European Wax Center: Big Fish, Small Pond, Big Reward?

In an industry where most businesses are independent, franchised competitors stand out. European Wax Center (NASDAQ: EWCZ) has successfully expanded to become the largest and fastest-growing franchisor and operator of out-of-home waxing services as measured by locations and systemwide sales, with over 850 salons. Here's why the company looks poised to thrive in the big but fragmented personal care market.

Regardless of your personal opinions on the aesthetics of body hair, half of the population faces a ton of social pressure to have less of it. Body hair removal is one of the most popular sectors of the personal care industry (which also includes services such as hair treatments, manicures, tanning, and laser), with high margins and low overheads, and different franchise providers tout the service as resistant to recessions.

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