Urban Waxx
Urban Waxx offers waxing and sugaring services for various body parts through franchised locations. Known for comprehensive hair removal solutions, it operates in the aesthetic salon franchise industry.
Urban Waxx franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open your first Franchised Business is between $268,000 and $638,500. This includes payments to the franchisor or affiliate ranging from $79,500 to $594,500 [p.1].
What is the initial franchise fee?
The initial franchise fee is $50,000 [p.12]. This fee is fully earned and non-refundable upon payment [p.12], and it is deferred until the franchised business is open for business [p.128, p.129].
What are the ongoing royalty and advertising fees?
The franchisee must contribute a monthly Brand Fee (which is part of the Royalty Fee) of $1,000 to the National Advertising Fund starting from the first month after the Franchised Business opens. This fee continues for the duration of the agreement term [p.72].
How long is the initial franchise agreement, and can I renew it?
The term of the transferred franchise is the unexpired term of the current franchise agreement, including all renewal rights, subject to any conditions applicable to such renewal rights [p.130]. However, this information does not specify an exact duration for the initial franchise agreement or provide details on the renewal process beyond mentioning that it includes renewal rights [p.130].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires obtaining and delivering a bona fide, executed written offer or proposal to purchase along with all pertinent documents to the franchisor. This requirement applies unless the sale or transfer is to a family member [p.97]. For transfers other than to family members, good cause may still be required for the franchisor to refuse the transfer [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement immediately for insolvency, abandonment, mutual agreement to terminate, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, monies owed to the franchisor more than 5 days past due, and imminent danger to public health or safety. [p.169] Additionally, there is a 60-day opportunity to cure for other breaches of the Franchise Agreement. [p.169]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You receive a protected territory [p.68], meaning the franchisor promises not to establish another company-owned or franchised outlet selling similar goods or services within your approved location and a three-mile radius, referred to as your 'Protected Territory' [p.35]. However, this protection does not extend to other franchisees outside of your Protected Territory [p.35], and you may face competition from other Urban Waxx locations [p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program consisting of approximately 120 hours covering various aspects such as management, operations, brand standards, and more [p.32]. Additionally, they cover travel and living expenses for up to four people (the franchisee and three employees) during this initial training period [p.20]. There is no specific mention of ongoing support in the provided excerpts.
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 outlet being considered for purchase [p.50]. Additionally, they can supplement the information given in Item 19 with possible performance data under certain circumstances [p.47]. However, the franchisor does not make any financial performance representations other than providing actual records of an existing outlet if purchased [p.46, p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those goods and services that the franchisor has approved and designating you to offer. Additionally, you must purchase certain inventory and supplies such as retail line, wax, wax tools and pots, and logoed uniforms from Kit, LLC, which is the sole approved supplier for these items [p.20, p.13]. This supply cost ranges between $15,000 to $30,000 [p.20, p.13].