Waxing the City Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Waxing the City is a personal-care franchise specializing in face and body waxing on a walk-in and membership model. Franchisees run studios staffing licensed estheticians and managing scheduling and retail.
FranchiseVerdict summary · 2026
A Waxing the City franchise requires a total initial investment of $340K – $646K, including a $43K franchise fee. Per the 2026 FDD, average unit revenue was $478K[2]. SBA 7(a) loans show a 7.0% charge-off rate across 114 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $340K – $646K
- 39th pct Personal Care…
- Avg gross sales
- $478K
- 11th pct Personal Care…
- Royalty
- N/A
- Units
- 167
- 48th pct Personal Care…
- SBA charge-off
- 7.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $340K – $646K including a $43K franchise fee.
- RETURNSAverage unit revenue of $478K/year (median $457K).
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better). SBA loan charge-off rate of 7.0% across 114 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Waxing the City Franchisor LLC
- Parent company
- Purpose Brands Holdings, LLC
- Predecessor
- Waxing the City Worldwide, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer (of parent companies Purpose Brands Holdings, LLC and Purpose Brands Intermediate, LLC)
- Thomas Leverton
- Incorporated in
- Delaware
- HQ
- 111 Weir Drive, Woodbury, Minnesota 55125
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $13.8M
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Basecamp Fitness Franchisor
- Anytime Fitness Iberia
- Anytime Fitness Franchisor
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Thomas Leverton
- Headquarters
- MN
- Founded
- 2021
- FDD year
- 2026
- States available
- 34
Can you afford it, and what does the money buy?
Entry cost is about average for a personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $43K | $43K | |
| Travel and Living Expenses While Trainingnot refundable | $1K | $3K | |
| Leasehold Improvementsnot refundable | $114K | $278K | |
| 3 Months' Rent and Security Depositnot refundable | $18K | $30K | |
| Construction Management Feesnot refundable | $0 | $13K | |
| Architect/Design Feesnot refundable | $11K | $22K | |
| Furniture, Fixtures and Equipmentnot refundable | $39K | $60K | |
| Office Suppliesnot refundable | $4K | $5K | |
| Technology Package and Licensesnot refundable | $13K | $26K | |
| Interior & Exterior Signagenot refundable | $17K | $35K | |
| Initial Retail Inventorynot refundable | $6K | $6K | |
| Initial Waxing Supply Inventorynot refundable | $8K | $8K | |
| Grand Opening Advertisingnot refundable | $25K | $25K | |
| Insurancenot refundable | $3K | $3K | |
| Miscellaneous Expensesnot refundable | $4K | $7K | |
| Additional Funds and Working Capital for First 3 Monthsnot refundable | $35K | $85K | |
| Total initial investment | $340K | $646K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $340K – $646K
- Top 40% of category vs category
- Liquid capital req'd
- $35K – $85K
- Middle of category vs category
- Franchise fee
- $43K – $43K
- Top 40% of category vs category
- Royalty
- Greater of (a) the Minimum Royalty Fee ($100/week), or (b…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $799 |
| Transfer fee | $12K |
| Renewal fee | $6K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 40% below the personal care & beauty norm.
Source: FDD 2026 · Item 19
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
$105K
22.0% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.3 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Waxing the City unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Waxing the City units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.7M
SBA $3.6M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $478K
- Per unit, per year
- Median gross sales
- $457K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 138 outlets
- vs category median 38 · large
- Range (low → high)
- $60K→$1.2M
- Cohort dispersion (min → max)
- Quartile band
- $205K→$789K
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 179 Personal Care & Beauty brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $478K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 8.0% (near the Personal Care & Beauty average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 11.3% CAGR over 3 years across 167 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty averages
How Waxing the City Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 167
- Opened
- 31
- Last reporting year
- Closed
- 15
- Turnover rate
- 18.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +11.3%
- Net unit change over 3 years
- 3-yr CAGR
- +11.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 31
- Closed (3yr)
- 15
- Terminated (3yr)
- 15
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 62.5%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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
- Michigan
- Wisconsin
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.
- Total loans
- 114
- Loan volume
- $36.9M
- Median loan
- $313K
- 50th percentile
- Charge-off rate
- 7.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 93.0%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 42
- Defaults
- 8
- Typical loan rate
- 8.0%
- avg rate to borrowers
- Franchised industry avg
- 17.4%
- brand beats franchise avg ↓
- Jobs supported
- 1,275
- 3.5 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 87% went to startups / new businesses, 13% to established operators
Franchise vs independent — in other personal care services, franchised businesses charge off at 17.4% vs 20.9% for independents — franchising is associated with 17% lower SBA default risk in this category.
Vintage analysis
Waxing the City charge-off rate by loan vintage
Top lenders financing Waxing the City franchisees
Showing 3 of 42 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Waxing the City's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 14-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 7.0% — 56% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean at the brand level: no going-concern, positive net worth ~$5M, positive net income $145,216 on $13.8M revenue, 167 units. Two disclosed litigation matters relate to affiliate The Bar Method (a 2009 IL AG action, $5,000 penalty) and a CEO's prior-employer bankruptcy (CEC Entertainment, 4 months after he left) — all old/indirect and low weight.
Litigation (Item 3)
1 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $5,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code, Case No. 20-33163, United States Bankruptcy Court, Southern District of Texas (Houston). On December 15, 2020 the Court confirmed CEC and its debtor affiliates Plan of Reorganization. On December 30, 2020 the Court provided for the discharge of the debtors.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 71 / 100 verdict
- 01HIGHTwo affiliate-related litigation matters (2009 IL AG, NY AG), not the brand itself
- 02HIGHBankruptcy disclosure is a CEO's former employer (CEC Entertainment 2020), not the franchisor
- 03MINORStrong financials: $5M net worth, $145,216 net income, 167 units, 11.3% growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 6 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 2 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 43 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
66 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Waxing the City · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Waxing the City franchise?
The total investment to open a Waxing the City franchise ranges from $340K – $646K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Waxing the City franchise owners earn?
According to Item 19 of the Waxing the City FDD, the average gross sales per unit is $478K. The median is $457K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Waxing the City FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Waxing the City FDD and qualifies whose outlets they describe.
What is Waxing the City's franchise failure rate?
Based on SBA 7(a) loan data, Waxing the City has a charge-off rate of 7.0% across 114 loans, meaning 7.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Waxing the City franchise locations are there?
As of their most recent FDD filing, Waxing the City has 167 total units in the United States, including 167 franchised units and 0 company-owned units. 31 new units were opened in the latest reporting year.
Is Waxing the City a good franchise to buy?
FranchiseVerdict rates Waxing the City as a A-grade franchise with a verdict score of 71 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Waxing the City, you can request corrections or provide updated information.
Other Personal Care & Beauty franchises
Compare similar franchise opportunities in the Personal Care & Beauty category
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.