If you are looking towards opening a European Wax Center Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
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European Wax Center was founded in 2004 and they began franchising in 2006, about 14 years ago. David Berg is the present CEO of the company and they have their corporate head office at Hallandale Beach – Aventura, FL 33280, USA. European Wax Center owns and operates 550 franchises in the United States of America.
From their company headquarters in Hallandale Beach, Florida, to their marketing office in New York City, to each one of their over 550 centers nationwide, their promise begins with their unique company culture and continues through their unwavering devotion to values and lifestyle of good business. It’s this philosophy that has catapulted them to the leaders in the industry, with a thriving national footprint in over 41 states.
Today, they are a lifestyle beauty brand admired by millions for their all-natural COMFORT WAX®, their exclusive 4 Steps to Gorgeous® process, and their propriety collection of services and products that enable everyone to feel pampered, confident, and beautiful in their own skin. European Wax Center was ranked No. 82 in 2011 on the Inc. 500 list of fastest-growing private companies.
Here are areas where you are expected to spend money and the cost associated with it;
- Initial Franchise Investment: $359,660 – $564,515
Please note that the total cost to open a European Wax Center club ranges from $359,660 – $564,515 depending on the size of the space. You will need minimum liquid assets of $100,000 and a net worth of $500,000 either individually or cumulatively amongst a group of investors to obtain necessary bank financing.
- Franchise Fee: $45,000
- Royalty Fee: 6 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by European Wax Center and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse European Wax Center if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to European Wax Center if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if European Wax Center is required to defend your unsuccessful claim against it.
- Veteran Incentives: This incentive is negotiable
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: European Wax Center has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, and inventory amongst others.
In Summary,
- Initial Investment: $359,660 – $564,515
- Net-worth Requirement: $1,000,000
- Liquid Cash Requirement: $500,000
- Ongoing Initial Franchise Fee: $45,000 – $45,000
- Ongoing Royalty Fee: 6%
- Ad Royalty Fee: 3%