In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Waxing the City franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Waxing the City franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Waxing the City’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- projected revenue, cost of sales, gross margin, operating expenses, and operating income for the second, third, and fifth year of operation of a Waxing the City studio, and the specific assumptions behind these projections
Section I – Background Information
Waxing the City Poised for Explosive Growth
As growth continues in the specialty-service salon industry, including waxing salons, look to Waxing the City to enjoy continued franchising success. The company has about 25 locations, with about 75 franchise units sold, and anticipates 350 locations to open within the next five years.
Waxing the City was No. 20 on Entrepreneur’s 2015 New Franchise Rankings list. Entrepreneur also picked waxing as one of the Top 10 Types of Franchises to Watch in 2015.
A Dream Come True
The company started with Summer Hartshorn Vasilas, who worked for salons in Minneapolis, Minnesota, and Denver, Colorado, in the late 1990s and early 2000s. She dreamed of opening a studio devoted exclusively to facial and body waxing, and with co-founders Marilyn Hartshorn, Robin Schoh and Alex Jimenez, she made that dream come true in 2003.
The first studio, which opened in the trendy Denver neighborhood of LoDo, was tiny but turned out to be quite popular, with clients driving long distances for the services. By 2010, when the company started franchising, three more studios had been added in the Denver area, and the company had expanded to Dallas, Texas.
Company Found Partner in Anytime Fitness
In 2012, with five locations, Waxing the City entered into a partnership with Anytime Fitness LLC. The largest co-ed fitness franchise in the world, Anytime Fitness has more than 2,500 clubs in 20 countries.
At the time of the partnership, Anytime Fitness CEO and co-founder Chuck Runyon praised Waxing the City’s intense training and “fanatical” approach to the client experience.
Education, Training a Top Priority
High-tech, intensive education and training systems are designed to produce long-term careers for cerologist technicans, a title Waxing the City coined (“cera” is Latin for “wax”).
Waxing the City uses custom formulated soft and hard wax made exclusively for Waxing the City in Europe by a company in Spain. The hard wax, used for the face and sensitive areas, shrink-wraps and hardens around the hair, removing it less painfully as it lifts form the skin. The soft, more traditional wax is used for larger body areas (chest, back, legs, arms), with removal facilitated by a cloth strip.
The company says the hair, which is removed at the root, comes in finer, softer, slower and sparser over time compared with other methods of hair removal.
Services are offered to both women and men, targeting the typical lip, back, leg and bikini areas, as well as ears, full face and “tween brow,” and much more. Three levels of Brazilian waxes are available for men, while women have available two bikini waxes and a Brazilian bikini wax.
Section II – Estimated Costs
- Please click here for detailed estimates of Waxing the City franchise costs, based on Item 7 of the company’s 2015 FDD (updated).