Waxing the City Franchise Loan: The Complete Financing Guide for Waxing the City Franchise Owners
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Waxing the City Franchise Loan: The Complete Financing Guide for Waxing the City Franchise Owners

Waxing the City has become one of the fastest-growing boutique waxing franchises in the United States, offering a specialized, studio-based model that attracts both seasoned entrepreneurs and first-time business owners. With the beauty services industry showing resilient growth year over year, a Waxing the City franchise represents a compelling business opportunity - but like any franchise investment, getting the right financing in place is crucial before opening your studio doors.

This complete guide walks you through everything you need to know about Waxing the City franchise costs, available financing options, how to qualify for a franchise loan, and how Crestmont Capital helps aspiring franchisees secure the capital they need to succeed.

What Is Waxing the City?

Waxing the City is a national franchisor of dedicated waxing studios founded in 2003 in Denver, Colorado. Unlike full-service salons that offer waxing as one of many services, Waxing the City focuses exclusively on hair removal - primarily waxing services - creating a specialized, efficient, and consistent experience for clients. The brand has grown to hundreds of locations across the United States and continues to expand.

The business model centers on a studio format, typically ranging from 1,000 to 1,500 square feet, that is designed for efficiency and high client throughput. Each studio features dedicated waxing rooms (called "cerologist suites"), a reception area, and a retail section for post-wax products. The focus on a single service category creates streamlined training requirements, predictable supply chains, and strong repeat client relationships - all factors that appeal to lenders when evaluating franchise loan applications.

According to the U.S. Small Business Administration, the beauty services sector remains one of the more recession-resistant business categories, with consumer demand for personal care services showing strong resilience even during economic downturns. Waxing services, in particular, benefit from a recurring-visit model - clients typically return every four to six weeks, creating predictable monthly revenue.

Industry Snapshot: The U.S. hair removal services market was valued at over $3.5 billion annually, with waxing representing the dominant segment. The shift toward specialized studios and away from full-service salons has driven strong growth for brands like Waxing the City that deliver focused, high-quality services at accessible price points.

Waxing the City offers franchisees comprehensive training programs, ongoing operational support, marketing assistance, and access to proprietary products. The franchise structure is designed to allow owners to focus on running their business rather than developing systems from scratch - a significant advantage for first-time business owners and experienced operators alike.

Waxing the City Investment Requirements

Before exploring financing options, understanding the full investment picture for a Waxing the City franchise is essential. These figures are based on publicly available Franchise Disclosure Document (FDD) data and may vary based on location, build-out conditions, and market factors.

Initial Franchise Fee: Approximately $30,000 to $45,000 for a single studio location. Multi-unit development agreements may offer reduced per-unit fees.

Total Estimated Investment: The total investment to open a Waxing the City franchise typically ranges from $150,000 to $500,000. This range accounts for variables including:

  • Studio build-out and leasehold improvements
  • Equipment and furniture (treatment tables, wax warmers, reception furniture)
  • Initial inventory (wax products, retail merchandise)
  • Signage and branding installation
  • Training costs and travel
  • Working capital for the first three to six months
  • Technology and point-of-sale systems
  • Pre-opening marketing and grand opening expenses

Ongoing Royalty Fees: Waxing the City franchisees pay a royalty fee to the franchisor based on gross revenue, typically in the range of 6% of monthly gross sales. There is also a marketing fund contribution, often around 2% of gross sales, which funds national and regional advertising campaigns.

Liquid Capital Requirement: Prospective franchisees are generally required to demonstrate liquid assets (cash and easily liquidated investments) of at least $75,000 to $100,000. This requirement ensures you have reserves to cover operating costs before the studio reaches profitability.

Net Worth Requirement: The minimum net worth requirement is typically in the range of $200,000 to $300,000, though individual franchisors may adjust this based on market conditions and the franchisee's overall financial profile.

By the Numbers

Waxing the City Franchise - Key Investment Stats

$150K-$500K

Total investment range

6%

Ongoing royalty fee

$75K+

Liquid capital required

400+

U.S. studio locations

Franchise Financing Options

Opening a Waxing the City franchise requires significant capital, and most franchisees use a combination of personal funds and external financing. Here are the primary financing options available to prospective Waxing the City franchise owners.

SBA 7(a) Loans

The SBA 7(a) loan program is one of the most popular financing vehicles for franchise purchases. These government-backed loans offer competitive interest rates, longer repayment terms (up to 10 years for working capital, 25 years for real estate), and lower down payment requirements than conventional loans. Loan amounts can reach $5 million, making SBA 7(a) loans suitable for covering the full investment range for a Waxing the City franchise.

Waxing the City is typically listed on the SBA Franchise Registry, which means the franchisor agreement has been pre-reviewed by the SBA, significantly streamlining the loan approval process. This can reduce documentation requirements and speed up funding timelines for approved borrowers. The SBA's 7(a) loan program provides detailed eligibility requirements on their website.

SBA 504 Loans

If your franchise plan includes purchasing real estate (rather than leasing) or significant fixed equipment, an SBA 504 loan may be appropriate. These loans are specifically designed for fixed-asset purchases and offer below-market fixed interest rates. The 504 program works through Certified Development Companies (CDCs) in partnership with conventional lenders and is best suited for larger acquisitions.

Equipment Financing

A significant portion of your Waxing the City build-out budget will go toward specialized equipment including professional-grade wax warmers, treatment tables, skincare stations, and retail display fixtures. Equipment financing allows you to acquire these assets through a loan or lease, preserving working capital for day-to-day operations. Equipment loans are often easier to qualify for than traditional business loans because the equipment itself serves as collateral.

Business Line of Credit

A business line of credit is an excellent supplemental financing tool for franchise owners. Rather than receiving a lump sum, you draw funds as needed up to an approved limit, paying interest only on what you use. This flexibility makes lines of credit ideal for managing seasonal fluctuations, purchasing additional inventory during peak periods, or covering unexpected operational expenses.

Franchisor Financing Programs

Some franchise systems, including Waxing the City, have relationships with preferred lenders or offer in-house financing options for qualified candidates. These programs may include deferred franchise fee options or vendor financing arrangements. Review the Franchise Disclosure Document and speak directly with the franchise development team to understand what financing assistance may be available.

ROBS (Rollover for Business Startups)

If you have a qualifying retirement account (401k, IRA), you may be eligible for a Rollover for Business Startups arrangement, which allows you to use retirement funds to invest in a franchise without early withdrawal penalties or taxes. This can be an effective way to fund a portion of your investment, though it comes with compliance requirements and should be structured with the help of a qualified financial advisor.

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How Crestmont Capital Helps Waxing the City Franchisees

Crestmont Capital is a leading business lender specializing in franchise financing, small business loans, and equipment funding. Our team has extensive experience working with franchisees across the beauty and personal care industry, and we understand the unique financial profile of waxing studio investments.

When you work with Crestmont Capital for your Waxing the City franchise loan, you benefit from:

  • Fast Application Process: Our streamlined application takes minutes to complete, and we provide preliminary decisions quickly so you can move forward with your franchise timeline.
  • Flexible Loan Structures: We work with a wide range of borrowers, including those with non-traditional income histories or credit profiles that may not meet conventional bank requirements.
  • Franchise-Specific Expertise: Our advisors understand the financial structure of franchise agreements, including royalty fee obligations and working capital requirements, and factor these into our underwriting process.
  • Multiple Product Options: Whether you need an SBA loan, equipment financing, or a business line of credit, Crestmont Capital can match you with the right financing product for your specific situation.
  • Ongoing Support: Your relationship with Crestmont Capital doesn't end at funding. As your studio grows, we can provide access to additional capital for multi-unit expansion or studio upgrades.

According to a report from Forbes, franchise businesses have a higher survival rate than independent businesses, making them an attractive lending opportunity for lenders who understand the franchise model. Waxing the City's established brand, operational support, and proven systems represent exactly the kind of business profile that lenders respond to positively.

Many of our clients also find it helpful to review our guides on Sola Salon Studios franchise financing and The Cleaning Authority franchise loan to understand how similar franchise investments are financed.

Get Your Waxing Studio Funded Today

Speak with a franchise financing specialist at Crestmont Capital. We'll help you structure the right loan for your investment goals.

Start Your Application →

Who Qualifies for a Waxing the City Franchise Loan

Qualification requirements for franchise loans vary by lender and loan type, but here are the general criteria that lenders consider when evaluating a Waxing the City franchise loan application:

Credit Score

For SBA-backed loans, lenders typically require a personal credit score of 680 or higher for optimal terms, though some programs accept scores as low as 620. For conventional business loans and alternative financing, requirements vary. A strong credit history signals to lenders that you manage financial obligations responsibly - a critical factor when assuming a six-figure franchise investment.

Time in Business and Business Credit

As a new franchisee, you won't have business operating history at the time of application. Lenders compensate for this by placing greater emphasis on your personal financial profile, industry experience, and the franchisor's track record. Having prior management experience in a service business or personal care industry is a plus. If you're purchasing an existing Waxing the City location rather than opening a new one, established business revenue becomes a key underwriting factor.

Personal Financial Strength

Lenders will review your personal tax returns (typically two to three years), personal financial statement, bank statements, and documentation of liquid assets. Demonstrating that you can meet the franchisor's liquid capital requirements is a baseline expectation. Strong personal net worth that exceeds the loan amount provides additional security to lenders.

Down Payment

Most franchise loans require a down payment of 10% to 30% of the total project cost, depending on the loan type and lender. SBA loans often allow lower down payments, sometimes as low as 10% to 15% for strong borrowers, while conventional loans typically require 20% to 30%. Having more equity in your investment often leads to better loan terms.

Business Plan

A comprehensive business plan is required for most franchise loan applications. Your plan should include projected revenue for the first two to three years, operating cost assumptions (including royalty fees and marketing contributions), break-even analysis, management team qualifications, and a description of your target market. Waxing the City's franchising team can provide market data and operational benchmarks to support your projections.

Pro Tip: Lenders look favorably on franchisees who have the franchisor's written support for their application. Ask the Waxing the City franchise development team to provide a letter of intent or approval confirmation, as this significantly strengthens your loan application and demonstrates the franchisor's confidence in your candidacy.

Comparison to Other Financing Options

Understanding how different financing options stack up against each other helps you make an informed decision for your Waxing the City franchise investment.

Loan Type Typical Amount Interest Rate Term Best For
SBA 7(a) Loan Up to $5M Prime + 2.25-4.75% Up to 10 years Full franchise build-out
Equipment Financing $10K-$500K 6-20% 2-7 years Wax stations, furniture
Business Term Loan $25K-$1M 8-30% 1-5 years Working capital, expansion
Business Line of Credit $10K-$250K 8-24% Revolving Inventory, seasonal needs
Conventional Bank Loan $50K-$5M+ Prime + 1-3% 3-10 years Established borrowers

Many Waxing the City franchisees use a blended approach - for example, an SBA loan to cover the build-out and franchise fee, combined with equipment financing for specialized waxing equipment, and a small line of credit for working capital. This multi-product approach minimizes the total loan amount needed from any single source and often results in better overall terms.

Real-World Financing Scenarios

To help you visualize how franchise financing works in practice, here are three scenarios representing different investor profiles and financing approaches.

Scenario 1: First-Time Franchisee with Strong Personal Finances

Sarah is leaving her corporate career to open a Waxing the City studio in a suburban market. She has $150,000 in personal savings, a credit score of 720, and a successful management background. Total project cost is estimated at $350,000. She contributes $87,500 (25%) as a down payment and secures a $262,500 SBA 7(a) loan through Crestmont Capital at a rate of prime plus 2.75%. Her monthly loan payment is approximately $2,800 on a 10-year term, which fits comfortably within her projected studio cash flow after the ramp-up period.

Scenario 2: Multi-Unit Developer

James already owns two successful retail businesses and wants to diversify by opening two Waxing the City studios simultaneously through a multi-unit development agreement. Total investment across both studios is projected at $650,000. He uses $130,000 of his own capital as a down payment, secures a $400,000 SBA loan for studio build-outs, and arranges a separate $120,000 equipment financing package for waxing equipment and retail fixtures across both locations. This blended structure keeps his monthly obligations manageable while maximizing his leverage.

Scenario 3: Purchasing an Existing Studio

Maria identifies a profitable Waxing the City location in an established market where the current owner is retiring. The acquisition price is $280,000, which includes the business value, existing equipment, lease assignment, and remaining franchise term. Because the studio has a three-year revenue history, lenders evaluate the actual financials rather than projections, making approval significantly more straightforward. Maria secures a $210,000 SBA business acquisition loan with a $70,000 down payment and takes over operations with immediate cash flow from day one.

Franchise Advantage: A CNBC analysis found that franchised businesses are significantly more likely to secure financing than independent startups, partly because lenders can evaluate the overall system performance, not just a single untested concept. Waxing the City's established brand presence and national support infrastructure make franchisees more appealing loan candidates.

Business professional reviewing franchise loan documents at a desk with financial advisor in a modern office

Frequently Asked Questions

How much does it cost to open a Waxing the City franchise? +

The total investment to open a Waxing the City franchise typically ranges from $150,000 to $500,000, depending on location, market conditions, and build-out requirements. This includes the initial franchise fee ($30,000 to $45,000), leasehold improvements, equipment, initial inventory, working capital, and pre-opening expenses. Contacting the Waxing the City franchise development team and reviewing the current Franchise Disclosure Document will give you the most accurate current figures.

Can I get an SBA loan for a Waxing the City franchise? +

Yes, SBA loans are commonly used for Waxing the City franchise financing. Waxing the City is typically listed on the SBA Franchise Registry, which means the franchise agreement has been pre-reviewed and accepted by the SBA. This streamlines the approval process. SBA 7(a) loans can fund up to $5 million with terms up to 10 years for working capital, making them well-suited for the full range of Waxing the City investment amounts.

What credit score do I need to get a franchise loan? +

For SBA loans, most lenders require a minimum personal credit score of 680, though some programs accept scores as low as 620 with compensating factors. For conventional business loans, requirements typically range from 650 to 720. Alternative lenders and equipment financing providers may work with lower scores. A higher credit score generally results in better interest rates and loan terms. Before applying, review your credit report for any errors and take steps to address any outstanding negative items.

How much working capital should I have for a Waxing the City franchise? +

Waxing the City's FDD typically recommends having three to six months of working capital reserves available at opening. This capital covers operating expenses - payroll, rent, utilities, supplies, and royalty fees - before the studio reaches break-even. For most studio models, this translates to $30,000 to $80,000 in liquid reserves beyond the initial build-out investment. Including adequate working capital in your loan request is important; under-capitalization is a primary reason franchise businesses struggle in their early months.

Does Waxing the City offer any financing assistance? +

Waxing the City has relationships with preferred lending partners and may offer access to financing resources for qualified franchisee candidates. Some franchisors provide in-house financing or vendor financing arrangements for equipment. The best way to learn about current financing options is to speak directly with the Waxing the City franchise development team during the discovery process. Regardless of franchisor resources, working with an independent lender like Crestmont Capital ensures you explore all options and secure the most competitive terms available.

How long does it take to get a franchise loan approved? +

Franchise loan approval timelines vary by loan type. SBA loans typically take 30 to 90 days from application to funding, depending on document completeness and lender workload. Equipment financing can often be approved within 3 to 5 business days. Alternative business loans and lines of credit may fund within 24 to 72 hours for qualified borrowers. Starting your financing process early in the franchise purchase journey - ideally before signing the franchise agreement - gives you the most flexibility and reduces timeline pressure.

What is the Waxing the City royalty fee? +

Waxing the City charges a royalty fee of approximately 6% of monthly gross sales, plus a marketing fund contribution of approximately 2% of gross sales. These ongoing fees are important to factor into your cash flow projections when calculating break-even and profitability timelines. Most lenders will ask you to account for these fees in your projected income statement. For precise current figures, always reference the official Franchise Disclosure Document.

Can I finance multiple Waxing the City locations? +

Yes, multi-unit development is a common path for experienced franchisees and investors. Many lenders, including those offering SBA loans, can structure financing for multi-unit development agreements. Typically, lenders require each location to be evaluated individually for financing purposes, though some may offer portfolio structures for well-qualified borrowers. Having a strong track record from your first location - demonstrated through tax returns and financial statements - significantly improves your ability to secure financing for additional studios.

What documents do I need for a franchise loan application? +

A typical franchise loan application requires personal tax returns for the past two to three years, personal financial statement, credit authorization, resume or biography summarizing your business background, the signed Franchise Disclosure Document and franchise agreement (or letter of intent), a business plan with financial projections, bank statements for the past three to six months, and documentation of your down payment and liquid assets. For SBA loans, additional forms such as the SBA Form 1919 (borrower information) and Form 413 (personal financial statement) are also required.

Is a personal guarantee required for a franchise loan? +

Yes, most franchise loans - including SBA loans - require a personal guarantee from the business owner(s). A personal guarantee means you are personally responsible for repaying the loan if the business cannot meet its obligations. For SBA loans, any individual owning 20% or more of the business must personally guarantee the loan. This is standard practice in franchise lending and reflects the significant role individual owners play in the success of small franchise businesses. Some lenders may accept a limited personal guarantee depending on the deal structure and borrower profile.

How does the Waxing the City franchise model compare to opening an independent salon? +

A Waxing the City franchise has significantly higher startup costs compared to an independent waxing salon, primarily because of the franchise fee and required build-out standards. However, you also receive a proven business system, national brand recognition, training, operational support, and access to preferred vendor pricing. From a financing perspective, lenders typically view franchise investments more favorably than independent salons because the franchise model reduces operational risk and provides a track record through the broader franchise system's performance data.

What is the typical break-even timeline for a Waxing the City franchise? +

Break-even timelines vary significantly based on location, market competition, staff productivity, and local marketing effectiveness. Many Waxing the City franchisees report reaching monthly operational break-even within six to eighteen months of opening. This is the point at which monthly revenue covers operating expenses, loan payments, royalty fees, and owner salary. Building a loyal client base through consistent service quality and local marketing is the primary driver of reaching break-even faster. Your lender will want to see conservative projections that account for a ramp-up period before profitability.

Can I use retirement savings to fund my Waxing the City franchise? +

If you have a qualifying retirement account, you may be eligible for a ROBS arrangement (Rollover for Business Startups), which allows you to use 401k or IRA funds to invest in a franchise without incurring early withdrawal penalties or income taxes at the time of the rollover. This can be an effective way to fund a portion of your down payment or reduce the loan amount needed. However, ROBS structures must be properly established and maintained by qualified professionals to remain compliant. Consult a ROBS specialist before pursuing this approach.

Are there grants available for small business franchise owners? +

While federal and state grants for franchise businesses are relatively limited compared to loans, there are some grant programs targeted at specific demographics including women-owned businesses, minority-owned businesses, and veteran-owned businesses. Additionally, some local economic development agencies offer small business grants or incentive programs for businesses opening in designated areas. The SBA's website, local Small Business Development Centers (SBDCs), and state economic development offices are good starting points for grant research. However, grants are typically smaller amounts and more competitive than loans.

How do I find the right lender for my Waxing the City franchise loan? +

Finding the right lender starts with understanding your financing needs: total loan amount, preferred repayment term, urgency of funding, and your personal financial profile. Look for lenders with experience in franchise financing specifically, as they understand the unique underwriting requirements for franchise investments. Ask for references from other franchise borrowers, compare loan terms from multiple sources, and pay attention to not just the interest rate but also fees, prepayment penalties, and ongoing reporting requirements. Crestmont Capital specializes in franchise financing and can help you navigate all of these factors to find the best fit for your Waxing the City investment.

How to Get Started

1
Evaluate Your Financials
Review your credit score, liquid assets, and net worth against Waxing the City's minimum requirements. Identify any gaps and develop a plan to address them before applying.
2
Contact Waxing the City
Reach out to the Waxing the City franchise development team to get the current FDD, discuss territory availability in your target market, and understand the full investment requirements.
3
Apply for Financing
Submit your franchise loan application at offers.crestmontcapital.com/apply-now. Our team will review your application and connect you with the right financing solutions for your investment.
4
Prepare Your Business Plan
Work with a financial advisor to develop detailed revenue projections, expense budgets, and break-even analysis for your franchise location. A strong business plan is essential for loan approval.
5
Open Your Studio
Once financing is secured and the franchise agreement is signed, work with Waxing the City's opening team to complete your build-out, hire staff, and launch your studio with the full support of the franchise system behind you.

Conclusion

A Waxing the City franchise represents a compelling business opportunity in the growing beauty services sector, backed by a recognized national brand and comprehensive operational support. The waxing the city franchise cost range of $150,000 to $500,000 is significant but manageable with the right financing strategy, and the recurring-visit business model creates steady, predictable revenue that appeals to both franchisees and lenders alike.

Whether you're a first-time business owner or an experienced entrepreneur adding a beauty franchise to your portfolio, understanding your financing options early in the process gives you a significant advantage. From small business financing and SBA loans to equipment financing and lines of credit, Crestmont Capital offers the products and expertise to help you build a successful Waxing the City franchise.

According to Reuters, the personal care industry has demonstrated consistent growth trends, driven by rising consumer spending on wellness and self-care services. The specialized waxing studio model positions franchisees to benefit from this long-term trend.

Start your journey today by applying for franchise financing through Crestmont Capital. Our team of franchise lending specialists is ready to help you evaluate your options, structure the right loan, and take the next step toward owning your Waxing the City studio.

Ready to Open Your Waxing the City Studio?

Apply now and get a decision fast. Crestmont Capital has helped hundreds of franchise owners secure the funding they need to succeed.

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Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.
Allan Garfinkle

About Author: Allan Garfinkle

Allan Garfinkle is the Chief Revenue Officer at Crestmont Capital, where he has spent more than a decade leading revenue strategy, business development, and operational growth. With 28 years of experience building and advising startups and small businesses, Allan has helped more than 10,000 business owners navigate financing decisions, growth opportunities, and changing economic conditions. He earned a Bachelor of Science in Economics and an MBA with a concentration in Finance from Northeastern University, as well as a Juris Doctor from New England Law, where his studies focused on contracts and business law. His writing draws on extensive practical experience in small-business lending, equipment financing, business credit, and commercial finance.

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