Waxing the City

Can you provide a detailed breakdown of the 15 closures and 15 terminations in 2024 and 2025? What specific reasons led to these terminations, and were any franchisor-related operational or support issues involved?

The technology fee of $799/month is nearly double the typical range for this category. What does this fee cover, and is it mandatory for all franchisees or only for certain service offerings?

Your 1-year turnover and termination rates are both 10%, compared to typical rates of 0-6.85% and 0-1.95% respectively. How does this compare to your expectations, and what actions is the system taking to reduce these rates?

The initial term is 6 years versus the typical 10 years for this category. Why is the term shorter, and what is the typical outcome for franchisees seeking renewal at year 6?

What are the 8 renewal conditions required to renew the franchise agreement? Are any of these contingent on franchisor approval, and what percentage of franchisees successfully renew?

The franchise agreement allows for immediate termination on 8 non-curable defaults with only a 30-day cure period for most defaults. Can you provide examples of these 8 non-curable defaults and clarify which defaults fall outside the cure period?

Personal guarantees are required from each individual owner and their spouse. If the franchise fails, what is the extent of personal liability, and are there any limitations on the franchisor's collection efforts?

The franchisor is the sole supplier of hard and soft wax with 5 total supplier restrictions in place. What is the markup on franchisor-supplied products compared to independent market prices, and can franchisees negotiate volume discounts?

Renewal requires renovation and re-equipping of the studio as defined by the franchisor. What is the typical cost of this renovation, and is there flexibility in timing or specifications?

Late payments incur interest at 1.5% per month (approximately 18% annually). What is the payment grace period, and at what point does the late payment clause trigger?

Territory is protected but not exclusive. How does the franchisor define protected territory, and what specific encroachment protections prevent them from opening competing units nearby?

What is the historical renewal fee trend? The current renewal fee is $6,000—has this increased over time, and are there any additional fees or requirements at renewal beyond the stated $6,000?

Can you provide contact information for 5-10 franchisees who have operated for at least 3 years in similar markets? Specifically, request those who have recently renewed or are considering renewal or exit.

The system grew from 118 to 150 units in 3 years (27% growth). How many of these new units are in existing markets versus new geographic territories, and what is the franchisee acquisition cost per unit?

Are there any pending or anticipated changes to the franchise agreement, fee structure, or operational requirements in the next 12-24 months?

The contract terms score is 54, significantly below the typical 60-65 range. What specific contractual provisions contribute to this lower score, and are any of these negotiable?

What support and training does the franchisor provide post-opening, and is there a dedicated support team for franchisees experiencing declining sales or operational challenges?

The non-compete clause is 2 years and 10 miles. If a franchisee exits, what specific restrictions apply, and how does the franchisor enforce this covenant?

Minimum royalty payments are required regardless of sales levels. What is the typical minimum monthly royalty amount, and what percentage of franchisees pay only the minimum due to lower sales?