Lunchbox Wax Franchise Review (2021)
Written by: Patrick Findaro
LunchboxWax is a premier waxing salon, they are extremely selective about everything from the employees to location. They have designed a proven waxing service that is followed up by specially formulated products to make the experience flawless – both at their salon and in client’s homes.
They are a full-service, speed-waxing salon that caters to both men and women who are selective when it comes to personal care. Offering a range of services to address any hair removal need. From brows to bums, cheeks to chest, they help guests get smooth and stay that way for weeks. Because waxing is all they do, their carefully selected and expertly trained “waxologists” are masters of their craft.
Management Team in a Waxing Salon
LunchboxWax CEO and Founder Debi Lane saw the need for a wax-only salon after owning and operating her multi-service day spa for years. In 2010, she launched LunchboxWax, and in 2013, the company started awarding franchises.
They take great pride in helping franchisees succeed at running their own waxing business, assisting with everything from site selection to ongoing mentorship and comprehensive training.
Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Health and Beauty Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com Analysis
LunchBoxWax: Waxing Salon Franchise Strengths
Operationally simple with all the “waxologists” already with their certifications.
Recurrent revenue streams.
Ability to have a manager run the day-to-day of the business.
Has a strong brand since they have been in the market for a few years.
Franchise Weaknesses
Reliant on skilled professionals to deliver the service that the customer expects.
Operates in a competitive environment with low barriers of entry.
Opportunities
Hair Removal market is expected to report a steady rise at of 9% from 2017 to 2022 (Transparency Market Research).
84% of women in the U.S. wax (JAMA Dermatology).
In 2015 the beauty industry generated $56.2 billion in the United States (Statista).
Threats
Other nearby competition and growing national chains.
Consumer preferring another type of hair removal, such as shaving or laser hair removal.
Potential for consumers to do services at their own home.
How Much is a Lunchbox Wax Franchise?
LunchBox Franchise cost ranges from $340,850 to $469,800 according to the 2019 FDD
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
| Low | High | |||
| Franchise Fee | $45,000 | $45,000 | Upon Signing | Franchisor |
| Food, Lodging & Travel (2 to 4 people while training) | 2,000 | 4,000 | During training | Hotels, retaurants, and arilines |
| Lease Deposit & 3 Months’ Rent | 11,500 | 20,000 | Monthly (with security deposit paid beofre opening) | Landlord |
| Architectural Design | 4,000 | 7,000 | Before Opening | Architect |
| Project Management Fee | 10,000 | 10,000 | At time you sign lease or purchase agreement for facility | Franchisor |
| Build Out & Improvements | 120,000 | 185,000 | Before Opening | Architects, cxontractors, suppliers |
| Signage | 8,000 | 12,000 | Before Opening | Suppliers |
| Furniture, Fixtures & Equipment | 60,000 | 70,000 | Before Opening | Suppliers |
| Computer/POS System | 3,500 | 5,000 | Before Opening | Suppliers |
| Technology Fee (first 2 monthly installments prior to opening) | 1,300 | 1,300 | Before Opening | Franchisor |
| Office Equipment | 500 | 1,000 | Before Opening | Suppliers |
| Initial Supply of Inventory The value of the total finished and unfinished goods and materials the business holds for future sale. | 3,000 | 4,000 | Before Opening | Suppliers |
| Initial Operating Supplies | 15,000 | 17,000 | Before Opening | Suppliers |
| Grand Opening Marketing Fee | 18,000 | 25,000 | 30 days before through 90 days after opening | Affiliate It might mean: 1-An affiliate-own business: Is a type of business where the main company owns less than 50+% of the other companies. It’s… and suppliers |
| Utility Deposits, Business Licenses & Other Prepaid Expenses | 750 | 2,000 | Before Opening | Utility companies and government agencies |
| Professional Fees Professional fees are revenues or expenses of services from people specially trained in specific fields of arts and sciences. eg as doctors, architects, lawyers,… | 2,500 | 5,000 | Before Opening | Lawyers & accountants |
| Insurance | 800 | 1,500 | Before Opening | Insurance companies |
| Additional Funds AFN = Projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings Known as AFN or additional funds needed… (3 Months) | 35,000 | 55,000 | As incurred | Suppliers and employees |
| Total | $340,850 | $469,800 | ||
How Much does a Lunchbox Franchise make?
| After 1 year of operation | Top 1/3 | Bottom 1/3 |
|---|---|---|
| Average | $366,811 | $243,311 |
| High | $380,840 | $258,264 |
| Low | $348,388 | $232,003 |
| Median | $371,204 | $239,667 |
Disclosure from FDD: “The following financial performance representation includes financial information about certain franchised LunchboxWax Salons that had been open at least 1 full year as of December 31, 2018. Our current franchise model contemplates a facility with 5 waxing suites. However, on rare occasion we may allow for a facility with 4 waxing suites. Historically we allowed facilities with 3 waxing suites but we do not anticipate granting any more franchises for facilities with 3 waxing suites.
Therefore, the financial performance data only includes data for facilities that have 5 waxing suites. The data for facilities with 3 and 4 waxing suites was excluded. Similarly, we did not include any data for our 3 affiliate-owned LunchboxWax Salons. In terms of affiliate- owned LunchboxWax Salons, 3 were open 1 year as of 12/31/18, 2 were open 2 years as of 12/31/18, 1 was open 3 years as of 12/31/18 and 0 were open 4 years as of 12/31/18.
The following table lists the number and allocation of franchised outlets as of December 31, 2018:”
Historical Gross Sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. Data for Franchised Outlets
Disclosure from FDD: “The following table presents information regarding the average, high, low and median Gross Sales for the top 1/3 and bottom 1/3 of salons for each of the subsets listed in the table above for 5 suite salons. “Gross Sales” means all gross sums that you collect from all goods and services that you sell (including coupons, gift certificates and similar items), plus all other sums that you collect from the operation of your business, including the proceeds of any business interruption insurance.
“Gross Sales” does not include sales or use taxes, tips paid to your employees or amounts received and turned over to us or another administrator for the sale of gift cards, gift certificates and the like.”
Historical Gross Sales Data for Franchised Outlets
Projected Gross Sales, Expenses and Earnings Total earnings received by a business based on the U.S. Income Tax Return. The financial numbers of these earnings depend on the type of…
Disclosure from FDD: “The table on the following page presents information regarding the projected Gross Sales, expenses and earnings for the top 1/3 and bottom 1/3 of salons for 5-suite salons. Since future salons will be restricted to 5 or more suites, we have excluded the sales and expense data for any current salons with fewer than 5 suites.
“Total Revenues” has the same meaning as “Gross Sales” (as defined in the financial performance representation in Part A above). The expenses and earnings have been determined based on profit and loss reports submitted by franchisees.”
