Not sure if Waxing the City is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get Matched
Waxing the City
How much does Waxing the City cost?
Initial Investment Range
$310,774 to $646,420
Franchise Fee
$98,544 to $149,105
Waxing the City Franchisor LLC is offering franchises for the use of the trademark “WAXING THE CITY®” and related trademarks and service marks for the operation of a business offering a studio experience focused on body and facial waxing for men and women and the sale of related products and services.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Waxing the City March 31, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
Medium Risk
Explanation
The franchisor’s manager, Anytime Fitness, LLC, shows a significant members' deficit on its balance sheet. However, the franchise obligations are guaranteed by SEB Franchising Guarantor LLC, which holds $5 million in cash with no liabilities. This guarantee provides a strong backstop, but the complex corporate structure and the manager's balance sheet introduce financial intricacies that could pose a risk if the guarantee is not sufficient to cover widespread system issues.
Potential Mitigations
- A franchise accountant should analyze the financial statements of the manager and the guarantor, paying close attention to cash flow, profitability, and the nature of the guarantee.
- Understanding the full implications of the complex parent and affiliate structure requires a thorough review with your franchise attorney.
- Your business advisor can help you assess how the franchisor's complex financial structure might impact its ability to provide long-term support.
High Franchisee Turnover
High Risk
Explanation
The data in the FDD indicates a significantly high rate of franchisee terminations. Item 20 Table 3 shows 16 terminations in 2024, representing an 11% turnover rate of the starting units. More concerningly, the list of former franchisees in Exhibit C appears to show 43 terminations during the same period, which would be an exceptionally high rate of over 25%. This level of turnover may signal systemic problems, such as unprofitability or franchisee dissatisfaction.
Potential Mitigations
- It is critical to contact a significant number of former franchisees listed in Exhibit C to understand their reasons for leaving the system.
- Your accountant should help you analyze the conflicting turnover data between Item 20 and Exhibit C to assess the potential financial risk to your investment.
- A franchise attorney can help you formulate specific questions for the franchisor regarding the high rate of terminations and the data discrepancies.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD package. Rapid, uncontrolled growth can strain a franchisor's ability to provide quality support, training, and resources to all franchisees. It is a potential warning sign that the system may be prioritizing expansion over the long-term success of its individual unit operators. You should assess if the franchisor's support infrastructure is keeping pace with its growth.
Potential Mitigations
- With your business advisor, you can analyze the growth trajectory in Item 20 and ask the franchisor about their plans to scale support systems.
- Discussing the quality and timeliness of franchisor support with both new and established franchisees can provide valuable insight.
- An accountant can review the franchisor's financial statements to determine if they have allocated sufficient resources to support their growth.
New/Unproven Franchise System
Medium Risk
Explanation
The franchisor, Waxing the City Franchisor LLC (WTC), was formed in 2021 and acquired the system from a predecessor. While the brand has a longer history, this specific franchisor entity is relatively new and is part of a recent, complex corporate restructuring under new parent companies. This newness of the franchisor entity itself introduces risks related to management's specific experience with this brand and the stability of the recently integrated corporate structure.
Potential Mitigations
- A business advisor can help you investigate the track record of the new parent company and its management team.
- Speaking with franchisees who have been in the system through the transition can provide insight into changes in support and operations.
- Your attorney should review the details of the securitization transaction and corporate restructuring described in Item 1.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. Some business concepts can be based on temporary trends or fads, which presents a risk to the long-term viability of your investment. It is important to assess whether the products or services offered have sustainable consumer demand that will outlast current market trends. Your franchise agreement will still be binding even if public interest in the concept declines.
Potential Mitigations
- A business advisor can help you conduct independent market research to evaluate the long-term consumer demand for the services offered.
- You should ask the franchisor about their strategy for product and service innovation to adapt to changing market tastes.
- Reviewing industry reports and competitor performance with a financial advisor may offer clues about the market's stability.
Inexperienced Management
High Risk
Explanation
The FDD discloses that several new key executives, including the CEO and Brand President, started in late 2024. Furthermore, Item 4 reveals that the CEO and CFO were executives at other companies that filed for bankruptcy shortly after their departure, and the Brand President has a prior personal bankruptcy. This combination of recent executive turnover and disclosed bankruptcy history for key leaders presents a risk regarding management stability, experience with this specific system, and past business judgment.
Potential Mitigations
- It is advisable to discuss the management team's background and the context of the prior bankruptcies with your attorney and business advisor.
- Asking the franchisor directly about the recent leadership changes and their vision for the company is a prudent step.
- Contacting franchisees to gauge their confidence in the new management team can provide valuable firsthand perspectives.
Private Equity Ownership
Medium Risk
Explanation
Item 1 discloses a complex ownership structure leading up to a parent company, Purpose Brands Holdings, LLC, which is a hallmark of private equity involvement. This structure can create risks that decisions will prioritize short-term investor returns over the long-term health of the system or franchisee profitability. The recent securitization transaction and corporate restructuring are also characteristic of a PE-backed company, which may have a defined timeline for exiting its investment.
Potential Mitigations
- It's beneficial to work with a business advisor to research the private equity firm's reputation and its track record with other franchise brands.
- Engaging with franchisees to understand any changes in fees, support, or strategy since the change in ownership can be insightful.
- A thorough review of the franchisor's assignment rights in the Franchise Agreement with your attorney is crucial to understand what happens if the system is sold.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. When a franchisor is a small or thinly capitalized subsidiary, it is important that its parent company is also disclosed, and its financial statements provided, if the parent guarantees the franchisor's performance or is otherwise fundamental to its operation. A failure to disclose a relevant parent could obscure the true financial health and backing of the franchise system.
Potential Mitigations
- Your attorney can help you verify the corporate structure to see if there is an undisclosed parent company that may be material to your investment decision.
- An accountant should review the provided financial statements to assess if the franchisor appears to be a shell entity dependent on an undisclosed parent.
- It is prudent to ask the franchisor to clarify the roles and responsibilities of all parent and affiliate companies.
Predecessor History Issues
Low Risk
Explanation
The franchisor entity was formed in 2021 and acquired the system from its predecessor, Waxing the City Worldwide, LLC, as part of a securitization transaction. The FDD provides information on this predecessor and the complex corporate history involving multiple affiliated brands. While the history appears to be disclosed, the complexity of these inter-company transfers and relationships could obscure inherited issues from the predecessor's operations.
Potential Mitigations
- A review of the predecessor's history and the securitization transaction with your franchise attorney is important to understand any inherited risks.
- Asking long-term franchisees about their experience under the predecessor and through the transition can provide valuable context.
- A business advisor can help you research the public record for any information about the predecessor's performance or past disputes.
Pattern of Litigation
Medium Risk
Explanation
The FDD discloses one recent lawsuit where the franchisor sued a franchisee for breaching the non-compete agreement, which the franchisor won. It also discloses historical regulatory actions from 2009 against an affiliate, The Bar Method, for selling franchises without proper registration. While not a pattern of franchisee-initiated fraud claims, the litigation shows a willingness to enforce restrictive covenants and a history of regulatory issues within the broader family of brands.
Potential Mitigations
- Your attorney should review the details of the disclosed litigation to understand the context and outcome.
- A discussion with your business advisor can help you assess the franchisor's approach to enforcing its franchise agreement.
- It is important to consider the history of regulatory compliance across all affiliated brands mentioned in the FDD.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Related Beauty Franchises
Beauty Bungalows
$936,650 to $2,221,900
Glo Tanning
$462,299 to $917,650
M Browz
$273,465 to $439,900
Oasis Face Bar
$163,945 - $384,462
Palm Beach Tan
$648,453 to $1,131,247
Skin Experts By Brentwood Spa
$375,100 to $865,100
Sugar Sugar
$161,700 to $576,255
Sugaring LA
$313,250 to $506,500
The Lash Lounge
$269,063 to $860,080
Uni K Wax
$329,985 to $713,925
Waxing the City
$310,774 to $646,420
Xtension Envy
$322,750 to $583,750