About Sugar Sugar Franchise
Sugar Sugar is a beauty services franchise specializing in sugaring, a natural hair removal method that uses a paste made from sugar, water, and lemon juice.
The brand offers a gentler alternative to traditional waxing, appealing to clients who prefer organic, skin friendly treatments.
Operating under Microspa Concepts, LLC, Sugar Sugar has been franchising since 2018 and has established itself in the growing natural beauty services market.
Sugar Sugar Franchise Cost & Fees
Minimum Investment
$119K
Average Investment
$194K
Maximum Investment
$270K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,900 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Greater of (i) 1% of Gross Revenues or (ii) $300 per month (Brand and System Development Fund Fee); Greater of (i) 4% of Gross Revenues or (ii) $1750 per month (Local Marketing Commitment) | National brand fund |
| Total Investment Range | $119,100 – $269,880 | Includes build-out, inventory, working capital |
The investment range of $119K–$270K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Revenues) and marketing fee (Greater of (i) 1% of Gross Revenues or (ii) $300 per month (Brand and System Development Fund Fee); Greater of (i) 4% of Gross Revenues or (ii) $1750 per month (Local Marketing Commitment)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,900 | $35,900 |
| Initial Training Fee | $10,000 | $10,000 |
| Startup Package | $10,700 | $11,900 |
| Food, Lodging & Travel (1 to 2 people while training) | $50 | $1,500 |
| Lease Deposit & 3 Months’ Rent | $5,000 | $19,000 |
| Build Out & Improvements | $18,000 | $102,250 |
| Signage | $9,250 | $14,750 |
| Decorating, Furniture & Furnishings | $2,100 | $2,500 |
| Computer / Printer / Peripherals | $500 | $1,800 |
| Service Equipment | $1,500 | $2,500 |
| Utility Deposits, Business Licenses & Other Prepaid Expenses | $400 | $1,800 |
| Professional Fees | $500 | $3,000 |
| Insurance (3 months’ premium) | $200 | $480 |
| Grand Opening Marketing | $10,000 | $10,000 |
| Additional Funds (3 month period after opening) | $15,000 | $52,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the current initial franchise fee (Franchise Agreement); ADA: 25% of sum of development fee + initial franchise fee for 1st unit |
| Technology Fee | Varies (currently $314 per month) |
| Audit Fee | Actual cost of audit (including travel and lodging expenses for audit team) |
| Training Fee | Up to $300 per person per day |
| Marketing Materials and Inventory | Varies depending on item purchased |
| Fines | Up to $100 per incident |
| Late Fee | Lesser of 18% of amount past due or highest rate allowed by applicable law |
| Management Fee | Commercially reasonable rate |
| Indemnification | Will vary with circumstances |
| New Product or Supplier Testing | Cost of testing |
| Insurance | Actual cost of premiums, plus our costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training program includes 3 days of franchise management training and 5 days of sugaring training. Total 8 days. |
| Classroom Training | 19 hours |
| On-the-Job Training | 45 hours |
| Training Location | Scottsdale, Arizona (for franchise management training) and Your Spa (for sugaring training) |
| Additional Training | We may require that your Managing Owner, managers and sugaring specialists attend system-wide refresher or additional training courses. New Managing Owners/managers/sugaring specialists must attend and successfully complete initial training. Remedial training may be required for operational deficiencies. Additional training may be requested by franchisee. Training fees of up to $300 per person per day apply for post-opening initial training, retake training, remedial training, and requested additional training. Travel, meals, and lodging expenses are the franchisee's responsibility. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Typically a 1.5 mile radius around your Spa. Can be limited to a one (1) block radius in major metropolitan downtown areas or extend to 10 miles or more in highly rural areas. |
| Description | Your Protected Territory will typically be comprised of a 1.5 mile radius around your Spa. If your Spa is located in a major metropolitan downtown area or similarly situated/populated central business district (a “Central Business District”), your Protected Territory may be limited to a one (1) block radius around the Premises or the larger building in which the Premises is located or it may extend to 10 miles or more in highly rural areas. We will determine and designate your Protected Territory as we deem appropriate in our discretion. The size of your Protected Territory will likely vary from the territory granted to other franchisees based on the location and demographics surrounding your Spa. The boundaries may be described in terms of zip codes, streets, landmarks, county lines, or delineated on a map as Attachment B to your Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Conditions | You must: not be in default; give us timely notice (180-270 days before expiration); sign our then-current form of franchise agreement and related documents; sign a general release; remodel or upgrade your Spa to comply with current standards; and have the right under your lease to maintain possession of your premises for the renewal term. You may be required to sign a contract with materially different terms and conditions than the original contract. |
| Transfer Fee | 50% of the current initial franchise fee (Franchise Agreement); ADA: 25% of sum of development fee + initial franchise fee for 1st unit |
| Transfer Conditions | Transferee must meet qualifications, successfully complete training (or commit to do so), obtain all required licenses and permits, and sign a new franchise agreement for the remainder of the term (or at our option, take assignment of existing franchise agreement). Transferor must be in compliance with Franchise Agreement, assign lease, remodel Spa to current standards (or get commitment from transferee), pay transfer fee, and sign a general release and subordination agreement. Franchisor has a right of first refusal. |
| Termination for Cause | Franchisor can terminate if you default. Curable defaults: 10 days for monetary default, 30 days for other defaults. Non-curable defaults (5 days notice, no cure period): failure to complete training, failure to find approved site or open in timely manner, insolvency/bankruptcy, abandonment of franchise, failure to maintain required license/permit, conviction of certain crimes, material law non-compliance, acts adversely affecting reputation, health/safety hazards, material misrepresentations, 2nd underreporting by 3% or more, unauthorized transfers, unauthorized use of intellectual property, breach of brand protection covenants, breach of Franchise Owner Agreement by owner/spouse, lease termination due to default, or termination of any other agreement with franchisor/affiliate due to default (other than ADA). |
| Non-Compete Period | During term: No involvement in competing business. After termination/expiration: 2 years. |
| Non-Compete Details | During the term of the franchise, you and your Owners agree not to unfairly compete by owning, operating, or having interest in a Competitive Business (with exceptions), diverting business, or inducing employees/customers to leave. After termination or expiration, for 2 years, you and your Owners agree not to be involved in a competing business within 20 miles of your Spa or any other Sugar Sugar spa, comply with non-solicitation and non-disclosure covenants, and cease use of intellectual property. The ADA does not impose any noncompetitive covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires you to designate an owner (the “Managing Owner”) who will be primarily responsible for the daily on-premises management and supervision of your Spa. The Managing Owner must own a controlling interest in the franchisee entity and dedicate full-time efforts to the business, unless a manager (approved by the franchisor and having completed initial training) is hired to assist. The Managing Owner must supervise the manager. All employees attending training must sign a Brand Protection Agreement. All owners and their spouses must sign a Franchise Owner Agreement. |
| Required Suppliers | We require that you purchase or lease certain “source restricted” goods and services for the development and ongoing operation of your Business. By “source restricted,” we mean that the good or service must meet our specifications and/or must be purchased from an approved or designated supplier (in some cases, an exclusive designated supplier, which may be us or an affiliate). Current source restricted items include real estate services (site selection, lease negotiation, architectural and construction), the lease for your facility, fixtures, furnishings and décor, signage, computer equipment and POS system, in-studio entertainment and marketing technology, operating equipment, uniforms and operating supplies, inventory, marketing materials and marketing services, and insurance policies. Nearly 85% of total purchases and leases will be source restricted. |
| Supply Restrictions | You must use our designated supplier for site selection services. You must utilize the POS system and software that we specify. You must purchase most of your operating supplies exclusively from us or our affiliate. You must purchase employee uniforms exclusively from us or our affiliate. All of your inventory must be purchased only from us or our affiliate. You must purchase all branded marketing materials only from us or other suppliers that we designate or approve. We may also require you to utilize our designated marketing company and social media marketing company. |
| Franchisor Revenue from Suppliers | We and our affiliates are currently the suppliers for all of the items included in the startup package described in Item 5. We generate revenues from these purchases. We also collect the monthly licensing fee for your point-of-sale system but we remit these funds to the licensor. We may designate ourselves or an affiliate as an approved or designated supplier for other items in the future. No persons affiliated with us are currently an approved (or the only approved) supplier except for Skin From Scratch, LLC and Cubed Sugar, LLC (our officers each own an interest in our affiliated suppliers). Neither we nor our affiliates have received any revenues from franchisee purchases from us or other designated or approved suppliers during the 2022 fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any of your notes, leases or obligations. |
Sugar Sugar Franchise Earnings — Item 19
Average Revenue
$490K
Median Revenue
$495K
Revenue Range
$402K – $567K
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
Sugar Sugar Litigation & Risk Flags
Clean Litigation RecordSugar Sugar has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sugar Sugar System Growth
Total Units
2
Franchised
0
Company-Owned
2
Sugar Sugar currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 2 |
| 2021 | 0 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$10K
Net Income
$-22,557
Total Assets
$118K
Audited by REESE CPA LLC for year ending December 31st.
Sugar Sugar Franchise — FAQ
The total investment to open a Sugar Sugar franchise ranges from $119,100 to $269,880, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,900. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sugar Sugar charges a royalty fee of 6% of weekly Gross Revenues of gross sales, plus a Greater of (i) 1% of Gross Revenues or (ii) $300 per month (Brand and System Development Fund Fee); Greater of (i) 4% of Gross Revenues or (ii) $1750 per month (Local Marketing Commitment) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sugar Sugar Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sugar Sugar to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sugar Sugar franchise owners report average revenue of $490K and median revenue of $495K. This is based on a sample of 2 units. Past performance does not guarantee future results.
Sugar Sugar has been franchising since 2018. The FDD shows an investment range of $119,100-$269,880, a 6% of weekly Gross Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,900 and the total investment ranges from $119,100 to $269,880 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sugar Sugar and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sugar Sugar or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com