Sugaring LAFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Sugaring LA franchise requires a total initial investment of $313K – $432K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $664K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $313K – $432K
- 30th pct Personal Care…
- Avg gross sales
- $664K
- 22nd pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 8
- 14th pct Personal Care…
- SBA default
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
30% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $313K – $432K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $664K/year, with an estimated 30% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 48/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SugaringLA Franchise, LLC
- Parent company
- Franworth, LLC
- Predecessor
- sugaringLA Franchise
- Prior franchisor entity
- CEO title
- Founder/CEO
- Danielle Correia
- CEO experience
- 12 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 106 E. Liberty St., Suite 310, Ann Arbor, MI 48104
- Auditor
- DoerenMayhew
- Audited financials
- Franchisor revenue
- $4K
- vs $231K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- sugaringLA
- of one of our members
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate sugaring salons providing hair removal services (full-body waxing alternative using sugar paste). Day-to-day involves scheduling appointments, performing sugaring treatments, managing 1-3 staff members, maintaining inventory/supplies, and handling client relations in a service-based retail environment.
- CEO
- Danielle Correia
- Headquarters
- MI
- Founded
- 2022
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| Lease Payment (first 3 months) | $8K | $15K | |
| Security Deposits | $4K | $8K | |
| Leasehold Improvements | $100K | $160K | |
| Furniture, Fixtures, Decor, and Equipment | $9K | $9K | |
| Studio Layout, Architect, Engineer, Drawings, and Permits | $14K | $20K | |
| Construction Management | $20K | $20K | |
| Initial Supplies | $13K | $15K | |
| Outdoor Signage | $8K | $15K | |
| Point of Sale (POS) Register, Hardware, Software | $10K | $12K | |
| Initial Inventory Package | $5K | $7K | |
| Pre-opening training expenses | $8K | $12K | |
| Telephone and Utility Deposits and Expenses | $250 | $2K | |
| Grand Opening Marketing (3 months prior to opening) | $10K | $10K | |
| Business Licenses, Permits, etc. (first year) | $200 | $1K | |
| Insurance Deposits and Premiums (first three months) | $2K | $2K | |
| Professional Fees (first year) | $3K | $5K | |
| Additional Funds (first three months) | $40K | $60K | |
| Development Fee (Multi-Unit 2-Pack) | $110K | $110K | |
| Development Fee (Multi-Unit 3-Pack) | $135K | $135K | |
| Total initial investment | $558K | $677K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$146K
22.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
35 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $313K – $432K
- Better than avg vs category
- Liquid capital req'd
- $40K – $60K
- Better than avg vs category
- Franchise fee
- $35K – $60K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 3.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $375 |
| Training fee | $8K |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $19K – $21K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $664K
- Per unit, per year
- Median gross sales
- N/A
- Avg net income
- $112K
- Cash-on-cash
- 30.1%
- Based on Net Income / investment midpoint
- Item 19 type
- Affiliate Outlets
- Sample size
- 4 units
- vs category median 35 · small
- Range (low → high)
- $511K→$817K
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Sugaring LA Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Opened (3yr)
- 4
- Transfers (3yr)
- 0
- Projected new
- 15
- Franchisor's next-year forecast
- Ceased ops
- 12.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Minnesota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sugaring LA is a micro-franchise with reasonable unit economics but concerning stagnation risk, high capital requirements relative to net returns, and limited growth infrastructure typical of pre-scale brands.
Litigation (Item 3)
No litigation or other dispute resolution required to be disclosed
Largest disclosed settlement: $60,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DoerenMayhew⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 rating
- 01MINOROnly 8 units system-wide with unknown/stagnant growth trajectory raises scalability concerns
- 02MINORHigh investment-to-net-income ratio: $313k-$431k investment against $131k avg net income means 2.4-3.3 year payback with no growth buffer
- 03MINOR6% royalty on $617k average revenue ($37k annually) is substantial given modest profitability margins (~21% net)
- 04MINORSmall unit count limits franchisee referral networks and brand recognition leverage
- 05HIGHNo disclosed litigation is positive, but tiny franchise size means less public scrutiny/disclosure requirements
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | franchisor principal place of business |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation or other dispute resolution required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 38 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sugaring LA · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sugaring LA franchise?
The total investment to open a Sugaring LA franchise ranges from $313K – $432K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sugaring LA franchise owners earn?
According to Item 19 of the Sugaring LA FDD, the average gross sales per unit is $664K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Sugaring LA's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sugaring LA (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Sugaring LA franchise locations are there?
As of their most recent FDD filing, Sugaring LA has 8 total units in the United States, including 0 franchised units and 4 company-owned units. 4 new units were opened in the latest reporting year.
Is Sugaring LA a good franchise to buy?
FranchiseVerdict rates Sugaring LA as a A-grade franchise with a risk score of 48 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.