Detailed Information on European Wax Center’s Initial Franchise Fee, Royalty Fee + 35 Other Fees (Items 5 and 6, 2021 FDD)

1.  Development Fee:  $63,000 to $207,000

• If you enter into a Multi-Unit Development Agreement with European Wax Center for the development of two or more Franchised Centers, you will be required to pay it a development fee ranging from $63,000 to $207,000.

• The development fee is an amount equal to (i) the full initial franchise fee for the first Franchised Center to be developed under the Development Agreement, plus (ii) 50% of the initial franchise fee for each of the second through tenth Franchised Centers you commit to develop.

• The development fee is a pre-payment of all or a portion of the initial franchise fees you must pay to European Wax Center for each of the first through tenth Franchised Centers you are required to open under the Development Agreement.

2.  Franchise Fee:  $36,000 to $45,000

• The initial franchise fee is $45,000, and additional franchises have a franchise fee of $36,000.

• In determining whether a franchisee group qualifies for the reduced $36,000 franchise fee, European Wax Center generally looks to see whether a majority ownership of the franchisee group are existing franchisees.

• You must pay the full franchise fee when you sign the Franchise Agreement for the Center. If additional Centers are developed under a new Franchise Agreement, the franchise fee is $36,000 for each additional European Wax Center.

3.  Start-up Package Fee:  $22,000 to $26,000, plus taxes and delivery charges

• Before you open, you must purchase European Wax Center’s start-up package which includes an opening inventory of European Wax Center products and supplies. The standard fee for the new start-up package fee for European Wax Center products and supplies can range from $22,000 to $26,000, plus taxes and delivery charges.

4.  IT Platform Set-up Fee:  $350

• Franchisees are required to pay a set-up fee of $350 at or around the time of opening. The set-up fee is standard for all new Center openings.

5.  Royalty Fee:  6% of gross sales

• Due Date:  Weekly.

6.  Marketing Fund Contribution:  3% of gross sales

• Due Date:  Currently, monthly (usually around the first of each month).

7.  Additional Renewal Option:  50% of then-current franchise fee for the region

• Due Date:  At the time of exercise.

• Franchisees that are renewing their Franchise Agreement may have an option to purchase an additional option.

8.  IT Network/Cyber Security Insurance Fee:  $100 (estimated)

• Due Date:  Annual.

9.  Technology & Security Fee:  $310 (estimated)

• Due Date:  Monthly.

10.  Audit Expenses:  all costs and expenses associated with audit

• Due Date:  Upon demand.

• Audit costs payable only if the audit shows you underreported amounts you owe European Wax Center by 3% or more.

11.  Late Fees:  1.5% per month (18% per year) or the highest rate allowed by law of the state where you are located, whichever is less

• Due Date:  Upon demand.

12.  Electronic Depository Transfer Account Fees:  $35 (or then-current fee) for insufficient funds; $100 (or then-current fee) for changes in account

• Due Date:  As incurred.

13.  Approval of Products or Suppliers:  all reasonable costs of evaluation

• Due Date:  Time of evaluation.

14.  Insurance Policies:  amount of unpaid premiums plus European Wax Center’s reasonable expenses in obtaining the policies

• Due Date:  Upon demand.

• Payable to European Wax Center only if you fail to maintain required insurance coverage and it elects to obtain coverage for you.

15.  Breaches/Self Help:  European Wax Center’s reasonable cost and expenses, including up to 10% of amounts paid to account for overhead costs

• Due Date:  Upon demand.

• If you engage in activity that may damage European Wax Center’s reputation or goodwill, it may cure the default and require that you reimburse its reasonable costs, expenses, and liabilities. Except in cases of emergency where it may act immediately, European Wax Center will provide you 1 business day notice before incurring any amounts that will be charged to your account.

16.  Administrative Fee:  $500 for the initial occurrence, up to $500 for each additional occurrence in the same 12-month period. European Wax Center waives the first occurrence in any 12-month period.

• Due Date:  Upon demand.

• Applies if you fail to comply with European Wax Center’s system specifications.

17.  Transfer Fee/Transfer Processing Fee:  Development Agreement: Transfer fee equal to 20% of the then-current initial franchise fee that would otherwise be payable by the transferee if purchasing a new franchise at such time for each Franchised Center remaining to be developed under the Multi-Unit Development Agreement, net of any pre-paid initial franchise fees for such Franchised Centers included in the development fee. Franchise Agreement: Transfer fee equal to 20% of the then-current franchise fee that would otherwise be payable by the transferee if purchasing a new franchise at such time ($9,000 for new franchisees, $7,200 for existing franchisees).

• Due Date:  Transfer processing fee is due with each transfer request, including related party transfers.

• Transfer fee is then paid at the time of transfer, less the processing fee.

18.  System Modifications:  all reasonable costs and expenses associated with system modification

• Due Date:  As required.

• If European Wax Center makes changes to its franchise System, you must adapt your business to conform to the changes. Some examples include new equipment, fixtures, software, or new Marks.

19.  Customer Service Fee:  all costs incurred in assisting your customers or handling customer service issues

• Due Date:  Upon demand.

• You must reimburse European Wax Center if it determines it is necessary for it to provide service directly to your customers.

20.  Site Inspections:  $1,000 for each subsequent site inspection performed by European Wax Center

• Due Date:  Promptly after time of inspection.

• Payable to European Wax Center only if it has to perform additional site inspections after determination of non-conformities with site plans.

21.  Conference/Ongoing Training:  Conference Fees: up to $950 per person. You must also pay your expenses as well as employees’ expenses in attending. Center managers must attend training.

• Due Date:  Time of program.

22.  Additional Launch Support:  currently, $7,500, which includes 1 dedicated corporate/regional trainer for 7-day launch/re-launch, including travel. Additional trainers are made available for an additional $7,500 per trainer fee.

• Due Date:  Time of the request.

23.  Additional Training:  currently, $350 per day per associate, plus European Wax Center’s expenses and your expenses as well as your employees’ expenses in attending

• Due Date:  Time of service.

24.  Additional Operations Assistance:  currently, $350 per day per associate, plus European Wax Center’s expenses

• Due Date:  Time of assistance.

25.  Indemnification:  all costs and expenses including attorneys’ fees

• Due Date:  Upon demand.

• You must defend lawsuits at your cost and hold European Wax Center and other specified parties harmless against lawsuits arising from your operation of the franchised Center.

26.  Fees Associated with Programs, Systems, and Initiatives Developed for the System:  reasonable costs and expenses

• Due Date:  To be determined.

27.  Breach of Privacy or Data Protection Laws:  all costs and expenses including attorneys’ fees

• Due Date:  Upon demand

28.  Release of Mechanics’ and Labor Liens on the Franchise Location:  all costs and expenses, including attorneys’ fees

• Due Date:  Within 10 days of European Wax Center’s demand.

• If European Wax Center or its affiliates choose to release any existing contractors’ liens on your franchise location, you must pay European Wax Center’s costs in releasing these liens.

29.  Local SEO/SEM Program (Search Engine Optimization and Search Engine Marketing Services):  currently, $275 per month

• Due Date:  Monthly.

30.  Change of Designated Area Fee:  European Wax Center’s reasonable legal and administrative costs (not expected to exceed $1,000 per change)

• Due Date:  At the time of such change.

31.  Relocation Assistance:  reasonable costs and expenses

• Due Date:  Upon demand.

32.  European Wax Center Products and Supplies:  then-standard wholesale prices for European Wax Center products and supplies that European Wax Center or its affiliates distribute, plus taxes and delivery charges, as applicable

• Due Date:  Typically upon delivery.

33.  Facebook Boost:  ranges typically from $100 to $600 per month

• Due Date:  Each month that it applies.

• European Wax Center provides franchisees with an option to boost their child Facebook pages which expands the number of Facebook members that see posts.

34.  Clearing House Operations:  designated amount based on redemption of Wax Pass, gift card, rewards points, or similar clearing house items

• Due Date:  Regularly upon demand.

• European Wax Center acts as a clearing house for the European Wax Center Gift Card Program, the European Wax Center Wax Pass Program, and the European Wax Center VIP Strut Rewards Program.

35.  Imagery Auto-Shipment Program:  actual cost of posters and other imagery items, plus shipping and taxes

• Due Date:  Quarterly after each order.

36.  Other Auto-Shipment Programs:  actual costs of auto-shipped products, plus shipping and taxes. European Wax Center may assess an administrative fee with certain auto-shipment programs, likely not to exceed 3-5% to cover its costs.

• Due Date:  Would likely be upon delivery.

37.  Renewal Fee:  $5,000

• Due Date:  On renewal.