits and to build your location.
5. Furniture, Fixtures, and Equipment: $1,600 to $1,850
- The estimate assumes you lease your furnishings and fixtures from Geneva Capital, LLC, and only covers the first and last payments. Waxing the City estimates the total cost of your furnishings and fixtures to be between $20,000 and $24,000. This includes the reception desk and the furniture for your treatment rooms, lobby area, and common areas, including a fabricated retail display.
- This estimate assumes you lease your equipment from Geneva and only covers the first and last payments. Waxing the City estimates the total cost to purchase equipment for 4 waxing treatment rooms and the employee break room to be between $18,000 and $20,000.
6. Office Supplies: $2,500 to $3,000
- Before beginning operations, you must purchase an assortment of office equipment and supplies as described in the Operations Manual, including paper, pens, folders, and supply cabinets.
7. Technology Expenses and Licenses: $325 to $450
- This estimate assumes you lease these items from Geneva. The item includes 3 computers, a sound system, a security and surveillance system, a telephone system, and 1 iPad tablet. The total cost of equipment will likely be between $7,500 and $11,000.
8. Signage: $275 to $400
- This estimate assumes you lease your signage from Geneva, and only covers your first and last payments. The total cost for 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 $6,500 and $10,000.
9. Initial Inventory: $6,000 to $7,000
- Your initial inventory of body waxing supplies and retail products will include 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: $10,000 to $15,000
- This will cover 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 the company’s marketing portal.
- The high estimate also covers a modest amount of initial media purchases.
11. Insurance: $2,000 to $2,250
12. Miscellaneous Expenses: $4,200 to $6,800
- 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: $37,000 to $57,000
- 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 low estimate assumes you pay no rent the first 3 months.
14. Total: $97,400 to $326,250
- These figures are estimates only. Waxing the City has relied on its experience in opening 2 company-owned Waxing Studios in the Minneapolis-St. Paul metropolitan area, and 10 franchised in various states in 2014 to compile these estimates.