European Wax Center
European Wax Center offers high-end facial and body hair removal services with locations across the U.S., specializing in waxing and related skin care treatments. Known for luxury grooming, it operates in the competitive beauty and wellness franchise sector.
European Wax Center franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operating a European Wax Center franchise ranges from $331,600.00 to $776,950.00. This includes the Franchise Fee and other estimated costs as detailed in ITEM 7 [p.35].
What is the initial franchise fee?
The initial franchise fee for new franchisees is $45,000.00, while for existing franchisees, it is $36,000.00 [p.27]. This fee is paid in a lump sum via wire transfer when you sign the Franchise Agreement [p.18].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6.00% of Gross Sales [p.106], while the Ongoing Advertising Obligation requires spending a minimum of three percent (3.00%) of Gross Sales on advertising and promotion of the Franchised Center and the European Wax Center brand [p.24, p.126]. Additionally, during the Cure Period, if applicable, the franchisee must pay increased royalty fees: 150% for the first 90 days and 200% for the next 90 days of the cure period [p.376]. This isn't specified in the excerpts regarding advertising fees specifically, but it is noted that a portion of the Ongoing Advertising Obligation may be contributed to the Marketing Fund [p.126].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the renewal process beyond requiring a notification sixty (60) days prior to the lease expiration for renewal options [p.112].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit a transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. This indicates there are specific criteria the franchisor must consider before approving a transfer.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.326]. Additionally, good cause for termination includes the franchisee's failure to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to do so, which cannot exceed 30 days [p.5(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts focus on financial reserves after becoming a franchisee, such as maintaining cash reserves for operating costs, but do not detail specific net worth or liquid capital requirements for qualification.
Do I get an exclusive or protected territory?
You receive a protected territory but not an exclusive one. The protected territory is designed to limit new European Wax Center franchises within your area, though you may still face competition from other franchisees, company-owned outlets, and competitive brands controlled by the franchisor [p.56]. This protection can be altered if the franchisor acquires a competitive business or is acquired itself [p.56].
What training and ongoing support does the franchisor provide?
The franchisor provides initial franchisee training programs [p.376] and offers various ongoing and refresher training supports from time to time [p.376]. These include virtual training sessions, in-person training at their corporate offices, and Strut to Success Training for center managers [p.376]. Additionally, the franchisor encourages consulting with regional support teams for local training opportunities [p.376].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing franchise center if you are purchasing one, but generally does not make financial performance representations about future or past performance [p.75]. However, some locations have achieved certain results, though individual outcomes will vary [p.75]. Written substantiation can be provided upon reasonable request [p.75].
What am I restricted to selling, and where must I buy supplies?
You are required to offer only the retail services and products specified by the franchisor. You may not sell any unauthorized services or products, and you must discontinue offering unapproved items if disapproved by the franchisor [p.62]. For equipment and furniture, you must purchase or lease from suppliers designated by the franchisor; these items might be more expensive than those available elsewhere [p.3]. Additionally, you are restricted from establishing an internet presence or engaging in marketing activities online without prior written consent from the franchisor [p.45].