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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of Waxing the City’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- historical average monthly gross revenue during their first 12 months of operations for the franchised Waxing the City studios that had their first full calendar month of operations between March 2018 and December 2020 (the “Reporting Period”) and that opened their Waxing the City studios between February 2018 and August 2020
- 2020 average, median, highest, and lowest gross revenue, broken down by month (January to December), for the 83 franchised Waxing the City studios that were in operation for at least 12 months as of December 31, 2019
Section I – Background Information
17 Things You Need to Know About the Waxing the City Franchise
Named a Top Franchise in Entrepreneur Magazine’s 2021 Franchise 500 List
1. At the beginning of February 2021, Self Esteem Brands (SEB), parent company of Waxing the City, Anytime Fitness, Basecamp Fitness, and The Bar Method, announced that Waxing the City and Anytime Fitness had been named among the top franchises in Entrepreneur magazine’s 2021 Franchise 500. Placement in the Franchise 500 is a highly sought-after honor and considered one of the most competitive rankings in the franchise industry.
2. A leading personal care franchise providing head-to-toe waxing services for women and men, Waxing the City has now been ranked in Entrepreneur magazine’s Franchisee 500 for six consecutive years. Waxing the City believes waxing is a lifestyle, not an occasional treat.
3. According to David Mortensen, co-founder and president of SEB, “Our overall mission at Self Esteem Brands is to grow and support our franchisees who are providing wellness to people around the world. It’s no secret the past year has been challenging for everyone around the world, but wellness and self-esteem remain crucial to health and happiness. I’m proud of the success our franchisees have achieved with Anytime Fitness, Waxing the City and our other brands, and it’s exciting to see opportunities for continued growth ahead.”
4. In its 42nd year, Entrepreneur magazine’s Franchise 500 is a comprehensive franchise ranking, with companies recognized for their exceptional performance in areas including unit growth, financial strength and stability, and brand power. This is Waxing the City’s sixth year on the prestigious list. Entrepreneur magazine’s Franchise 500 has become both a dominant competitive measure for franchisors and a primary research tool for potential franchisees. With more than 1,100 companies applying for this honor, Anytime Fitness and Waxing the City’s positions in the ranking are a testament to their strength as franchise opportunities.
5. Jason Feifer, Entrepreneur’s editor-in-chief, said, “2020 was a challenging year for everyone, but it was also a year of unusual opportunity. Franchises were able to be nimble and innovative, serving the needs of franchisees and customers in ways that will resonate for many years to come. We believe that, when we eventually look back on this time, we’ll see it as a moment when many brands defined themselves for the future.”
Parent Company Amps Up Growth Focus with Three New Executive Appointments
6. In early March 2021, Self Esteem Brands (SEB), the parent company of Anytime Fitness, Basecamp Fitness, The Bar Method, and Waxing the City, announced three executive appointments as they embark on the next chapter of growth and global expansion in fitness, health, and wellness: Angela Jaskolski was promoted to chief operating officer (COO), SEB; April Anslinger was named chief marketing officer (CMO), SEB; and Stephanie Schon joins SEB as brand president, The Bar Method.
7. As COO, Jaskolski leads internal strategy and operations for SEB, working closely with the company’s brand presidents and executive team to develop and implement organizational strategies to support and grow the business. She reports to Chuck Runyon, CEO, and David Mortensen, president.
8. Prior to her COO appointment, Jaskolski led several SEB brands over the past four years, including three years with Waxing the City where she led the rapid growth of the brand – now the second-largest waxing franchise in the United States. Prior to joining SEB, she served in a number of operational leadership roles with Regis Corporation and in the Aveda network.
9. As CMO, Anslinger will lead the evolution of centralized marketing capabilities, inclusive of brand strategy, digital, loyalty/CRM, creative services, public relations, and analytics. As the brands continue to expand globally, she will lead brand positioning and marketing efforts internationally and play a pivotal role in defining corporate marketing support for international Master Franchisees. Anslinger reports to Runyon and Mortensen.
10. Anslinger joins SEB from The Estée Lauder Companies, where she served for three years as senior vice president, general manager of North America (NA) Aveda. Prior to Estée Lauder, she served as the chief growth officer for Schwan Foods. Anslinger spent 15 years at Procter & Gamble in positions of increasing responsibility, primarily in its hair care division.
11. CEO Chuck Runyon said of Anslinger, “April’s arrival at SEB comes at the moment where we are embracing the new normal for global fitness as key to health and wellness. She brings a dynamic, global consumer-first brand experience to the CMO role, and her results-driven and forward-thinking approach is an excellent fit both with the culture of SEB today and our plans for the future.”
12. Schon will lead operations and growth for the low-impact fitness-studio chain acquired by SEB in September 2019 with 96 studios in the United States and Canada. Schon reports to Jaskolski. Schon, as The Bar Method brand president, leads the strategy development, builds the capabilities, and operationally positions her team to grow the brand, including franchise unit operations and support for all franchise owners.
13. Prior to joining SEB, Schon served as chief operations officer of Erbert & Gerbert’s Sandwich Shop. She turned the company’s sales trajectory around in just one year; she helped lead the company through the first eight months of the pandemic, generating comparative sales and keeping stores open at better rates than the industry average. Schon built an incredible franchise operational wheelhouse and deep business operations experience at Buffalo Wild Wings, Digineer, and IBM.
14. Runyon said, “Angela, April and Stephanie are powerhouse leaders with proven track records of turning franchise and consumer-facing strategies into exceptional results and sustainable growth. The leaders on our executive team understand both that our long game is a bet on health and wellness – and that our franchise owners, employees, members and communities continue to endure the challenges of this pandemic. Angela, April and Stephanie will help us engage existing and new consumers to embrace their health and personal wellness in new and different ways, while attracting entrepreneurial small-business owners to join our brands.”
15. Waxing the City was founded in 2003 by Summer Vasilas, Marilyn Hartshorn, Robin Schoh, and Alex Arlotta in the LoDo neighborhood of Denver, Colorado. Vasilas had spent many years working in salons and refined her waxing skills. She had always dreamed of opening her own salon and took her idea to Hartshorn, Schoh, and Arlotta. Waxing the City, which provides expert facial and body waxing, was the first studio of its kind in Colorado.
16. The first Waxing the City location was a success and Vasilas and her business partners opened more locations around Colorado. In 2010, Waxing the City launched its first franchise, which opened in Dallas, Texas. Two years later, Waxing the City was acquired by Self Esteem Brands, parent company of Anytime Fitness, Basecamp Fitness, and The Bar Method. Today, there are Waxing the City salons across 33 states and the District of Columbia.
Entrepreneur’s Franchise 500
17. Waxing the City ranked No. 236 on Entrepreneur’s 2021 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 2021 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 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 84
- Outlets at the End of the Year: 95
- Net Change: +11
- Outlets at the Start of the Year: 95
- Outlets at the End of the Year: 107
- Net Change: +12
- Outlets at the Start of the Year: 107
- Outlets at the End of the Year: 108
- Net Change: +1
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 8
- Net Change: +7
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 9
- Net Change: +1
- Outlets at the Start of the Year: 9
- Outlets at the End of the Year: 7
- Net Change: -2
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
Part 1 – Historical Average Monthly Revenues of Studios’ Initial 12 Months of Operations – 2018, 2019, and 2020 Studio Openings
- The following is a representation of historical monthly Gross Revenues during the first 12 months of operations of the franchised Waxing Studios that had their first full calendar month of operations between March 2018 and December 2020 (the “Reporting Period”) and that opened their Waxing Studios between February 2018 and August 2020.
- Waxing the City excluded from 2018 Gross Revenue information the results of 4 Waxing Studios that permanently closed. Waxing the City excluded from 2019 Gross Revenue information the results of 1 Waxing Studio that permanently closed. All of these Studios were open for more than 12 months before closing.
- However, Waxing the City did not exclude from 2020 information below the Waxing Studios that closed during part of 2020 because of COVID-19 limitations.
- Gross Revenue includes all revenue generated by the Waxing Studios, excluding bona fide refunds, credits given or allowed to customers for the return of merchandise, and sales taxes collected and remitted.