WAXING THE CITY

Item 7 lays out the financial entry: total initial investment ranges from $339,945 to $646,195, with a $42,500 franchise fee covering training and site selection support. Ongoing fees per Item 6 include a 6% royalty on gross sales, 2% brand fund contribution, and a flat $799 monthly technology fee—positioning ongoing costs at around 8% plus fixed tech expenses. Item 19 reveals average gross revenue of $478,025 and median $457,222 for studios, suggesting solid top-line performance in a market demanding premium waxing, skincare, and brow services; at these levels, after fees and typical operating costs, EBITDA could hit 15-20% for efficient operators, though no profit figures are provided.

System health shows promise with 167 locations up 11% from 151 in 2024, plus 13 projected new units, but 15 terminations and 9 transfers signal moderate churn—better than high-failure concepts but worth scrutinizing FDD Item 20 for trends. Financing shines: 117 SBA loans averaging $327,419 with just a 6.8% default rate, indicating banks view Waxing the City as low-risk since 2010 franchising. For beauty investors eyeing $400K+ revenue potential without food/service volatility, this FDD paints a viable path, especially in underserved markets, but scale cautiously given the 7-day operations mandate.