Waxxpot

Item 7 lays out the financial entry: total investment spans $233,150 to $446,500, including a $49,500 franchise fee, build-out, equipment, and initial inventory for a 1,000-2,000 sq ft salon. Ongoing fees hit hard at 6% royalty, 2% brand/ad fund, 1% technology, plus $450-$650 monthly bookkeeping—totaling around 9% of sales plus fixed costs. Item 19 shines light on performance across eight franchised units: average gross revenue clocks $323,466, with median at $352,801, suggesting a few laggards pull the average down but most hit above $300K. Yet EBITDA margin? A stark 0%, implying expenses devour every dollar of operating profit—no margin for error or owner pay without cost-slashing.

System health metrics signal cautious optimism. From five franchised locations in 2022 to eight in 2023 (+60% jump), with four projected new units, growth is real but from a tiny base—14 corporate stores anchor the 22 total. Just two transfers and three SBA loans averaging $298,333 show limited resale activity and financing interest, no major red flags like mass terminations. For beauty investors eyeing steady personal care demand, Waxxpot offers revenue upside in an underserved waxing niche, but razor-thin (or nonexistent) margins demand operational wizardry to turn black ink—best for hands-on operators who can outperform the 0% benchmark.