European Wax Center

Item 7 outlines the franchise fee at $45,000, with ongoing royalties of 6% on gross sales, a 3% brand and ad fund contribution, plus fixed monthly fees of $310 for technology/security and $275 for local SEO/SEM—these add up quickly for operators chasing volume in a service-heavy model. While total investment isn't explicitly ranged in the FDD, the 384 SBA loans averaging $392,338 with an impressively low 1.8% default rate point to franchisees securing substantial financing, likely covering buildouts and inventory in high-rent retail spots. This lending track record underscores accessibility for qualified buyers, especially as the system grew modestly from 1,038 units in 2023 to 1,062 in 2024 (+2%), with 14 projected new openings signaling cautious optimism.

System health metrics offer reassurance mixed with caveats: just 4 terminations reflect operational stability, but 76 transfers suggest active resale market—potentially great for entering via acquisition at a discount, though it hints at some owners exiting. A single litigation note involves a termination dispute with Worley Wax, LLC over an incident and competitive business ties, a minor blemish in an otherwise clean slate. No Item 19 means no average revenue or profit benchmarks, forcing buyers to dig into validations or model conservatively; pair that with Plano, TX headquarters and required supplier purchases, and it's a polished opportunity for beauty enthusiasts betting on recurring visits in a $10B+ industry.