In this FDD Talk 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 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Waxing the City franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Waxing the City outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Waxing the City’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average, median, high, and low gross revenue for the top one-third and bottom one-third of Waxing the City studios during their second, third, and fourth year of operation

• projected cost of sales, gross margin, operating expenses, and operating income for the top one-third and bottom one-third of Waxing the City studios during their second, third, and fourth year of operation, and the specific assumptions behind these projections

• historical average monthly gross revenues during the first 6 months of operations for the 50 franchised Waxing the City studios that had their first full calendar month of operations between February 2016 and January 2018 (the “Reporting Period”) and that opened their Waxing the City studios between January 2016 and December 2017

Section I – Background Information

16 Things You Need to Know About the Waxing the City Franchise

Launches New Membership Program

1.  At the end of October 2018, Waxing the City announced that it would be launching a new membership program, Club Orange, on November 5. Club Orange members will receive steep monthly discounts on all services along with the flexibility to “bank” their savings, and other nice perks.

2.  The membership program is available at all Waxing the City locations nationwide and features the following benefits:

• 20 percent savings on monthly waxing services;
• 50 percent savings on any first-time services;
• 10 percent discounts on all products; and
• the ability to “bank” the 20 percent savings on the unused services, to be used later.

3.  Earlier in the year, Waxing the City invited new and existing clients at select locations to test a pilot program for Club Orange. Waxing the City said that the participants loved the program.

4.  Angela Jaskolski, brand president of Waxing the City, added, “When we launched a pilot program in nine studios a few months ago, we received wonderful reviews. Our clients, especially those new to waxing, are often impressed by the personalized care they receive from our expertly-trained Cerologists™. This new program reflects the same commitment to quality and comfort. Club Orange is all about waxing regularly, enabling a more efficient service without compromising the standards that differentiate our brand and inspire our clients to continue to choose and recommend Waxing the City. We are focused on making it as easy as possible to choose and visit Waxing the City – and Club Orange is no exception.”

Opens 100th Studio

5.  At the beginning of August 2018, Waxing the City hit a milestone with the opening in Bowling Green, Kentucky of its 100th store. Waxing the City now has locations in more than 30 states. Since Waxing the City was acquired by Anytime Fitness in 2012, the company has grown steadily, averaging more than 20 new studios a year.

6.  Summer Vasilis, co-founder of Waxing the City, said, “Watching this company grow from one to 100 studios has been humbling and exhilarating. Our partnership with Self Esteem Brands provides us access to the resources and expertise to promote a steady pace of growth and an ongoing commitment to the success of our franchisees and their teams. Meeting and training new franchisees, who have become exemplary ambassadors of the brand, is a dream come true for Alex [Arlotta] and me.”

7.  In the same press release, Waxing the City said that it planned to open 15 more locations by the end of the year, and 30 to 40 more studios in 2019. In addition to the 100 studios now open, another 150 franchise territories have already been sold. Within the next five years, Waxing the City foresees a total of over 300 open studios. The company is actively seeking franchisee partners across the nation.

8.  Angela Jaskolski, brand president of Waxing the City, said, “This has been an extremely exciting year for Waxing the City. The strong performance of the brand is a testament to our franchisees and studio teams as well as the talented corporate team behind them, committed to delivering the best tools, programs and support.”

9.  Jaskolski added, “It’s rewarding to see franchisees, new and existing, benefit from our brand positioning, fantastic line of skincare products, on-site support teams and the increased brand awareness coming from marketing programs designed to be both effective and easy. However, the real key to our recent success is the exceptional service that Waxing the City clients experience in our studios. Our Cerologists™ bring this experience to life through a deep connection to customizing each visit to ensure client comfort and quality results before, during and after the service.”

Launches Arbor Day Special

10.  In April 2018, Waxing the City had a bit of fun with its Arbor Day special. The company’s marketing team devised a playful campaign called “Wax a Bush, Plant a Bush” to make sure that more trees were planted on Arbor Day. For every Brazilian wax service performed at a Waxing the City studio on Arbor Day, the company promised to plant a bush.

11.  Meredith Jurek, chief marketing officer for Waxing the City, said, “We’re not your typical waxing service provider. We think it’s high time to get real about body hair. Everybody has it. So, let’s unmask the myths, lay bare the truth, and strip away our anxieties about unwanted hair. And, by the way: at Waxing the City, we love trees. Bushes, too. They gotta grow somewhere.”

12.  For the Arbor Day campaign, Waxing the City teamed up with an organization called “One Tree Planted.” “We want to make sure we’re expanding our forests out there,” said Jurek, pointing to the outdoors through a window. “Not down there,” she said, not pointing anywhere in particular, but glancing downward. “Wax your bush, so we can plant one.”

Company History

13.  Waxing the City was founded in 2003 by Summer Vasilas, Marilyn Hartshorn, Robin Schoh, and Alex Arlotta in Colorado. Vasilis had worked for several salons in Minneapolis and Denver starting in the late 1990s. As Vasilis improved her waxing skills, she dreamed of opening a salon exclusively dedicated to waxing. Waxing the City was the first waxing studio of its kind in Colorado and the concept was an immediate hit.

14.  By 2010, the four founders, who are still involved with the company today, had opened three additional Waxing the City studios in the greater Denver area. That same year, they started franchising the Waxing the City concept and the first franchised store opened in Dallas, Texas.

15.  In 2012, Waxing the City was acquired by Anytime Fitness, a large co-ed fitness franchise. The acquisition has helped Waxing the City expand its presence across the United States.

Entrepreneur’s Franchise 500

16.  Waxing the City ranked No. 111 on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Waxing the City franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Waxing the City’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  16
• Outlets at the End of the Year:  38
• Net Change:  +22

2016

• Outlets at the Start of the Year:  38
• Outlets at the End of the Year:  65
• Net Change:  +27

2017

• Outlets at the Start of the Year:  65
• Outlets at the End of the Year:  84
• Net Change:  +19

Company-Owned

2015

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2017

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

Part 1 – Statement of Annual Historical Gross Revenue

• The following chart includes the average, median, and range of Gross Revenue for the top one-third and bottom one-third of Waxing Studios based on Gross Revenue that were open and operating for a certain number of years as of January 31, 2018.

• 39 Waxing Studios were open at least 2 full years as of January 31, 2018.

• 19 Waxing Studios were open at least 3 full years as of January 31, 2018.

• 7 Waxing Studios were open at least 4 full years as of January 31, 2018.

• Gross Revenue includes all revenue generated by a Waxing Studio, excluding bona fide refunds, credits given or allowed to customers for the return of merchandise, and amounts collected from customers and remitted by you to any governmental taxing authority in satisfaction of sales taxes.

Year 2 – Top One-Third