Waxing the City Franchise Cost, Revenue & Review 2026
- Investment
- $340K – $646K
- Disclosed sales
- $478K
- gross sales, not profit
- SBA charge-off
- 18.6%
- on 114 loans
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 and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $478K[2]. SBA 7(a) loans show a 18.6% charge-off rate across 114 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $340K – $646K
- 39th pct Personal Care…
- Avg gross sales
- $478K
- 13th pct Personal Care…
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 167
- 48th pct Personal Care…
- SBA charge-off
- 18.6%
- % 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 median · 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, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $478K/year (median $457K).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 18.6% across 114 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +16 franchised outlets in the latest year (31 opened, 15 closed); 48 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
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
- FDD Item 1, page 9 of the 2026 FDD
- 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).
Same owner · FDD Item 1, page 9
4 other brands on this site name Purpose Brands Holdings, LLC as parent or ultimate parent in their own FDD.
Portfolio: Purpose Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 runs 23% above the typical 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
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $799 |
| Transfer fee | $12K |
| Renewal fee | $6K |
| Inventory (initial) | $14K – $14K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 9% below the personal care & beauty norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Waxing the City until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$553K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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→$1.2MCited, not corroborated — printed on page 61 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- 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 177 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 median).
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 medians
How Waxing the City Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- Terminated
- 15
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 9.0%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 15
- Signed, not yet open
- 48
- 0.29 per open outlet · Item 20 Table 5
- Projected new
- 13
- Franchisor's next-year forecast
- 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).
Where the owners are · Item 20 owner list
42 current owners across 22 states; 24 former (terminated, transferred or not renewed) listed separately.
- CA 7
- TX 5
- GA 4
- FL 3
- MD 3
- MN 2
- NC 2
- VA 2
- AL 1
- AZ 1
- CO 1
- HI 1
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- 18.6%
- on 114 loans · 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)
- 81.4%
- 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 above 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Waxing the City from SBA 7(a) FOIA data.
- Principal loss rate
- 4.2%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 7.98%
- Avg chargeoff amount
- $196K
- Lender concentration
- 20.2%
- Job velocity
- 3.5 per $100K
- NAICS benchmark
- 5.1%
- NAICS 812199
- Jobs supported
- 1,275
Top SBA lendersTop lender holds 20% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Platinum Bank | 23 | $10.2M | N/A |
| 2 | Wells Fargo Bank National Association | 20 | $5.2M | 26.7% |
| 3 | The Huntington National Bank | 19 | $4.7M | 66.7% |
| 4 | Manufacturers and Traders Trust Company | 6 | $1.8M | 0.0% |
| 5 | Simmons Bank | 3 | $1.2M | 0.0% |
| 6 | Security Savings Bank | 3 | $741K | 0.0% |
| 7 | Banner Bank | 2 | $330K | 0.0% |
| 8 | American Bank of Commerce | 2 | $344K | 0.0% |
| 9 | Readycap Lending, LLC | 2 | $100K | N/A |
| 10 | Live Oak Banking Company | 2 | $1.2M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 15 | 1 | 16.7% |
| GAGeorgia | 9 | 0 | 0.0% |
| WAWashington | 8 | 3 | 50.0% |
| CACalifornia | 7 | 0 | 0.0% |
| ILIllinois | 7 | 0 | 0.0% |
| NJNew Jersey | 6 | 0 | 0.0% |
| PAPennsylvania | 6 | 2 | 66.7% |
| MDMaryland | 5 | 0 | -- |
| COColorado | 4 | 0 | 0.0% |
| FLFlorida | 4 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 18.6% — 16% above the 16.0% national norm, i.e. higher 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)
Subject: the franchisor is a named party (defendant).
No litigation required to be disclosed regarding the Waxing the City brand itself. Two disclosed matters relate to affiliate The Bar Method: (1) Illinois AG action (2009) against Bar Method entities for unregistered franchise sales, resulting in consent decree and $5,000 penalty; (2) New York AG Assurance of Discontinuance (2009) for unregistered franchise sales, $2,500 payment.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
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)
For fiscal year ended December 31, 2025, franchisor received $202,006 in revenue from required goods/services purchases (1.47% of total revenues of $13,771,543).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 2 |
View Item 3 litigation summary
No litigation required to be disclosed regarding the Waxing the City brand itself. Two disclosed matters relate to affiliate The Bar Method: (1) Illinois AG action (2009) against Bar Method entities for unregistered franchise sales, resulting in consent decree and $5,000 penalty; (2) New York AG Assurance of Discontinuance (2009) for unregistered franchise sales, $2,500 payment.
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 43 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Field support
- 480 hrs/yr
- On-site visits per year
- Site selection
- Franchisee selects site, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- ProVision-provided studio management / POS software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProVision-provided studio management / POS software
Item 20 · call current owners
Franchisee Contacts
66 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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.
Who owns Waxing the City?
Waxing the City is franchised by Waxing the City Franchisor LLC. Its parent company is Purpose Brands Holdings, LLC. Source: FDD Item 1, 2026 filing.
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 18.6% across 114 loans, meaning 18.6% 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 B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.