How to Finance a European Wax Center Franchise: Costs and SBA
By Chris Cornella
A European Wax Center franchise loan pays for a compact, service-focused retail business: a leased storefront of roughly 1,200 to 1,600 square feet built out with private wax suites, a front desk and retail shelving, plus the franchise fee, opening inventory, training and enough working capital to carry payroll for licensed wax specialists while the guest base grows. It is a smaller build than a restaurant or a gym, but it is still a real construction project, and lenders treat it that way.
This article explains how European Wax Center works as a franchise, what the franchisor’s disclosure document and the company’s public filings say about costs and fees, what the brand expects of owners, how SBA and conventional financing may fit, and what lenders review before approving a European Wax Center deal.
This is general information only. US Professional Funding is not affiliated with, sponsored by or endorsed by European Wax Center; the name is used only to describe the business. Figures come from the franchisor’s disclosure document and the company’s own public filings and can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
European Wax Center Franchise Loan at a Glance
- Initial franchise fee: $45,000 for new franchisees and $36,000 for existing franchisees, according to the European Wax Center Franchise Disclosure Document issued April 28, 2022, the most recent edition we were able to review.
- Estimated initial investment: $349,600 to $553,950 per center in the 2022 disclosure document; the company’s annual report for the fiscal year ended January 6, 2024 describes a typical new-center investment of approximately $397,000 to $555,000.
- Multi-unit development agreement: $72,000 to $207,000 to enter the agreement, all paid to the franchisor or its affiliates, according to the 2022 disclosure document.
- Royalty: 6.0% of sales, net of retail product sales, as defined in the franchise agreement, according to the company’s fiscal 2025 results.
- Marketing fee: 3% of service sales, according to the company’s annual report.
- Center format: approximately 1,200 to 1,600 square feet with six to seven wax suites.
- System size: 1,047 centers in 44 states as of January 3, 2026, according to the company.
- Franchise term: generally ten years, with a ten-year renewal option, according to the company’s annual report.
- SBA Franchise Directory: listed as European Wax Center under code S0585, with no additional directory note.
What Is European Wax Center?
European Wax Center is a franchised chain of waxing centers offering facial and body waxing and related skin care services, along with branded retail products. The 2022 disclosure document describes the franchise as a retail business offering high-end facial and body waxing and related skin care services. The company is based in Plano, Texas.
The system is almost entirely franchised. The company reported 1,047 centers in 44 states at the end of its 2025 fiscal year, and its filings describe its centers as 99% owned and operated by franchisees. The franchisor itself operates only a handful of centers.
How a center works. Guests book appointments for services performed by licensed wax specialists in private suites. Every specialist must complete the brand’s proprietary training program, and services use the brand’s own Comfort Wax formulation. The company’s annual report says franchisees employed nearly 9,000 licensed wax specialists across the system. Guests can also buy a Wax Pass, which the company describes as offering preferential pricing through pre-paid or unlimited passes, and centers sell branded retail products for at-home care.
Why lenders view European Wax Center the way they do. Lenders see a large, established system with standardized centers, repeat-visit services and a brand that has been reviewed for SBA eligibility. They also see a service business whose capacity is limited by the number of licensed specialists it can hire and keep, a leasehold build-out with modest resale value, and a system where openings and closings both occur. In fiscal 2025, the company reported that franchisees opened 11 centers and closed 31. That makes site selection, the strength of the local operator and the terms of the lease central to any European Wax Center franchise loan.
European Wax Center Franchise Costs
Most of a European Wax Center investment goes into the build-out of a leased retail space and the costs of opening it. The 2022 disclosure document estimates a total of $349,600 to $553,950 per center. The company’s later annual report describes a typical new-center investment of approximately $397,000 to $555,000, which suggests costs have moved up since 2022, so expect the current Item 7 table to differ.
Initial franchise fee
According to the 2022 disclosure document, the initial franchise fee was $45,000 for new franchisees and $36,000 for existing franchisees. The same document estimates that $62,000 to $65,350 of a new franchisee’s total investment is paid to the franchisor or its affiliates, or $53,000 to $56,350 for an existing franchisee. Those amounts include the franchise fee and other items bought from the franchisor, such as opening products.
Lease and build-out
Centers typically occupy inline or end-cap space in neighborhood shopping centers. The build-out covers the private wax suites, plumbing for sinks, lighting, flooring, the front desk, the retail display area and a back-of-house area. Construction costs swing with the market, the condition of the space and the landlord’s tenant improvement allowance, so a lease with a meaningful allowance can noticeably reduce the amount you need to borrow.
Furniture, fixtures and equipment
Each suite needs a treatment bed, wax warmers, a sink or hand-washing station, storage, lighting and the brand’s specified fixtures. The front of the center needs a reception desk, point-of-sale and booking technology, signage and retail fixtures.
Opening inventory, training and working capital
Owners buy an opening supply of Comfort Wax, service supplies and branded retail products. Before opening, the center also has to recruit and train licensed wax specialists, who are typically paid before the appointment book fills. The additional funds line in Item 7 covers these early operating costs for a stated period.
Total investment
The cost categories that make up a European Wax Center budget typically include:
- Initial franchise fee
- Lease deposits and pre-opening rent
- Leasehold improvements and construction
- Architectural, design and permit costs
- Furniture, fixtures and wax suite equipment
- Signage
- Computer, point-of-sale and booking technology
- Opening inventory of wax, supplies and retail products
- Pre-opening training, recruiting and grand opening marketing
- Insurance, licenses and professional fees
- Additional funds for the initial operating period
Use the Item 7 table in the current disclosure document for the dollar estimate on each line and the length of the additional funds period, and keep your own budget consistent with the total range it gives.
Ongoing Fees and How They Affect Your Loan
European Wax Center’s ongoing fees are charged as a percentage of sales. According to the company’s fiscal 2025 results, the royalty is 6.0% of franchised center sales, net of retail product sales, as defined in the franchise agreement. The company’s annual report describes a 3% marketing fee on service sales, and its filings also mention a fixed monthly fee for search engine optimization and marketing services, along with technology fees and training charges.
Required purchases. The company’s annual report states that franchisees must purchase products related to the operation of their centers, including the wax used in every service and branded retail products. Those purchases are a significant part of a center’s cost of goods and should appear clearly in projections.
How lenders factor the fees in. A lender sizes the loan on the cash a center keeps after royalties, marketing fees, technology fees, product costs, specialist payroll, rent and other expenses. Because royalty and marketing fees are taken from sales before any operating cost, projections should show those fees line by line and test what happens if service sales come in below plan. Debt service is then measured against what remains.
Remodels and refreshes. Like most retail brands, European Wax Center can require updates to centers over time, especially at renewal or transfer. Ask what the current disclosure document says about remodel obligations, because a required refresh partway through the loan term affects cash flow. Our article on franchise remodel financing explains how owners pay for required updates.
Franchisor Requirements for New Owners
The disclosure document and the franchisor’s approval process set the financial and experience requirements for new owners, and the current figures should be confirmed directly with the franchisor. The company’s filings show a system built heavily around multi-unit ownership: as of January 6, 2024, it reported 201 franchisees, 133 of whom operated more than one center.
What the franchisor looks for. Because the brand depends on licensed specialists, guest service and a retail sales culture, it values candidates who can recruit, lead and retain a service team, manage a schedule-driven business and sell memberships and retail products. Business management, retail or multi-unit experience can strengthen an application.
Support structure. The company describes a team of Franchise Business Consultants who work with franchisees across regional territories, and its filings describe area representatives who sell franchise licenses and support franchisees within a region.
The approval process. Expect an application, financial review, review of the disclosure document, meetings with the franchisor’s development team and, once approved, a franchise agreement or multi-unit development agreement, site selection with franchisor approval, lease negotiation, construction and training.
Ways to Own a European Wax Center
Opening a new center. A new center requires a franchise agreement, an approved site, a lease and a full build-out. Financing covers the franchise fee, construction, equipment, opening inventory and working capital. See our page on franchise start-up financing for how new units are typically funded.
Buying an existing center. Established centers change hands as owners retire, sell part of a portfolio or exit the system. A resale comes with trained specialists, a guest base, Wax Pass holders and a performance history a lender can review, and the franchisor must approve the buyer and the transfer. Lenders look at whether prepaid Wax Pass obligations transfer with the business, since those services must still be delivered. Our article on how to value a franchise explains how resale prices are set.
Multi-unit development. Many owners commit to several centers under a multi-unit development agreement. The 2022 disclosure document puts the investment needed to enter such an agreement at $72,000 to $207,000, all paid to the franchisor or its affiliates, before the cost of building each center.
Financing Options for a European Wax Center Franchise
SBA 7(a) loans. The SBA 7(a) loan program is often a good fit for a European Wax Center because it can finance leasehold improvements, furniture and equipment, the franchise fee, opening inventory and working capital in one loan, and for resales, goodwill. The SBA 7(a) program maximum is currently $5 million, and program rules can change. A single center typically falls well below that limit, while a multi-center acquisition may approach it.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. Because European Wax Center centers are typically leased retail spaces, 504 financing rarely fits a single center, though it may become relevant if an owner buys a building that houses a center.
Conventional term loans. Experienced multi-unit operators with strong credit and liquidity may qualify for conventional business loans, which can offer flexibility on structure but often ask for more equity or collateral than SBA loans.
Equipment financing. Treatment beds, wax warmers, suite fixtures, point-of-sale systems and retail displays can be financed or leased separately, which can preserve cash for build-out and working capital. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. A new center pays specialists and rent before the appointment book is full, and the company notes that seasonal changes may moderately affect demand for waxing services. A working capital reserve or line of credit helps a center stay staffed through slower periods and fund marketing. See our options for franchise working capital.
Seller financing on resales. A seller may agree to carry part of the purchase price of an existing center in a note. A seller note is typically subordinate to the primary loan, and SBA program rules may limit how it is structured, so raise it with your lender before signing a purchase agreement.
Franchisor financing. The company’s annual report states that it does not generally provide direct financing to franchisees, and that franchisees’ ability to borrow depends on their own relationships with financial institutions. Check Item 10 of the current disclosure document for any programs offered.
SBA Loans for European Wax Center Franchisees
SBA loans are made by participating lenders, with the SBA backing part of the loan. For a franchise, the lender must confirm that the franchise relationship leaves the borrower in control of the business, and the SBA Franchise Directory streamlines that review.
The directory listing. European Wax Center appears on the SBA Franchise Directory under code S0585, and the listing carries no additional note or condition. In plain English, the brand’s franchise agreement has been reviewed and does not, by itself, stand in the way of an SBA loan. The borrower, the project and the lease still have to meet SBA rules and the lender’s credit standards, and a listing does not approve any borrower.
Lease and term considerations. Because a center is a leasehold business, lenders want the lease term, including renewal options, to support the loan, and may ask for a collateral assignment of the lease. They also compare the loan term with the remaining franchise term; the company’s annual report says agreements generally run ten years with a ten-year renewal option.
SBA application tips. Assemble the current disclosure document, the franchise agreement or development agreement, the signed or proposed lease, construction bids, a sources and uses statement, personal financial statements, tax returns, a résumé highlighting management and retail experience, and a month-by-month projection through the ramp-up period. Our article on using the FDD in franchise financing explains which sections lenders read most closely.
How Lenders Evaluate a European Wax Center Deal
Personal credit and financial history. Lenders review each principal’s credit history, tax returns and existing obligations, and owners with significant stakes are typically asked for personal guarantees.
Net worth and liquidity. Beyond the equity injection, lenders want reserves that remain after closing. For multi-unit commitments, they look at whether the borrower can fund later centers on schedule.
Management experience. Lenders give weight to experience managing hourly or licensed service staff, retail sales and multi-location operations, and to a plan for who will run each center day to day.
Business plan and projections. Projections should start with the number of suites, specialist staffing and appointment capacity, then layer in a realistic ramp of guests, Wax Pass sales and retail sales. Show royalties, marketing fees, product purchases, specialist payroll and rent separately so the lender can see what is left for debt service.
The disclosure document and franchise agreement. Lenders read the fee sections, development schedule, term and renewal, transfer conditions, required purchases and any remodel obligations.
Site and lease. Co-tenancy, visibility, parking, neighborhood demographics and the tenant improvement allowance all matter. A lease that requires a personal guarantee is also a factor in the overall credit picture.
Historical financials for resales. For an existing center, lenders review several years of statements and point-of-sale data, specialist retention, Wax Pass liabilities and how the center’s sales compare with its own history. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Specialists, Suites and Center Capacity
For a European Wax Center, capacity is set less by square footage than by people. A center with six or seven suites can only serve as many guests as it has licensed specialists on the schedule. That makes recruiting, training and retention the most important operating factors behind a loan.
Licensing. Waxing generally requires a state cosmetology or esthetics license, and rules vary by state. Owners should confirm local requirements and build licensing timelines into the opening schedule.
Staffing in the plan. Lenders reviewing a start-up want to see how many specialists will be hired before opening, how they will be paid and how the schedule will expand as demand grows. For a resale, they look at how long key specialists have stayed and whether a change of ownership could prompt departures.
Prepaid services. Wax Pass sales bring cash in early, but each prepaid service is a promise to deliver a future appointment. Lenders treat outstanding pre-paid services as an obligation, especially in a resale.
Multi-Unit Growth and Development Agreements
European Wax Center is built around multi-unit owners, and many franchisees open several centers in a market under a development agreement. Each center requires its own site, lease, build-out, staff and ramp-up, and a development schedule commits the owner to opening dates.
Financing usually happens one center at a time. Lenders look at the performance of open centers, combined cash flow, remaining liquidity and the management structure that will support the next center. SBA program limits apply across all of a borrower’s SBA loans, so larger portfolios may combine SBA and conventional financing. Our article on financing an area development agreement and our page on franchise expansion financing cover growth funding in more detail.
Real-World Scenarios
A first-time owner opening one center. A former retail district manager signs a franchise agreement and secures an end-cap space in a busy shopping center. An SBA 7(a) loan funds the build-out, suite equipment, franchise fee, opening inventory and a working capital reserve sized to carry specialist payroll through ramp-up.
An existing owner adding a third center. An owner with two open centers adds a third under a development agreement. The lender reviews both centers’ statements and the manager who will oversee the new location, and finances the suite equipment separately to preserve cash.
A buyer acquiring a center from a retiring owner. A buyer purchases an established center. The franchisor approves the transfer, the lender reviews the center’s history, specialist tenure and outstanding Wax Pass balances, and the seller carries a small subordinate note.
Common Mistakes to Avoid
- Building a budget from an older disclosure document instead of the current Item 7 table
- Underestimating how long it takes to recruit and license enough specialists
- Leaving out royalty, marketing and product costs when estimating debt service
- Signing a lease before the franchisor approves the site and the financing is in place
- Overlooking prepaid service obligations when buying an existing center
- Committing to an aggressive development schedule without a funding plan for each center
For more, read our breakdown of franchise loan mistakes that cost owners the most.
Next Steps to Finance Your European Wax Center Franchise
Step 1: Confirm your fit and market. Talk with the franchisor about available markets, single-center or multi-unit options and current financial requirements.
Step 2: Review the current disclosure document. Read it with a franchise attorney, focusing on Items 5, 6, 7, 8, 10, 11, 12, 17 and 19.
Step 3: Build a realistic budget. Combine the Item 7 estimate, landlord terms and contractor bids, then add a cushion for construction and ramp-up.
Step 4: Talk with a financing specialist early. Discuss which structure fits your plan before you sign a lease or development schedule.
Step 5: Assemble your documents. Gather personal financial statements, tax returns, a résumé, the disclosure document, the lease, bids and projections.
Step 6: Coordinate approvals. Keep the franchise agreement, site approval, lease and loan approval on aligned timelines.
Step 7: Build, hire and open. Complete construction, recruit and train specialists, and open with working capital in place.
European Wax Center Franchise Loan FAQs
How much does a European Wax Center franchise cost?
The 2022 disclosure document estimated $349,600 to $553,950 per center, and the company’s later annual report described a typical new-center investment of approximately $397,000 to $555,000. Review the current Item 7 table for today’s estimate.
What is the European Wax Center franchise fee?
According to the 2022 disclosure document, the fee was $45,000 for new franchisees and $36,000 for existing franchisees. Confirm the current amount in Item 5.
What royalty and marketing fees does European Wax Center charge?
The company reports a royalty of 6.0% of sales, net of retail product sales, and its annual report describes a 3% marketing fee on service sales. Technology and other fees appear in Item 6.
How much net worth and liquid capital do I need?
The franchisor sets its current financial requirements in its application process and disclosure document, so confirm them directly. Lenders separately expect an equity injection and reserves after closing.
Can I get an SBA loan for a European Wax Center?
The brand is listed on the SBA Franchise Directory under code S0585 with no additional note. Eligibility still depends on the borrower, the project, program rules and lender approval.
Does European Wax Center offer financing?
The company’s annual report states that it does not generally provide direct financing to franchisees. Check Item 10 of the current disclosure document for any programs.
Can I finance the wax suite equipment separately?
Yes. Suite equipment, fixtures and technology can be financed or leased on their own, or included in an SBA 7(a) loan with the build-out.
Can I buy an existing European Wax Center?
Yes, when one is available. The franchisor must approve the buyer and the transfer, and lenders review the center’s financial history, staffing and prepaid service balances.
Can a first-time business owner get a European Wax Center franchise loan?
First-time owners can qualify if they meet the franchisor’s requirements and show relevant management experience, a solid plan and enough working capital. Many system owners operate several centers, so the franchisor may discuss growth plans early.
How long is the European Wax Center franchise agreement?
The company’s annual report states that the initial term is generally ten years, with a ten-year renewal option. Confirm the details in Item 17.
How large is a European Wax Center?
The company describes its centers as approximately 1,200 to 1,600 square feet with six to seven wax suites.
Does European Wax Center publish financial performance information?
Check Item 19 of the current disclosure document to see whether it includes a financial performance representation, and review it with your advisors. Results vary by center and are not a promise of future performance.
Final Thoughts
A European Wax Center franchise loan finances a standardized, service-driven center inside a leased retail space. The investment is moderate, but the outcome depends on site selection, lease terms, the ability to hire and keep licensed specialists, and projections that account for royalty, marketing and product costs. Starting from the current disclosure document and a conservative ramp-up gives your request the best chance of approval.
US Professional Funding helps franchise owners finance new units, acquisitions, equipment and expansion across many brands. Learn more about our franchise financing programs and how we can structure a loan around your center.
