0000950170-23-006957 | 10-K | XBRL Viewer

REVENUE

Selling, general and administrative

207,351

178,678

103,407

OPERATING EXPENSES

Cost of revenue

59,227

46,841

35,508

58,951

61,617

38,997

Advertising

28,659

24,990

11,495

Depreciation and amortization

20,231

20,333

19,582

Loss on disposal of assets and non-cancellable contracts

335

1,044

Total operating expenses

167,075

154,116

106,626

Income (loss) from operations

40,276

24,562

(3,219)

Interest expense

23,626

20,286

18,276

Other expense

56,228

195

Income (loss) before income taxes

(39,578)

4,081

(21,495)

Income tax expense (benefit)

(53,191)

114

NET INCOME (LOSS)

13,613

3,967

(21,495)

Less: net income (loss) attributable to EWC Ventures, LLC prior to the Reorganization Transactions

10,327

(21,495)

Less: net income (loss) attributable to noncontrolling interests

6,336

(2,945)

NET INCOME (LOSS) ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC.

$ 7,277

$ (3,415)

$ 0

SubsidiariesMember | Class A Common Stock [Member]

Earnings Per Share [Abstract]

Earnings Per Share, Basic

^[1]

$ 0.19

$ (0.11)

$ 0

Earnings Per Share, Diluted

^[1]

$ 0.19

$ (0.11)

$ 0

Earnings Per Share, Basic and Diluted, Others Disclosure [Abstract]

Weighted Average Number of Shares Outstanding, Basic

40,010,456

32,234,507

Weighted Average Number of Shares Outstanding, Diluted

40,151,051

32,234,507

SubsidiariesMember | Product

REVENUE

SubsidiariesMember | Royalty

$ 117,745

$ 99,740

$ 56,977

REVENUE

SubsidiariesMember | Marketing

49,733

43,648

25,674

REVENUE

SubsidiariesMember | Other Revenue

28,041

24,610

13,465

REVENUE

$ 11,832

$ 10,680

$ 7,291

[1]

Basic and diluted loss per share of Class A common stock for the year ended December 25, 2021 is applicable only for the period from August 4, 2021 through December 25, 2021. See Note 20 for the calculation of the numbers of shares used in computation of net income (loss) per share of Class A common stock and the basis for computation of net income (loss) per share.

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Related party consulting fees		$ 0
Subsidiaries [Member]
Related party consulting fees	$ 0		$ 117	$ 200

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Net income (loss)	$ 13,613	$ 3,967	$ (21,495)
SubsidiariesMember
Net income (loss)	13,613	3,967	(21,495)
Items included in other comprehensive income:
Unrealized gain on cash flow hedge		286	208
TOTAL COMPREHENSIVE INCOME (LOSS)	13,613	4,253	(21,287)
Less: total comprehensive income (loss) attributable to EWC Ventures, LLC prior to the Reorganization Transactions		10,409	$ (21,287)
Less: total comprehensive income (loss) attributable to non-controlling interests	6,336	(2,848)
SubsidiariesMember \| Parent [Member]
Items included in other comprehensive income:
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC.	$ 7,277	$ (3,308)

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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European Wax Center, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Cash flows from operating activities:
Net income (loss)	$ 13,613	$ 3,967	$ (21,495)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	20,231	20,333	19,582
Amortization of deferred financing costs	3,852	1,044	1,284
Gain on interest rate cap	(196)	0	0
Loss on debt extinguishment	1,957	6,313	0
Loss on noncancellable contracts	0	0	1,085
Provision for inventory obsolescence	(66)	317	6,656
Provision for bad debts	76	616	0
Loss (gain) on disposal of property and equipment	7	335	(41)
Deferred income taxes	(53,714)	0	0
Remeasurement of tax receivable agreement liability	56,228	195	0
Equity compensation	9,033	11,135	2,052
Changes in assets and liabilities:
Accounts receivable	(802)	(2,185)	1,721
Inventory	(3,528)	(9,460)	5,101
Prepaid expenses and other assets	3,186	(1,916)	(2,124)
Accounts payable and accrued liabilities	(5,694)	8,707	(10,499)
Deferred revenue	1,194	912	(666)
Other long-term liabilities	(1,022)	1,033	(1,259)
Net cash provided by operating activities	44,355	41,346	1,397
Cash flows from investing activities:
Purchases of property and equipment	(245)	(559)	(2,158)
Reacquisition of area representative rights	0	(7,644)	(34,685)
Net cash used in investing activities	(245)	(8,203)	(36,843)
Cash flows from financing activities:
Proceeds on line of credit	0	0	27,000
Payments on line of credit	0	(30,000)	0
Proceeds on long-term debt	384,328	179,370	15,000
Principal payments on long-term debt	(182,000)	(240,553)	(2,397)
Deferred loan costs	(12,419)	(1,294)	(763)
Payments of debt extinguishment costs	(77)	(2,446)	0
Distributions to EWC Ventures LLC members	(8,697)	(5,270)	(1,847)
Contributions from EWC Ventures LLC members	0	0	24,909
Proceeds from public offerings of Class A common stock, net of underwriting discounts and offering expenses	0	212,941	0
Payment of Class A common stock offering costs	(870)	0	0
Repurchase of Class A Units	0	(942)	0
Repurchase of Class A common stock	(10,080)	0	0
Repurchase of Class B common stock and EWC Ventures common units	0	(138,368)	0
Taxes on vested restricted stock units paid by withholding shares	(643)	0	0
Dividends to holders of Class A common stock	(122,227)	0	0
Dividend equivalents to holders of EWC Ventures units	(83,020)	0	0
Payments pursuant to tax receivable agreement	(912)	0	0
Net cash (used in) provided by financing activities	(36,617)	(26,562)	61,902
Net increase in cash, cash equivalents and restricted cash	7,493	6,581	26,456
Cash, cash equivalents and restricted cash, beginning of period	43,301	36,720	10,264
Cash, cash equivalents and restricted cash, end of period	50,794	43,301	36,720
Supplemental cash flow information:
Cash paid for interest	18,460	11,763	16,469
Cash paid for income taxes	169	10	0
Non-cash investing activities:
Property purchases included in accounts payable and accrued liabilities	37	89	33
Non-cash financing activities:
Non-cash equity distributions	0	689	122
Public offering expenses in accounts payable and accrued liabilities	$ 0	$ 870	$ 0

CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS'/MEMBERS' EQUITY - USD ($) $ in Thousands	Total	Class A Common Stock [Member]	SubsidiariesMember	SubsidiariesMember Class A Common Stock [Member]	SubsidiariesMember Class A Shares [Member]	SubsidiariesMember Previously Reported [Member]	SubsidiariesMember Mezzanine Equity [Member] Class A Founders' Units [Member]	SubsidiariesMember Mezzanine Equity [Member] Class D Units [Member]	SubsidiariesMember Mezzanine Equity [Member] Previously Reported [Member] Class A Founders' Units [Member]	SubsidiariesMember Members' Deficit [Member]	SubsidiariesMember Members' Deficit [Member] Class A Units [Member]	SubsidiariesMember Members' Deficit [Member] Class B Units [Member]	SubsidiariesMember Members' Deficit [Member] Class C Units [Member]	SubsidiariesMember Members' Deficit [Member] Class A Shares [Member]	SubsidiariesMember Members' Deficit [Member] Class B Shares [Member]	SubsidiariesMember Members' Deficit [Member] Previously Reported [Member]	SubsidiariesMember Additional Paid in Capital [Member]	SubsidiariesMember Accumulated Deficit [Member]	SubsidiariesMember Accumulated Deficit [Member] Class A Common Stock [Member]	SubsidiariesMember Accumulated Other Comprehensive Loss [Member]	SubsidiariesMember Accumulated Other Comprehensive Loss [Member] Previously Reported [Member]	SubsidiariesMember Treasury Stock [Member]	SubsidiariesMember Noncontrolling Interest [Member]
Beginning balance at Dec. 28, 2019	$ 210,038									$ (55,018)	$ 265,791						$ 0	$ 0		$ (735)			$ 0
Temporary Equity, Beginning Balance (Shares) at Dec. 28, 2019							8,309,193	0
Temporary Equity, Beginning value at Dec. 28, 2019							$ 104,280	$ 0
Beginning Balance (Shares) at Dec. 28, 2019											26,401,089	1	1,000
Beginning Balance (Shares) at Dec. 28, 2019														0	0
Equity compensation			$ 2,052							2,052
Accretion of Class A Founders Units to redemption value			15,040				$ (15,040)			15,040
Net income prior to reorganization transactions			(21,495)							(21,495)
Net income (loss)	(21,495)		(21,495)
Distributions			(1,969)							(1,969)
Unrealized gain (loss) on cash flow hedge			208																	208
Contributions from members, net of issuance costs of $91								$ 24,909
Contributions from members, net of issuance costs of $91 (Shares)								2,500,000
Temporary Equity, Ending Balance (Shares) at Dec. 26, 2020							8,309,193	2,500,000
Temporary Equity, Ending value at Dec. 26, 2020							$ 89,240	$ 24,909
Ending balance at Dec. 26, 2020	203,874									(61,390)	$ 265,791						0	0		(527)			0
Ending Balance (Shares) at Dec. 26, 2020											26,401,089	1	1,000
Ending Balance (Shares) at Dec. 26, 2020														0	0
Equity compensation						$ 667										$ 667
Repurchase of Class A Units			(942)								$ (942)
Repurchase of Class A Units (Shares)											(89,919)
Accretion of Class A Founders Units to redemption value						(112,403)			$ 112,403							(112,403)
Net income prior to reorganization transactions			10,327			10,327										10,327
Net income (loss)	3,967		3,967
Effect of reorganization transactions			226,552				$ (201,643)	$ (24,909)		$ 168,583	$ (264,849)			$ 0	$ 0		123,615			275			198,928
Effect of reorganization transactions (Shares)							(8,309,193)	(2,500,000)			(26,311,170)	(1)	(1,000)	21,540,982	36,740,956
Issuance of Class A Common Stock, net of offering costs			212,071											$ 0			212,071
Issuance of Class A Common Stock, net of offering costs (Shares)														12,530,805
Repurchase of Class B Common Stock and EWC Ventures Units from selling shareholders			(138,368)												$ 0		(138,368)
Repurchase of Class B Common Stock and EWC Ventures Units from selling shareholders (Shares)															7,070,015
Exchange of Class B Common Stock and EWC Ventures Units for Class A Common Stock														$ 0	$ 0
Exchange of Class B Common Stock and EWC Ventures Units for Class A Common Stock, Shares														2,850,000	(2,850,000)
Vesting of restricted stock units					$ 0												0
Vesting of restricted stock, shares					10,636
Forfeiture of unvested incentive units															$ 0		0
Forfeiture of unvested units, shares															(120,464)
Equity compensation subsequent to the reorganization transactions			10,468														10,468
Distributions subsequent to the reorganization transactions			(175)														(103)	(72)
Establish tax receivable agreement liability subsequent to the reorganization transactions			(58,972)														(58,972)
Allocation of equity to noncontrolling interests																	34,208			18			(34,226)
Distributions			(6,512)			(5,784)										$ (5,784)
Unrealized gain (loss) on cash flow hedge			204			$ 82														107	$ 82		97
Net loss subsequent to the reorganization transactions			(6,360)															(3,415)					(2,945)
Ending balance at Dec. 25, 2021	341,241		341,241											$ 0	$ 0		182,919	(3,487)		(45)			161,854
Ending Balance (Shares) at Dec. 25, 2021														26,700,477
Ending Balance (Shares) at Dec. 25, 2021				36,932,423										36,932,423	26,700,477
Equity compensation			9,033														9,033
Dividend paid to shareholders for Class A common stock			(86,777)	$ (122,227)															$ (122,227)				(86,777)
Net income prior to reorganization transactions			0
Net income (loss)	13,613		13,613															7,277					6,336
Repurchase of Class B Common Stock and EWC Ventures Units from selling shareholders		$ (10,080)	(10,080)																			$ (10,080)
Tax receivable liability and deferred taxes arising from secondary offering and other exchanges			(5,204)														(5,204)
Shares withheld for taxes on vested restricted stock units. shares														(32,697)
Shares withheld for taxes on vested restricted stock units			(643)														(643)
Repurchase of Class B Common Stock and EWC Ventures Units from selling shareholders (Shares)		(715,640)												(715,640)
Exchange of Class B Common Stock and EWC Ventures Units for Class A Common Stock, Shares														8,220,250	(8,220,250)
Vesting of restricted stock, shares														157,349
Forfeiture of unvested units, shares															(304,575)
Reclassification of loss on cash flow hedge to earnings			45																	45
Allocation of equity to noncontrolling interests																	21,412						(21,412)
Distributions			(8,697)																				(8,697)
Ending balance at Dec. 31, 2022	$ 130,304		$ 130,304											$ 0	$ 0		$ 207,517	$ (118,437)		$ 0		$ (10,080)	$ 51,304
Ending Balance (Shares) at Dec. 31, 2022				44,561,685										44,561,685	18,175,652

CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS'/MEMBERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Payment of Class A common stock offering costs	$ 870	$ 0	$ 0
SubsidiariesMember
Payment of Class A common stock offering costs		$ 9,930	$ 91

Nature of Business and Organization

12 Months Ended

Dec. 31, 2022

Nature of business and organization

1. Nature of business and organization

European Wax Center, Inc. was formed as a Delaware corporation on April 1, 2021. European Wax Center, Inc. and subsidiaries (“the Company”) was formed for the purpose of completing a public offering and related transactions in order to carry on the business of EWC Ventures, LLC ("EWC Ventures") and its subsidiaries. Through its subsidiaries, the Company is engaged in selling franchises of European Wax Center, distributing facial and body waxing products to franchisees which are used to perform waxing services and providing branded facial and body waxing products directly to consumers at various locations throughout the United States.

The Company operates on a fiscal calendar which, in a given year, consists of a 52 or 53 week period ending on the Saturday closest to December 31st. The fiscal year ended December 31, 2022 ("fiscal year 2022") consisted of 53 weeks and the fiscal years ended December 25, 2021 (“fiscal year 2021”) and December 26, 2020 (“fiscal year 2020”) consisted of 52 weeks.

Reorganization Transactions

On August 4, 2021, we completed an internal reorganization which is referred to as the (“Reorganization Transactions”). The Reorganization Transactions are more fully described in our prospectus dated August 4, 2021 (referred to herein as the “Prospectus”), filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2021 pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended. The following actions were taken as a result of the Reorganization Transactions:

•

EWC Ventures made a distribution of $6,512 to its members for the purpose of funding their tax obligations for periods prior to closing of our initial public offering of the Company's Class A common stock (the "IPO"). $5,823 of the distribution was paid in cash and $689 was made through settlement of receivables due from related parties.

•

The Company was appointed as the sole managing member of EWC Ventures.

•

EWC Ventures' limited liability company agreement was amended and restated to provide that, among other things, all of the its outstanding equity interests consisting of its Class A Units, Class B Unit, Class C Units and Class D Units were reclassified into EWC Ventures non-voting common units (“EWC Ventures Units”).

•

The Company’s certificate of incorporation was amended and restated under which the Company is authorized to issue up to 600,000,000 shares of Class A common stock, par value $0.00001 per share (“Class A common stock”), 60,000,000 shares of Class B common stock, par value $0.00001 per share (“Class B common stock”) and 100,000,000 shares of preferred stock, par value $0.00001 per share. The Class A common stock and Class B common stock each provide holders with one vote on all matters submitted to a vote of stockholders. The holders of Class B common stock do not have any of the economic rights provided to holders of Class A common stock.

•

The Company consummated the mergers of subsidiaries with and into affiliates of General Atlantic (the “Blocker Companies”) and the surviving entities then merged with and into us.

•

As a result of the mergers, the Company acquired existing equity interests in the Company from the owners of the Blocker Companies in exchange for 21,540,982 shares of the Company's Class A common stock and the rights to receive payments under a tax receivable agreement (the “TRA”), which is described below.

•

The continuing members of EWC Ventures (the “EWC Ventures Post-IPO Members”) subscribed for and purchased 36,740,956 shares of our Class B common stock at a purchase price of $0.00001 per share. The amount of Class B common stock purchased was equal to the number of EWC Ventures Units held by the EWC Ventures Post-IPO Members. Subject to certain restrictions EWC Ventures Post-IPO Members have the right to exchange their EWC Ventures Units, together with a corresponding number of shares of our Class B common stock for, at our option, (i) shares of the Company's Class A common stock on a one-for-one basis (the “Share Exchange”) or (ii) cash (based on the market price of the Company's Class A common stock) (the “Cash Exchange”).

•

We entered into the TRA with the EWC Ventures' pre-IPO members. See "Summary of Significant Accounting Policies" below and Note 19 -Income Taxes for more information on the TRA.

Initial Public Offering and Debt Refinancing

On August 4, 2021, the Company's registration statement on Form S-1 was declared effective by the SEC related to the IPO of its Class A common stock. In connection with the closing of the IPO on August 9, 2021, the following actions were taken:

•

The Company issued and sold 9,829,204 shares of its Class A common stock at a price of $17.00 per share for net proceeds of $155,400 after deducting underwriting discounts and commissions and prior to paying any offering expenses. In addition,

certain of the Company's stockholders (the "selling stockholders") sold an additional 2,360,796 shares of the Company's Class A common stock. The Company received no proceeds from the sale of shares by the selling stockholders. The shares sold by the Company and the selling stockholders were inclusive of 1,590,000 shares of the Company's Class A common stock sold pursuant to the underwriters' option to purchase additional shares of the Company's Class A common stock.

•

We entered into a new credit agreement consisting of a $180,000 term loan (“2026 Term Loan”) and a $40,000 revolving credit facility (“2026 Revolving Credit Facility”) (together, the “2026 Credit Agreement”). See Note 9- Long-Term Debt for more information.

•

The Company used the proceeds from its IPO to:

Contribute $104,935 to EWC Ventures in exchange for 6,637,258 EWC Venture Units. EWC Ventures used these funds, together with proceeds from the 2026 Term Loan and cash on hand to:

▪

Purchase 1,176,468 EWC Ventures Units and corresponding shares of Class B common stock for $20,000 from certain EWC Ventures Post-IPO Members and employees in satisfaction of the Class C deferred payment obligations (as described in the Prospectus)

▪

Repay all $268,732 of the outstanding term and revolving loans under our previous credit facility

▪

Pay the offering expenses of $9,930

▪

Pay $6,869 of accrued interest, fees and expenses related to the refinancing, as well as other corporate expenses; and

Purchase 3,191,946 EWC Ventures Units and corresponding shares of Class B common stock for $50,465 from certain EWC Ventures Post-IPO Members

Immediately following the Reorganization Transactions and the closing of the IPO, EWC Ventures is the predecessor of the Company for financial reporting purposes. We are a holding company, and our sole material asset is our equity interest in the EWC Ventures. As the sole managing member of EWC Ventures, the Company operates and controls all of the businesses and affairs of EWC Ventures and has a substantial financial interest in EWC Ventures. As such, we consolidate EWC Ventures on our consolidated financial statements and record a noncontrolling interest on our Consolidated Balance Sheets and Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) to reflect the entitlement of the EWC Ventures Post-IPO Members to a portion of EWC Ventures' net income (loss). The Reorganization Transactions were accounted for as a reorganization of entities under common control and the Company recognized the assets and liabilities received in the reorganization at their historical carrying amounts as reflected in the historical consolidated financial statements of EWC Ventures.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies

2. Summary of significant accounting policies

(a) Basis of presentation and consolidation

The accompanying consolidated financial statements have been presented in conformity with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC and includes the operations of the Company and EWC Ventures and its wholly owned subsidiaries. EWC Ventures is considered a variable interest entity. The Company is the primary beneficiary of EWC Ventures. As a result, the Company consolidates EWC Ventures.

EWC Ventures has been determined to be the predecessor for accounting purposes and, accordingly, the consolidated financial statements for periods prior to the Reorganization Transactions have been adjusted to combine the previously separate entities for presentation purposes. Amounts for the period from December 29, 2019 (the beginning of fiscal year 2020) through August 4, 2021 presented in the consolidated financial statements and notes to consolidated financial statements herein represent the historical operations of EWC Ventures. The amounts as of December 31, 2022 and December 25, 2021 and periods from August 4, 2021 reflect the consolidated operations of the Company.

(b) Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the financial statements include revenue recognition, inventory reserves, the expected life of franchise agreements, the useful life of reacquired rights, valuation of equity-based compensation awards, and the evaluation of the recoverability of goodwill and long-lived assets, including indefinite-lived intangible assets. Actual results could differ from those estimates.

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash in financial institutions (in excess of federally insured limits) and accounts receivable. Concentrations of credit risk with respect to accounts receivable is limited due to the Company’s large number of franchisees and their dispersion across several geographic areas.

The Company enters into franchise agreements with unrelated third parties to build and operate centers using the European Wax Center brand within defined geographical areas. The Company believes that franchising is an effective and efficient means to expand the European Wax Center brand. The franchisee is required to operate its centers in compliance with its franchise agreement that includes adherence to operating and quality control procedures established by the Company.

The Company has not provided material loans, leases or guarantees to any franchisee or any of the franchisee’s employees or vendors. However, the Company may, from time to time, without obligation, provide relief for franchisees under the franchise agreement or acquire the assets of franchisees at fair value as determined under the franchise agreement if the franchise agreement terminates, subject to applicable law. The Company has minimal financial exposure for the collection of the royalty payments as royalties are generally collected weekly in arrears for the prior week’s sales.

(d) Segment information

The Company operates and manages its business as one reportable and operating segment. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

(e) Revenue recognition

Revenues are recognized in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue From Contracts with Customers.” The Company’s revenues are comprised of product sales, royalty fees, marketing fees, and other revenues which includes technology fees, franchise fees, and service revenues from corporate-owned European Wax Center locations.

Product sales

Product sales primarily include the sale of wax, wholesale products consumed in the application of wax services and retail merchandise to franchisees, as well as retail merchandise sold in corporate-owned centers. Revenue on product sales is recognized upon transfer of control. Generally, customers take control when the risk of loss, title and insurable risks have transferred to the customer.

Royalty fees

Royalty fees are earned based on a percentage of the franchisees’ gross sales, net of retail product sales. The royalty fee is 6.0% of the franchisees’ gross sales for such period and payment is remitted to the Company on a weekly basis. Franchise agreement royalties represent sales-based royalties that are related entirely to our performance obligation under the applicable franchise agreement and are recognized in the period the franchisees’ sales occur.

Marketing fees

Marketing fees are primarily earned based on a percentage of the franchisees’ gross sales, net of retail product sales. The marketing fee is 3.0% of the franchisees’ gross sales for such period and payment is remitted to the Company on a monthly basis and recognized in the period the franchisees’ sales occur. Additionally, the Company charges a fixed monthly fee to franchisees for search engine optimization and search engine marketing services which is remitted on a monthly basis and recognized in the period when services are provided.

Other revenue

Other revenue primarily consists of service revenue and franchise fees, as well as technology fees, annual brand conference revenues, and training.

Service revenue from the Company’s corporate owned centers is recognized at the time services are provided. Amounts collected in advance of the period in which service is rendered are recorded as deferred service revenue on the Consolidated Balance Sheets.

Franchise fees consist of initial franchise fees due at contract inception. The Company’s primary performance obligations under the franchise license are granting the use of the European Wax Center trademarks, system, training, preopening assistance, and center operating assistance in exchange for franchise fees. The rights to use the Company’s intellectual property, and all other services the Company provides under the franchise agreement are highly interrelated, not distinct within the contract, and therefore accounted for under ASC 606 as a single performance obligation, which is satisfied by granting certain rights to use our intellectual property over the term of each franchise agreement.

Initial franchise fees are payable by the franchisee upon signing a new franchise agreement and are recognized as revenue on a straight-line basis commencing at contract inception through the end of the initial franchise license term. Franchise agreements generally have terms of 10 years beginning on the date the center is opened and the initial franchise fees are amortized over a period approximating the term of the agreement. These agreements also convey one extension term up to 10 years, depending on contract terms if certain conditions are met. Amounts collected in advance for franchise fees are recorded as deferred revenues on the Consolidated Balance Sheets.

Technology fees, annual brand conference revenues, and training are recognized as the related services are delivered and are not material to the overall business.

(f) Cost of revenue

Cost of revenue primarily consists of the direct costs associated with wholesale product and retail merchandise sold to franchisees, retail merchandise sold in corporate-owned centers, distribution and outbound freight costs, direct labor and materials for services provided in corporate-owned centers, and inventory obsolescence charges.

(g) Selling, general and administrative

Selling, general and administrative expenses consist of costs associated with administrative and franchisee support functions related to our existing business as well as growth and development activities. These costs primarily consist of wages, benefits and other compensation-related costs, occupancy, third-party warehousing costs, information technology, legal, accounting and other professional fees. Selling, general and administrative expenses, excluding equity- based compensation, are expensed when incurred, refer to (h) below for discussion of equity-based compensation.

(h) Equity-based Compensation

The Company recognizes compensation expense for equity awards to employees based on the estimated fair value of the equity instrument at the time of grant. For time-based awards, such expense is recognized over the requisite service period of the equity award, which is normally the vesting period. Compensation expense for performance-based awards with a market condition is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. The Company accounts for forfeitures as they occur by reversing compensation cost for unvested awards when the award is forfeited. See Note 16—Equity Based Compensation for further information.

(i) Advertising expenses

The Company expenses advertising costs as incurred. Advertising expenses include print, digital and social media advertising costs. The Company expenses the costs related to its advertising in the period the related promotional event occurs.

(j) Income Taxes

The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax bases of its assets and liabilities by applying the enacted tax rates in effect for the year in which the differences are expected to reverse. Such net tax effects on temporary differences are reflected on the Company’s Consolidated Balance Sheets as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized.

ASC 740 prescribes a two-step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax-related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense.

(k) Tax Receivable Agreement

We entered into the TRA with the EWC Ventures' pre-IPO members that provides for the payment by the Company to the EWC Ventures pre-IPO members of 85% of the benefits, if any, that the Company realizes, or is deemed to realize (calculated using certain assumptions), as a result of (i) increases in the our allocable share of certain existing tax basis of the tangible and intangible assets of the Company and adjustments to the tax basis of the tangible and intangible assets of the Company, in each case as a result of (a) the purchases of EWC Ventures Units (along with the corresponding shares of our Class B common stock) from certain of the EWC Ventures Post-IPO Members using a portion of the net proceeds from the initial public and secondary offerings or in any future offering or (b) Share Exchanges and Cash Exchanges by the EWC Ventures pre-IPO members (or their transferees or other assignees) in connection with or after the initial public offering, (ii) our utilization of certain tax attributes of the Blocker Companies (including the Blocker Companies' allocable share of certain existing tax basis of EWC Ventures' assets) and (iii) certain other tax benefits

related to entering into the TRA, including tax benefits attributable to payments under the TRA. We record liabilities for amounts payable under the TRA in the period in which the payment is deemed to be probable. Further, payments under the TRA are only expected to be made in periods following the filing of a tax return in which we are able to utilize tax benefits described above to reduce our cash taxes paid to a taxing authority.

(l) Noncontrolling Interests

The noncontrolling interests represent the economic interests of EWC Ventures held by members other than the Company. Income or loss is attributed to the noncontrolling interests based on their contractual distribution rights, and the relative percentages of EWC Ventures Units held by the Company and the other holders of EWC Ventures Units during the period.

(m) Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing the net income (loss) attributable to Class A common stockholders by the number of weighted-average shares of Class A common stock outstanding. Shares of our Class B common stock do not share in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted net income (loss) per share of Class B common stock under the two-class method has not been presented.

Diluted net income (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Class A common shareholders by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities using the more dilutive of either the treasury stock method or the if-converted method. Shares of our Class B common stock are considered potentially dilutive shares of Class A common stock as they are convertible into shares of Class A common stock when exchanged with a corresponding number of EWC Ventures Units. Diluted net income (loss) per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

(n) Cash and cash equivalents

Cash and cash equivalents are comprised of cash on hand, demand deposits with financial institutions, and short-term highly liquid investments with original maturities of 90 days or less. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.

(o) Restricted Cash

In accordance with the Company’s securitized financing facility, which is described in Note 9—Long-term debt, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”). The Company holds restricted cash that primarily represents cash collections held by the Trustee, which includes interest, principal, and commitment fee reserves. Restricted cash has been combined with cash and cash equivalents when reconciling the beginning and end of period balances in the Consolidated Statements of Cash Flows.

(p) Accounts receivable

Accounts receivable are recorded at net realizable value, consisting of the carrying amount less an allowance for doubtful accounts, as needed. The Company evaluates its accounts receivable on an ongoing basis and may establish an allowance for doubtful accounts based on a combination of historical experience, aging analysis and information related to specific accounts. Account balances are written off against the allowance after all means of collection have been exhausted and it is determined that further collection efforts will be unsuccessful. Recoveries of receivables previously written off are recorded as income when received. Historically, the Company has not had a significant amount of write-offs.

(q) Inventory

Inventory is substantially comprised of wax, wholesale products consumed in the application of wax services and European Wax Center branded products including in-grown hair serums, exfoliates, body washes, lotions, and creams. Inventory is recorded at the lower of cost or net realizable value using the FIFO method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company determines inventory reserves by regularly reviewing and evaluating individual inventory items and their movement history. Inventory is reserved when deemed obsolete or unsellable. The cost of inventories also includes freight-in and U.S. Customs fees for the purchase of inventory.

(r) Property and equipment, net

Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated remaining useful life of the related asset, which generally ranges from one to ten years, as shown in the table below.

Estimated useful lives for Property and equipment are as follows:


Computer and other equipment		3-5 years
Computer software		4-7 years
Furniture and fixtures		3-7 years
Leasehold improvements		Lesser of the estimated useful life or the remaining lease term.

Additions to property and equipment include betterments and purchases. When long-lived assets are sold or otherwise disposed of, the asset account and related accumulated depreciation are relieved, and any gain or loss is included in operating income. Repairs and maintenance expenses are charged to operations when incurred.

The Company invests in software solutions from third party software vendors. Typically, these software solutions may require significant configuration and/or may require customization to integrate into the Company’s infrastructure. The Company includes these software purchases and direct consultant configuration fees within property and equipment, net on the Consolidated Balance Sheets. These purchases are segregated and not amortized until the software solution or significant components are ready for their intended use. Capitalized software costs are amortized on a straight-line basis over the asset’s estimated useful life. Expenses related to software solutions that do not qualify for capitalization are expensed as incurred. Recurring licensing or maintenance fees are expensed as incurred.

(s) Impairment or disposal of long-lived assets

The Company reviews long-lived assets, including property and equipment and amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for impairment, then assets are required to be grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the undiscounted future net cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

(t) Leases

The Company leases various corporate-owned centers and office space to support ongoing business operations. We account for leases in accordance with ASC Topic 842, “Leases.” In accordance with ASC 842, we recognize the following for all leases, with the exception of short-term leases, on our Consolidated Balance Sheets at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

We determine if an arrangement is a lease at the inception of the arrangement. A contract is or contains a lease if it conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Lease liabilities are recognized based on the present value of lease payments over the lease term at the arrangement’s commencement date. Right-of-use assets are recognized based on the amount of the measurement of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received and any initial direct costs incurred. Renewal options are included in the calculation of our right-of-use assets and lease liabilities at commencement when it is determined that they are reasonably certain of exercise based on an analysis of the relevant facts and circumstances. As the implicit rate of our lease agreements is usually not readily determinable, we generally use our incremental borrowing rate in determining the present value of lease payments. We determine our incremental borrowing rate based on information available to us at the lease commencement date. Information we consider in the determination of our incremental borrowing rate includes factors such as our credit ratings, credit spreads, the term of the lease agreement and the impact of collateral. Certain of our lease arrangements contain lease and non-lease components. We have elected to account for non-lease components related to real estate leases as a part of the related lease components. As such, all fixed payments included in a real estate lease agreement are included in the measurement of the lease liabilities and the corresponding right-of-use assets and variable payments are presented and disclosed as variable lease cost. For all other leases we account lease and non-lease components separately. Leases with an initial term of 12 months or less are not recognized on our balance sheet. We recognize the expense for these leases on a straight-line basis over the lease term. Rent expense arising from our operating leases is included within selling, general and administrative expense in the Consolidated Statements of Operations.

(u) Goodwill and indefinite-lived intangible assets

The Company’s indefinite-lived intangible assets consist of goodwill and trade names, which are not subject to amortization. The Company reviews the recoverability of goodwill and its trade names on an annual basis (October 1st of the fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Impairment indicators that may necessitate impairment testing between the Company’s annual impairment tests include, but are not limited to, underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the overall business, and significant negative industry or economic trends.

Goodwill is recognized for the excess of the fair value of an acquired entity over the amounts assigned to identifiable assets acquired and liabilities assumed in a business combination and is not subject to amortization. Goodwill is tested for impairment at a reporting unit level. For all periods presented, the Company concluded that we have one reporting unit, which is also our sole operating segment. The Company first performs a qualitative assessment of goodwill, a Step 0 analysis, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. When necessary, a quantitative impairment test of goodwill is performed, comparing the fair value of the reporting unit to the carrying value. If the reporting unit’s carrying value exceeds its fair value, an impairment loss equal to the difference between the carrying value of the reporting unit and its fair value is recorded against goodwill. No impairment was recorded against goodwill for the fiscal years 2022, 2021 or 2020.

Indefinite-lived intangible assets, including the Company’s trade names, are tested for impairment at the unit of account. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. When necessary, a quantitative impairment test is performed by making a determination of the fair value of the intangible asset. If the fair value of the intangible asset is less than its carrying value, an impairment loss is recognized in an amount equal to the difference. If an indefinite-lived intangible is subsequently determined to have a finite useful life, the asset is first tested for impairment as described above and then amortized prospectively over its estimated remaining useful life in the same manner as other intangible assets that are subject to amortization. No impairment was recorded against the Company’s trade names for the fiscal years 2022, 2021 or 2020.

It is possible that changes in circumstances or changes in management’s judgments, assumptions and estimates could result in an impairment charge of a portion or all of its goodwill or other intangible assets.

(v) Fair value measurements

ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

•

(Level 1) Quoted prices in active markets for identical assets or liabilities.

•

(Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.

•

(Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.

Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

(w) Financial instruments

The carrying values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. Our outstanding Class A-2 Notes, as defined in Note 9—Long-term debt, had an approximate fair value of $356,648 as of December 31, 2022.

(x) Derivative instruments and hedging activities

The Company has, in the past, used interest rate caps to manage its exposure to variable interest rates. The Company’s policy is to not use any financial instruments for trading or other speculative purposes.

Derivatives are recorded at fair value. If a derivative is designated as a cash flow hedge, the changes in fair value are recognized as a component of accumulated other comprehensive income (loss) until the underlying hedge item is recognized in earnings. Fair values of derivative contracts are classified as current or long-term, depending on the maturity date of the derivative contract, and are presented in Other current liabilities and Other long-term liabilities, as applicable, on the Consolidated Balance Sheets. The cash flows from derivatives treated as hedges are classified on the Consolidated Statements of Cash Flows in the same category as the item being hedged.

The Company has elected to use the income approach to value the derivatives, using observable Level 2 market expectations at measurement dates and standard valuation techniques to convert future amounts to a single present discounted amount reflecting current market expectations about those future amounts. Level 2 inputs for derivative valuations are limited to inputs other than those quoted prices that are observable for the asset or liability (specifically LIBOR swap rates and credit risk at commonly quoted intervals). Mid-market pricing is used as a practical expedient. Derivatives are discounted to present value at the measurement date at overnight index swap rates.

(y) Deferred financing costs

Deferred financing costs represent the cost of obtaining financing arrangements and are amortized over the term of the related debt agreement using the straight-line method for revolving debt arrangements and the effective interest method for term debt arrangements. Deferred financing costs related to revolving debt arrangements are recorded as a component of other non-current assets on the Consolidated Balance Sheets. Deferred financing costs related to term debt arrangement are reflected as a direct reduction of the related debt liability on the Consolidated Balance Sheets. Amortization of deferred financing costs are included in interest expense on the Consolidated Statements of Operations.

(z) Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income (loss) was entirely comprised of the cumulative change in the fair value of our cash flow hedge. In connection with the termination of our interest rate cap, the entire remaining balance of accumulated other comprehensive income (loss) was reclassified to earnings in fiscal year 2022. See Note 10— Derivative Instruments and Hedging for more information. There were no reclassifications of other comprehensive income (loss) to earnings during fiscal years 2021 and 2020.

(aa) Class A Founders’ Units and Class D Units subject to possible redemption

Prior to the Reorganization Transactions described in Note 1, the Company previously classified the Class A Founders’ Units and Class D Units as temporary equity in the mezzanine section of the Consolidated Balance Sheets due to the contingently redeemable nature of the Class A Founders’ Units and Class D Units. The Company believed that the related contingent events and the redemption of the Class A Founders’ Units is probable, and therefore the Class A Founders’ Units were measured at fair value. The Company’s accounting policy was to record the shares at the current redemption value (i.e. fair value) versus accreting over time to the redemption value. The Class A Founders’ Units and Class D Units are no longer outstanding as they were converted to EWC Ventures Units concurrent with the Reorganization Transactions.

(bb) Implications of being an Emerging Growth Company

The Company is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) and may take advantage of reduced reporting requirements that are otherwise applicable to public companies. Section 107 of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with those standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards. We also intend to take advantage of some of the reduced regulatory and reporting requirements of emerging growth companies pursuant to the JOBS Act so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

(cc) Recently adopted accounting pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases and established ASC Topic 842, Leases (“ASC 842”), which supersedes ASC Topic 840, Leases. ASC 842 requires a lessee to recognize a lease right-of-use (“ROU”) asset and a corresponding lease liability on its balance sheet along with additional qualitative and quantitative disclosures.

We adopted this guidance on December 26, 2021 (the beginning of fiscal year 2022) by applying the provisions of this guidance on a modified retrospective basis as of the effective date. As such, comparative periods have not been restated and the disclosures required under the new standard have not been provided for periods prior to December 26, 2021. However, we have provided the applicable disclosures required under ASC 840 for the prior year comparative period. We elected the package of practical expedients whereby we were not required to: i) reassess whether any expired or existing contracts are or contain leases, ii) reassess the lease classification of existing leases and iii) reassess initial direct costs for any existing leases. We did not elect the hindsight practical expedient or the practical expedient related to land easements. We have assessed and updated our business processes, systems and controls to ensure compliance with the recognition and disclosure requirements of the new standard.

Adoption of the new standard resulted in the recording of right-of-use assets and lease liabilities of $6,799 and $7,630, respectively, as of December 26, 2021 to recognize operating leases which were not recognized on our Consolidated Balance Sheets under previous

guidance. The adoption of this guidance did not have a material impact on our Consolidated Statements of Operations or on our Consolidated Statements of Cash Flows as our leases retained their classifications as determined under previous guidance.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update, as well as subsequently issued amendments, provide temporary, optional guidance to ease the burden in accounting for reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include relief related to contract modifications and hedging relationships. The relief provided by this ASU does not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024. However, hedging relationships that apply certain optional expedients prior to December 31, 2024, will be retained through the end of the hedging relationship, including for periods after December 31, 2024. We do not expect that this guidance will have any impact on our financial statements.

(dd) Recently issued accounting pronouncements not yet adopted

In June 2017, the FASB issued ASU 2016-13, Financial Instruments (Topic 326)—Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. The standard replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13, and related amendments, are effective for fiscal years beginning after December 15, 2022. We adopted this guidance on January 1, 2023 (the beginning of fiscal year 2023). The adoption of this guidance did not have a significant impact on our financial statements.

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Measurements

3. Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

We use valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to their present value on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. These two types of inputs create a three-tier fair value hierarchy that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Refer to Fair Value discussion within the Significant Accounting Policies section of Note 2 for the three levels of the valuation hierarchy.

The Company previously used an interest rate cap to manage its interest rate exposure. However, the Company terminated its interest rate cap in March 2022. These interest rate caps were recorded at fair value. Changes in fair value of our interest rate caps were previously recognized as a component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. However, upon termination of the interest rate cap the balance of our accumulated other comprehensive income (loss) was reclassified to the Consolidated Statement of Operations as a component of interest expense. Refer to Note 10—Derivative instruments and hedging activity for additional discussion.

Fair value measurements are summarized below:


	Fair Market Value			Quoted prices in active markets for identical assets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Interest rate cap
December 31, 2022	$	—		$	—	$	—		$	—
December 25, 2021	$	(242	)	$	—	$	(242	)	$	—

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Prepaid expenses and other current assets

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2022

4. Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following:


	December 31, 2022		December 25, 2021
Prepaid inventory	$	—	$	334
Prepaid insurance		1,966		2,308
Prepaid rent		192		—
Prepaid technology		1,656		1,134
Prepaid marketing		844		623
Prepaid commissions		410		425
Prepaid other & other current assets		506		1,103
Total	$	5,574	$	5,927

The prepaid other & other current assets amounts are primarily composed of prepaid maintenance contracts and sales taxes.

Inventory

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventory

5. Inventory

Inventory is comprised of finished goods. The allowance for obsolete inventory included in inventory on the Consolidated Balance Sheets was $187 and $5,055 as of December 31, 2022 and December 25, 2021, respectively.

A summary of changes in the inventory obsolescence reserve for fiscal years 2022 and 2021 is as follows:


	December 31, 2022			December 25, 2021
Balance, beginning of year	$	5,055		$	6,599
Charged to costs and expenses		(66	)		317
Write-offs of reserved inventory		(4,802	)		(1,861	)
Balance, end of year	$	187		$	5,055

Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

6. Property and equipment, net

Property and equipment consisted of the following:


	December 31, 2022			December 25, 2021
Computer and other equipment	$	678		$	583
Computer software		7,369			7,458
Furniture and fixtures		1,155			1,162
Leasehold improvements		2,653			2,433
Construction in process		68			269
Property and equipment		11,923			11,905
Less: accumulated depreciation		(9,176	)		(8,042	)
Property and equipment, net	$	2,747		$	3,863

Depreciation and amortization expense related to property and equipment was $1,265, $1,489 and $1,649 for the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively.

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

7. Goodwill and intangible assets, net

A summary of goodwill and intangible assets as of December 31, 2022 and December 25, 2021 is as follows:


	December 31, 2022
	Weighted Average Remaining Useful Life (Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Franchisee relationships		5.73	$	114,594	$	(48,889	)	$	65,705
Reacquired rights		7.31		76,545		(23,034	)		53,511
				191,139		(71,923	)		119,216
Indefinite-lived intangible:
Trade name	N/A			63,814		—			63,814
Total intangible assets			$	254,953	$	(71,923	)	$	183,030
Goodwill			$	328,551	$	—		$	328,551


	December 25, 2021
	Weighted Average Remaining Useful Life (Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Franchisee relationships		6.75	$	114,594	$	(37,294	)	$	77,300
Reacquired rights		8.31		76,545		(15,673	)		60,872
Favorable lease assets		0.19		170		(161	)		9
				191,309		(53,128	)		138,181
Indefinite-lived intangible:
Trade name	N/A			63,814		—			63,814
Total intangible assets			$	255,123	$	(53,128	)	$	201,995
Goodwill			$	328,551	$	—		$	328,551

Area representative rights represent an agreement with area representatives to sell franchise licenses and provide support to franchisees in a geographic region. From time to time, the Company enters into agreements to reacquire certain area representative rights. There were no reacquisition costs in the year ended December 31, 2022. Reacquisition costs totaled $7,644 and $32,791 for the years ended December 25, 2021 and December 26, 2020, respectively.

The initial term of the area representative agreements is ten years with an additional ten-year renewal at the option of the area representative. The reacquired rights are amortized on a straight-line basis over the remaining expected term of the agreement prior to the reacquisition. Amortization expense for reacquired rights was $7,362, $7,368 and $6,457 for the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively.

Franchisee relationships are amortized on a straight-line basis over the estimated useful life of the asset. Amortization expense for franchisee relationships was $11,595, $11,424 and $11,428 for the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively.

Amortization expense for franchisee relationship and reacquired rights are included in depreciation and amortization expense on the Consolidated Statements of Operations.

Future expected amortization expense of the Company’s intangible assets as of December 31, 2022 is as follows:


Fiscal Years Ending	Franchisee Relationships		Reacquired Rights
2023	$	11,595	$	7,362
2024		11,595		7,362
2025		11,595		7,362
2026		11,595		7,362
2027		11,595		7,362
Thereafter		7,730		16,701
Total	$	65,705	$	53,511

Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

8. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following:


	December 31, 2022		December 25, 2021
Accounts payable	$	5,874	$	7,684
Accrued inventory		2,259		2,665
Accrued compensation		4,283		5,401
Accrued taxes and penalties		1,181		1,432
Accrued lease termination costs		—		588
Accrued technology and subscription fees		26		196
Accrued interest		933		1,477
Accrued professional fees		890		2,090
Accrued marketing		310		489
Accrued dividend equivalents		1,777		—
Other accrued liabilities		1,014		1,133
Total Accounts payable and accrued liabilities	$	18,547	$	23,155

Long-term Debt

12 Months Ended

Dec. 31, 2022

Long-term Debt

9. Long-term debt

Long-term debt consists of the following:


	December 31, 2022			December 25, 2021
Class A-2 Notes	$	398,000		$	—
2026 Term Loan		—			180,000
Less: current portion		(4,000	)		(5,625	)
Total long-term debt		394,000			174,375
Less: unamortized debt discount and deferred financing costs		(23,065	)		(1,768	)
Total long-term debt, net	$	370,935		$	172,607

2021 Debt Transactions

On August 9, 2021, EW Intermediate Holdco, LLC, a Delaware limited liability company (“Holdings”), EW Holdco, LLC, a Delaware limited liability company, as borrower (each indirect subsidiaries of the Company), entered into the 2026 Credit Agreement. The 2026 Credit Agreement was comprised of the 2026 Revolving Credit Facility and the 2026 Term Loan.

The proceeds from the 2026 Term Loan were used together with proceeds from our initial public offering to fully repay and terminate the previous secured term loan (the “Previous Term Loan”) and the previous secured revolving credit facility (the “Previous Revolving Credit Facility”). In connection with the repayment and termination of the Previous Term Loan and Previous Revolving Credit Facility we incurred a loss on debt extinguishment of $6,313, which was recorded as a component of interest expense for the year ended December 31, 2021 in the accompanying Consolidated Statements of Operations. Of this loss, $2,446 was attributable to the payment of the prepayment premium and related fees on the Previous Term Loan and $3,867 was due to the write-off of unamortized deferred financing costs. We incurred $1,924 in various lender and third-party fees in conjunction with this transaction. As discussed further below, in April 2022 the 2026 Term Loan was repaid and the 2026 Credit Agreement was terminated.

2022 Debt Transactions

On April 6, 2022 (the “Closing Date”), EWC Master Issuer LLC, a limited-purpose, bankruptcy remote, indirect subsidiary of the Company (the “Master Issuer”), completed a securitization transaction pursuant to which it issued $400,000 in aggregate principal amount of Series 2022-1 5.50% Fixed Rate Senior Secured Notes, Class A-2 (the “Class A-2 Notes”). We received $384,328 in proceeds from the issuance of the Class A-2 Notes after deducting the original issue discount of $15,672 and prior to paying any expenses related to the issuance.

In connection with the issuance of the Class A-2 Notes, the Master Issuer also entered into (i) a revolving financing facility that allows for the issuance of up to $40,000 in Variable Funding Notes (”Variable Funding Notes”), and certain letters of credit and (2) an advance funding facility with Bank of America, N.A. (“BofA”), whereby BofA and any other advance funding provider thereunder would, in certain specified circumstances, make certain debt service advances and collateral protection advances (not to exceed $5,000 in the aggregate). The Variable Funding Notes were undrawn at closing and as of December 31, 2022.

The net proceeds from the issuance of the Class A-2 Notes were used to repay the 2026 Term Loan, fund certain reserve amounts under the securitized financing facility, pay the transaction costs associated with the securitized financing facility, and fund a one-time special dividend to stockholders (See Note 13— Stockholder's equity).

We incurred a loss on debt extinguishment of $1,957 related to the repayment of the 2026 Term Loan which was recorded as a component of interest expense for the year ended December 31, 2022 in the accompanying Consolidated Statement of Operations. Of this loss, $1,880 was attributable to the write-off of unamortized debt discount and debt issuance costs and the remaining $77 was attributable to the payment of fees associated with the repayment of the 2026 Term Loan. In connection with the issuance of the Class A-2 Notes and the Variable Funding Notes we incurred $12,419 in lender and third-party fees. Of these fees, $10,858 and the original issue discount described above related to the Class A-2 Notes and have been recorded as a reduction of long-term debt on the accompanying Consolidated Balance Sheet. The remaining $1,561 of fees along with $148 of unamortized deferred financing costs related to the Variable Funding Notes have been recorded as other non-current assets on the accompanying Consolidated Balance Sheet. The debt discount and deferred financing costs attributed to Class A-2 Notes will be amortized to interest expense through March of 2027 (the “Anticipated Repayment Date”) using the effective interest method. The deferred financing costs attributed to the Variable Funding Notes will be amortized to interest expense on a straight-line basis through the Anticipated Repayment Date.

The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Notes.” The Notes were issued in a securitization transaction pursuant to which substantially all of the Company’s revenue-generating assets in the United States are held by the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned direct and indirect subsidiaries of EWC Holding Guarantor (including the Master Issuer) (collectively, the “Securitization Entities”) that have pledged substantially all of their assets to secure the Notes and, with respect to the Securitization Entities other than the Master Issuer, act as guarantors of the Notes.

While the Class A-2 Notes are outstanding, payments of principal and interest are required to be made on the Class A-2 Notes on a quarterly basis. The quarterly payments of principal on the Class A-2 Notes may be suspended in the event that the leverage ratio for the Company and its subsidiaries, including the securitization entities, is, in each case, less than or equal to 5.00x.

The legal final maturity date of the Class A-2 Notes is in March of 2052, but it is anticipated that, unless earlier prepaid to the extent permitted under the Base Indenture, dated April 6, 2022 (the “Indenture”), the Class A-2 Notes will be repaid on the Anticipated Repayment Date. If the Master Issuer has not repaid or refinanced the Class A-2 Notes prior to their Anticipated Repayment Date, additional interest will accrue on the Class A-2 Notes equal to the greater of (A) 5.00% per annum and (B) a per annum interest rate equal to the excess, if any, by which the sum of (i) the yield to maturity (adjusted to a quarterly bond equivalent basis) on such anticipated repayment date of the United States Treasury Security having a term closest to ten (10) years plus (ii) 5.00%, plus (iii) 3.87%, exceeds the original interest rate. The Class A-2 Notes rank pari passu with the Variable Funding Notes.

Interest on the Variable Funding Notes will be payable at per annum rates based on term SOFR (plus a credit adjustment spread) or the lenders’ commercial paper funding rate plus 212.5 basis points. There is a commitment fee on the unused portion of the Variable Funding Notes facility, equal to 50 basis points per annum. It is anticipated that the principal and interest on the Variable Funding Notes will be repaid in full on or prior to March 2025, subject to two additional one-year extensions at the option of the Company. Following the anticipated date of repayment (and any extensions thereof), additional interest will accrue on the Variable Funding Notes equal to 5.00% per annum.

The Notes are secured by a security interest in substantially all of the assets of the Securitization Entities. The assets of the Securitization Entities include substantially all of the Company’s revenue-generating assets in the United States, which principally consist of franchise-related agreements, certain supply, distribution and logistics services agreements, intellectual property and license agreements for the use of intellectual property.

The Notes are subject to a series of financial and non-financial covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain a stated debt service coverage ratio, the sum of system-wide sales being below certain levels on certain measurement dates, certain manager termination events (including in certain cases a change of control of EWC Ventures), an event of default and the failure to repay or refinance the Notes on the applicable anticipated repayment date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective and certain judgments.

Annual future principal payments due on long-term debt as of December 31, 2022 are as follows:


Fiscal Years Ending
2023	$	4,000
2024		4,000
2025		4,000
2026		4,000
2027		382,000
Thereafter		—
Total long-term debt principal	$	398,000

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities

10. Derivative instruments and hedging activities

In December 2018, the Company entered into an interest rate cap derivative instrument which was designated as a cash flow hedge. In December 2018, the Company entered into an interest rate cap derivative instrument which was designated as a cash flow hedge. The Company’s objective was to mitigate the impact of interest expense fluctuations on the Company’s profitability resulting from interest rate changes by capping the LIBOR component of the interest rate at 4.5% on $175,000 of principal outstanding under its long-term debt arrangement, as the interest rate cap provided for payments from the counterparty when LIBOR rises above 4.5%. The interest rate cap was terminated in March 2022.

Changes in the fair value of the interest rate cap were recognized in other comprehensive loss and was reclassified out of accumulated other comprehensive income (loss) and into interest expense upon termination of the interest rate cap. Cash flows related to derivatives qualifying as hedges are included in the same section of the Consolidated Statements of Cash Flows as the underlying assets and liabilities being hedged. Refer to Note 3—Fair value measurements for information on the fair value of the Company’s interest rate cap derivative instrument.

Our cash flow hedge position related to the interest rate cap derivative instrument is as follows:


	Balance Sheet Classification	December 31, 2022		December 25, 2021
Derivatives designated as hedging instruments:
Interest rate cap, current portion	Other current liabilities	$	—	$	(182	)
Interest rate cap, non-current portion	Other long-term liabilities		—		(60	)
Total derivative liabilities designated as hedging instruments		$	—	$	(242	)

The table below presents the net unrealized gain (loss) recognized in other comprehensive income (loss) (“OCI”) resulting from fair value adjustments of hedging instruments:


	Net Unrealized Gain Recognized in OCI
	Year Ended		Year Ended		Year Ended
	December 31, 2022		December 25, 2021		December 26, 2020
Derivatives designated as hedging instruments:
Interest rate cap	$	—	$	286	$	208
Total	$	—	$	286	$	208

As a result of the termination of the interest rate cap, we recognized a gain of approximately $138 as a component of interest expense on the Consolidated Statement of Operations for the year ended December 31, 2022. Of this gain, $196 related to fair value adjustments which was partially offset by $58 related to cash paid to terminate the interest rate cap.

Leases

12 Months Ended

Dec. 31, 2022

Lessee Disclosure [Abstract]

Leases

11. Leases

The Company leases various corporate-owned centers and office space to support ongoing business operations under non-cancellable lease agreements with terms expiring through 2032. These lease agreements typically have a lease term ranging from one to 10 years. Many of our leases contain renewal options which are exercisable at our discretion. These renewal options allow us to extend certain leases for an additional five to 10 years. Most lease arrangements contain tenant improvement allowances, rent holidays and/or rent escalation clauses. In addition to base rent, certain leases require the Company to pay a portion of real estate taxes, utilities, building operating expenses, insurance and other charges in addition to rent. Certain of our leases are subject to variable lease payments that are determined on a basis other than an index or a rate. As such, they are excluded from the calculation of lease liabilities and right-of-use

assets and are expensed as incurred. We currently have two sublease agreements in which we sublease real estate no longer used by the Company to other entities with terms expiring through 2023. Neither of these sublease agreements provides for any renewal options and expire on the same dates as their respective head leases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have no related party leases.

Total lease costs consisted of the following:


	Year Ended December 31, 2022
Operating lease costs	$	2,052
Variable lease costs		729
Sublease income		(614	)
Total lease costs	$	2,167

Rent expense, including common area maintenance and property taxes, was $2,429, and $3,064 for the years ended December 25, 2021 and December 26, 2020 respectively, and is included in selling, general and administrative expense on the Consolidated Statements of Operations.

Future maturities of operating lease liabilities as of December 31, 2022 were as follows:


Fiscal Years Ending
2023	$	1,524
2024		1,346
2025		1,232
2026		880
2027		863
Thereafter		290
Total lease payments		6,135
Less: amount representing interest		(596	)
Present value of lease liabilities		5,539
Less: current portion		(1,312	)
Operating lease liabilities, net of current portion	$	4,227

Future minimum rental payments as of December 25, 2021 were as follows:


Fiscal Years Ending
2022	$	2,098
2023		1,524
2024		1,346
2025		1,232
2026		880
Thereafter		1,152
Total	$	8,232

The weighted average lease term and discount rate of our operating leases as of December 31, 2022 were as follows:



Weighted average remaining lease term (years)	4.6
Weighted average discount rate	4.4	%

Cash paid for amounts included in the measurement of lease liabilities was as follows:


	Year Ended December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,331

Commitment and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

12. Commitments and contingencies

Purchase Commitments

As of December 31, 2022, the Company had purchase commitments of approximately $16,221, primarily related to inventory and advertising, of which the Company expects to pay $13,111 during fiscal year 2023.

Litigation

The Company is exposed to various asserted and unasserted potential claims encountered in the normal course of business. Although the outcomes of potential legal proceedings are inherently difficult to predict, the Company does not expect the resolution of these occasional legal proceedings to have a material effect on its financial position, results of operations, or cash flow.

Stockholder’s Equity

12 Months Ended

Dec. 31, 2022

Stockholder’s equity

13. Stockholder’s equity

Under the Company’s amended and restated certificate of incorporation the Company is authorized to issue up to 600,000,000 shares of Class A common stock, par value $0.00001 per share (“Class A common stock”), 60,000,000 shares of Class B common stock, par value $0.00001 per share (“Class B common stock”) and 100,000,000 shares of preferred stock, par value $0.00001 per share. The Class A common stock and Class B common stock each provide holders with one vote on all matters submitted to a vote of stockholders. The holders of Class B common stock do not have any of the economic rights provided to holders of Class A common stock.

Subject to certain restrictions EWC Ventures Post-IPO Members have the right to exchange their EWC Ventures Units, together with a corresponding number of shares of our Class B common stock for, at our option, (i) shares of the Company's Class A common stock on a one-for-one basis (the “Share Exchange”) or (ii) cash (based on the market price of the Company's Class A common stock) (the “Cash Exchange”).

Secondary Public Offerings

On November 15, 2021, we completed a secondary public offering of 2,701,601 shares of our Class A common stock to the public at a price of $26.25 per share for net proceeds of $67,900 after deducting underwriting discounts and commissions and prior to paying any offering expenses. In addition, certain of the Company's stockholders (the "selling stockholders") sold an additional 3,297,922 shares of the Company's Class A common stock. The Company received no proceeds from the sale of shares by the selling stockholders. The shares sold by the Company and the selling stockholders were inclusive of 782,546 shares of the Company's Class A common stock sold pursuant to the underwriters' option to purchase additional shares of the Company's Class A common stock. The proceeds from the offering were used to purchase to 2,701,601 EWC Ventures Units and corresponding shares of Class B common stock for $67,900 from certain EWC Ventures Post-IPO Members. In connection with this offering we incurred offering expenses of $1,300.

On May 24, 2022, we completed a secondary public offering of 5,175,000 shares of our Class A common stock at a price of $21.50 per share. All of the shares sold in the offering were sold by certain of the Company’s stockholders. As such, we did not receive any proceeds from this offering. The shares sold in the offering consisted of 2,771,772 existing shares of Class A common stock and 2,403,228 newly issued Class A shares issued in connection with the exercise of exchange rights in which 2,403,228 EWC Ventures Units and corresponding number of shares of Class B common stock were exchanged for the newly issued shares of Class A common stock.

Share Exchange Transactions

During the year ended December 25, 2021 certain EWC Ventures Post-IPO Members exercised their exchange rights and exchanged 2,850,000 EWC Ventures Units and the corresponding shares of Class B common stock for 2,850,000 newly issued shares of Class A common stock.

During the year ended December 31, 2022 certain EWC Ventures Post-IPO Members exercised their exchange rights and exchanged 8,220,250 EWC Ventures Units and the corresponding shares of Class B common stock for 8,220,250 newly issued shares of Class A common stock. These exchange transactions, together with the share exchanges completed in connection with the secondary public offerings described above, increased the Company’s ownership interest in EWC Ventures.

Special Cash Dividend

On April 11, 2022, the Board of Directors of the Company declared a special cash dividend of $122,227, or $3.30 per share, of Class A common stock which was paid during the year ended December 31, 2022 to its Class A common stock holders. The Company also paid dividend equivalents of $83,020, or $3.30 per unit, to holders of EWC Ventures Units during the year ended December 31, 2022. These payments were funded through existing cash and proceeds from the Company’s securitization transaction (See Note 9 for more information). In addition, as of December 31, 2022 we had $3,757 of dividend equivalents accrued for future payment to holders of unvested EWC Ventures Units to be paid upon the vesting of the related awards. Of this amount, $1,777 and $1,980 were recorded in accounts payable and accrued liabilities and other long-term liabilities, respectively, on the accompanying Consolidated Balance Sheets.

Share Repurchases

On November 2, 2022, the Company’s Board of Directors approved a stock repurchase program (the “Repurchase Program”), which authorized the Company to repurchase, from time to time, as market conditions warrant, up to $40,000 of its shares of Class A common stock. The share repurchase program does not obligate the Company to repurchase any particular amount of Class A common stock, and it could be modified, suspended or discontinued at any time. The timing and amount of repurchases will be determined by the Company’s management at its discretion based on a variety of factors such as the market price of its Class A common stock, corporate and legal requirements, general market and economic conditions, and compliance with the terms of agreements governing the Company’s outstanding indebtedness. Purchases of the Company’s Class A common stock may be made in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, in privately negotiated transactions or by other means in accordance with federal securities laws. The Company may elect to implement a 10b5-1 repurchase program, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. During the year ended December 31, 2022, the Company repurchased 715,640 shares of Class A common stock at an average price of $14.09 per share for $10,080.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Noncontrolling interest

12 Months Ended

Dec. 31, 2022

Disaggregation Of Revenue [Line Items]

Noncontrolling interest

14. Noncontrolling interest

In connection with the Reorganization Transactions, we became the sole managing member of EWC Ventures and, as a result of this control, and because we have a substantial financial interest in EWC Ventures, we consolidate the financial results of EWC Ventures. We report noncontrolling interests representing the economic interests in EWC Ventures held by the EWC Ventures Post-IPO Members. Income or loss is attributed to the noncontrolling interests based on their contractual distribution rights, and the relative percentages of EWC Ventures Units by us and the other holders of EWC Ventures Units during the period.

The EWC Ventures LLC Agreement permits the members of EWC Ventures to exchange EWC Ventures Units, together with related shares of our Class B common stock, for shares of our Class A common stock on a one-for-one basis or, at the election of the Company, for cash at the current fair value on the date of the exchange. Changes in the Company’s ownership interest in EWC Ventures while retaining control of EWC Ventures will be accounted for as equity transactions. As such, future redemptions or direct exchanges of EWC Ventures Units by the other members will result in a change in ownership and reduce the amount recorded as noncontrolling interest and increase additional paid-in capital. Additionally, certain members of EWC Ventures hold unvested EWC Ventures Units that are subject to service, performance, and/or market conditions (See Note 16—Equity Based Compensation). The vesting of EWC Ventures units will result in a change in ownership and increase the amount recorded as noncontrolling interest and decrease additional paid-in capital.

The following table summarizes the ownership of EWC Ventures as of December 31, 2022:


	December 31, 2022
	Units Owned		Ownership Percentage
European Wax Center, Inc.		44,561,685		72.1	%
Noncontrolling Interest		17,260,035		27.9	%
Total		61,821,720		100.0	%

The following table presents the effect of changes in the Company’s ownership interest in EWC Ventures on the Company’s equity for the periods indicated:


	Year Ended December 31, 2022		Period of August 4-December 25, 2021
Net income (loss) attributable to European Wax Center, Inc.	$	7,277	$	(3,415	)
Transfers from noncontrolling interests:
Increase in additional-paid-in-capital as a result in ownership changes in EWC Ventures		21,412		34,208
Net increase in equity of European Wax Center, Inc. due to equity interest transactions with noncontrolling interests	$	28,689	$	30,793

Revenue from Contract with Customers

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customers

15. Revenue from contracts with customers

Costs to obtain a contract

Costs to obtain a contract include commissions paid to area representatives associated with the sale of franchises within the area representative’s respective region. As of December 31, 2022 and December 25, 2021, $410 and $425 of commissions paid in connection with the sale of franchise licenses are capitalized within prepaid expenses and other current assets (short-term portion) and $1,811 and $2,221 are capitalized within other non-current assets (long-term portion), respectively. The commissions are amortized to expense over the expected life of the related franchise agreement. $425, $437 and $429 of commissions was amortized to selling, general and administrative expenses during the years ended December 31, 2022, December 25, 2021 and December 26, 2020, respectively.

Contract liabilities

Contract liabilities consist of deferred revenue resulting from franchise fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Also included are service revenues from corporate-owned centers, including customer prepayments in connection with the Wax Pass program. Contract liabilities are classified as deferred revenue on the Consolidated Balance Sheets.

Deferred franchise fees are reduced as fees are recognized in revenue over the term of the franchise license for the respective center. Deferred service revenues are recognized over time as the services are performed.

The following table reflects the change in contract liabilities for the periods indicated:


	Contract liabilities
Balance at December 28, 2019	$	9,257
Revenue recognized that was included in the contract liability at the beginning of the year		(2,461	)
Increase, excluding amounts recognized as revenue during the period		2,083
Balance at December 26, 2020		8,879
Revenue recognized that was included in the contract liability at the beginning of the year		(2,599	)
Increase, excluding amounts recognized as revenue during the period		3,511
Balance at December 25, 2021		9,791
Revenue recognized that was included in the contract liability at the beginning of the year		(2,289	)
Increase, excluding amounts recognized as revenue during the period		3,483
Balance at December 31, 2022	$	10,985

The weighted average remaining amortization period for deferred revenue is 4.2 years.

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022. The Company has elected to exclude short term contracts and any other variable consideration recognized on an “as invoiced” basis.


Contract liabilities to be recognized in:	Amount
2023	$	2,819
2024		1,265
2025		1,202
2026		1,131
2027		1,021
Thereafter		3,547
Total	$	10,985

The summary set forth below represents the balances in deferred revenue as of December 31, 2022 and December 25, 2021:


	December 31, 2022		December 25, 2021
Franchise fees	$	8,167	$	7,911
Service revenue		2,818		1,880
Total deferred revenue		10,985		9,791
Long-term portion of deferred revenue		6,901		6,787
Current portion of deferred revenue	$	4,084	$	3,004

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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E W C Ventures L L C And Subsidiaries [Member]

Equity Based Compensation

12 Months Ended

Dec. 31, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Equity Based Compensation

16. Equity Based Compensation

2021 Omnibus Incentive Plan

In August 2021, our board of directors adopted the 2021 Omnibus Incentive Plan (the “2021 Incentive Plan”) which became effective upon consummation of our IPO and provides for the grant of equity-based awards to employees, consultants, and non-employee directors. The 2021 Incentive Plan provides for an aggregate of 6,374,273 shares of Class A common stock that are reserved for issuance in respect of awards granted under the 2021 Incentive Plan. In addition, the number of shares reserved for issuance under the 2021 Incentive Plan will automatically increase each fiscal year beginning with fiscal year 2022 and ending with fiscal year 2031 by the lesser of (a) 1% of the total number of shares outstanding on the last day of the immediately preceding fiscal year on a fully diluted basis assuming that all shares available for issuance under the 2021 Incentive Plan are issued and outstanding or (b) such number of shares determined by our board of directors. As of December 31, 2022 there were 6,249,708 shares available for issuance under the 2021 Incentive Plan.

Class A Common Stock Options

During the year ended December 31, 2022, no stock options were granted under the 2021 Incentive Plan. During the year ended December 25, 2021, we granted 322,997 stock options with an exercise price of $17.00 per share to certain employees under the 2021 Incentive Plan. The stock options granted will cliff vest on the third anniversary of the date of grant, subject in all cases to continued employment on the applicable vesting date. The weighted average grant date fair value of the stock options was $7.48. The total grant date fair value of the stock options will be recognized as equity-based compensation expense over the vesting period.

A summary of activity related to the options is as follows:


	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2021		301,464		$	17.00
Granted		—			—
Exercised		—			—
Expired		—			—
Forfeited		(88,286	)		17.00
Outstanding at December 31, 2022		213,178		$	17.00		8.6	$	—
Exercisable at December 31, 2022		—			—		—		—

During the years ended December 31, 2022 and December 25, 2021, we recognized $440 and $305 of equity-based compensation expense related to the options in selling, general, and administrative expense, respectively. As the options were granted in connection with the IPO, there was no expense recorded in fiscal years 2020. As of December 31, 2022, there was $841 of total unrecognized compensation expense related to outstanding stock options expected to be recognized over a weighted average period of 1.6 years.

The Company estimates the fair value of the options using the Black-Scholes option pricing model. The following table presents the assumptions used in the Black-Scholes model to determine the fair value of the stock options for the year ended December 25, 2021. Black-Scholes assumptions have not been disclosed for any other periods presented as there were no stock options granted in those periods.


	For the Year Ended December 25, 2021
Expected dividend yield		0.0	%
Expected volatility		43.8	%
Risk-free rate		0.9	%
Expected term (in years)		6.5

A description of each of the inputs to the Black-Scholes model is as follows:

•

Expected dividend yield - An increase in the expected dividend yield would decrease compensation expense.

•

Expected volatility - This is a measure of the amount by which the price of the equity instrument has fluctuated or is expected to fluctuate. The expected volatility was based on the historical volatility of a group of guideline companies. An increase in expected volatility would increase compensation expense.

•

Risk-free interest rate - This is the U.S. Treasury rate as of the measurement date having a term approximating the expected life of the award. An increase in the risk-free interest rate would increase compensation expense.

•

Expected term - The period of time over which the awards are expected to remain outstanding. The Company estimates the expected term as the mid-point between actual or expected vesting date and the contractual term. An increase in the expected term would increase compensation expense.

Restricted Stock Units

During the years ended December 31, 2022 and December 25, 2021, we granted 69,266 and 494,388 restricted stock units (“RSUs”), respectively, to certain directors and employees under the 2021 Incentive Plan. The awards generally vest in three equal installments of 33.33% on each of the first three anniversaries of the date of grant, subject in all cases to continued employment on the applicable vesting date. The total grant date fair value of the restricted stock units will be recognized as equity-based compensation expense over the vesting period. The grant date fair value of the restricted stock units is determined based on the fair value of the underlying Class A common stock on the date of grant.

A summary of activity related to the RSUs is as follows:


	Number of RSUs			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		455,971		$	17.41
Granted		69,266			21.42
Vested		(157,349	)		17.33
Forfeited		(82,429	)		18.30
Outstanding at December 31, 2022		285,459		$	18.24

During the years ended December 31, 2022 and December 25, 2021, we recognized $2,839 and $1,219 of equity-based compensation expense related to the RSUs in selling, general, and administrative expense. As the RSUs were granted in connection with and subsequent to the IPO, there was no expense recorded in fiscal years 2020. As of December 31, 2022, there was $4,053 of total unrecognized compensation expense related to outstanding RSUs expected to be recognized over a weighted average period of 1.6 years. The fair value of RSUs vested during the years ended December 31, 2022 and December 25, 2021 were $3,117 and $307, respectively.

Management Holdco Incentive Plan

On December 12, 2018, EWC Ventures LLC and Management Holdco adopted the Amended and Restated EWC Management Holdco, LLC Equity Incentive Plan (the “LLC Incentive Plan”), under which Management Holdco granted units of Management Holdco (“Incentive Units”) to employees, directors, and consultants of EWC Ventures LLC and its subsidiaries. In connection with the Reorganization Transactions, modifications to certain pre-reorganization equity-based awards outstanding under the LLC Incentive Plan were made, primarily with respect to certain vesting conditions, which resulted in the Company recording additional equity-based compensation expense of $8,489 during the year ended December 25, 2021. The terms of awards outstanding under the LLC Incentive plan are described below. There will be no further grants made under the LLC Incentive Plan.

Time-based Units

Prior to the consummation of the Reorganization Transactions, EWC Ventures LLC granted time-based Incentive Units under the LLC Incentive Plan. The time-based Incentive Units generally vest over 5 years, and the Company expenses time-based Incentive Units based on the grant date fair value of the award on a straight-line basis over the associated service period of the award. In connection with the Reorganization Transactions, the time-based Incentive Units were recapitalized into a new number of EWC Ventures Units (which we refer to as the “Time-based Units” both before and after the Reorganization Transactions), equal to the same aggregate fair value as the award immediately prior to the Reorganization Transactions, and subject to the original vesting schedules. No incremental expense was recognized as there was no change to the fair value of the awards as a result of the Reorganization Transactions. Accordingly, we continue to recognize the original grant date fair value of the Time-based Units over the remaining service period. The Company estimated the fair value of the Time-based Units as of the grant date based on a determination of the total fair value of the Company’s equity as of the valuation date which was then run through a hypothetical liquidation model.

We determined that the activity for the period prior to the Reorganization Transactions would not be meaningful to the users of these consolidated financial statements due to the significant nature of the Reorganization Transactions on the capital structure.

The following table sets forth the activity related to the Time-Based Units for the year ended December 31, 2022:


	Number of Time-Based Units			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		777,761		$	2.62
Granted		—			—
Vested		(371,119	)		2.58
Forfeited		(97,312	)		3.09
Outstanding at December 31, 2022		309,330		$	2.53

During the years ended December 31, 2022, December 25, 2021 and December 26, 2020 we recognized $2,277, $1,122 and $2,052, respectively, of equity-based compensation expense related to Time-based Units in selling, general, and administrative expense. Of the equity-based expense related to Time-based Units recognized during the year ended December 31, 2022, approximately $1,248 related to the acceleration of vesting on 75,000 Time-based Units in accordance with the separation agreement between the Company and our previous chief financial officer. As of December 31, 2022, there was $940 of total unrecognized compensation expense related to unvested time-based Incentive Units expected to be recognized over a weighted average period of 1.2 years. The fair value of Time-based Units that vested during the year ended December 31, 2022 was $7,240. The fair value of Time-based Units that vested during the period of August 4, 2021 to December 25, 2021 was $6,016.

2.0x Units and 2.5x Units

Prior to the consummation of the Reorganization Transactions, EWC Ventures LLC granted Incentive Units with performance-based vesting criteria that vest in one or more tranches contingent upon the achievement of certain targets, including a tranche which vested upon the achievement of 2.0x multiple on invested capital (“MOIC”) and a tranche which vested upon achievement of a 2.5x MOIC. Equity-based compensation expense was not previously recognized for these awards, based on the projected probability of achievement of the respective target(s). In connection with the Reorganization Transactions, these awards were recapitalized into a new number of EWC Ventures Units (which we refer to as the “2.0x Units” and 2.5x Units” both before and after the Reorganization Transactions). The vesting conditions were modified to include a time-based vesting condition such that the units will vest as if the units were time-based units on the initial date of grant; provided that, such units shall still fully vest upon achievement of the original performance targets, as applicable. As a result of the modification, the Company recorded equity-based compensation expense of $5,645 during the year ended December 25, 2021, which is the modification date fair value of the awards which became immediately vested. The remainder of the modification date fair value of the 2.0x Units and 2.5x Units is recognized straight line over the remaining service period. The modification date fair value was determined based on the fair value of the underlying EWC Ventures Units on the modification date, which was determined based on the initial public offering price per share of the Company’s Class A common stock.

The following table sets forth the activity related to the 2.0x and 2.5x Units for the year ended December 31, 2022:


	Number of 2.0x and 2.5x Units			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		275,031		$	17.00
Granted		—			—
Vested		(72,461	)		17.00
Forfeited		(129,991	)		17.00
Outstanding at December 31, 2022		72,579		$	17.00

During the years ended December 31, 2022 and December 25, 2021, we recognized $1,123 and $7,240 of equity-based compensation expense related to the 2.0x Units and 2.5x Units included in selling, general and administrative expense. As of December 31, 2022, there was $1,169 of total unrecognized compensation expense related to unvested 2.0x Units and unvested 2.5x Units expected to be recognized over a weighted average period of 1.6 years. The fair value of 2.0x Units and 2.5x Units that vested during the year ended December 31, 2022 was $1,603. The fair value of 2.0x Units and 2.5x Units that vested during the period of August 4, 2021 to December 25, 2021 was $1,194.

3.0x Units

Prior to the consummation of the Reorganization Transactions, EWC Ventures LLC granted Incentive Units with performance and market-based vesting criteria that would have vested upon achievement of 3.0x MOIC. In connection with the Reorganization Transactions, these awards were recapitalized into a new number of EWC Ventures Units (which we refer to as the “3.0x Units” both

before and after the Reorganization Transactions). These awards were modified such that the awards will also be eligible to vest upon the occurrence of either (i) the achievement of a 2.0x MOIC at such time as General Atlantic’s investment in the Company is no less than 35% of the fully diluted units of the Company or (ii) the first of December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 or December 31, 2023 on which a specific volume weighted average trading price of our Class A common stock is achieved. Equity-based compensation expense was not previously recognized for these awards, based on the projected probability of achievement of the target.

The modified vesting conditions described above represent market conditions. Compensation expense for performance-based awards with a market condition is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Accordingly, following the Reorganization Transactions, expense will be recognized prospectively based on the modification date fair value of the modified award. The Company used a Geometric Brownian Motion simulation formula to determine the fair value and the derived service periods of these 3.0x Units as of the modification date.

The following table sets forth the activity related to the 3.0x Units for the year ended December 31, 2022:


	Number of 3.0x Units			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		610,979		$	7.75
Granted		—			—
Vested		—			—
Forfeited		(77,272	)		7.70
Outstanding at December 31, 2022		533,707		$	7.76

During the years ended December 31, 2022 and December 25, 2021 we recognized $2,354 and $1,249 of equity-based compensation expense related to the 3.0x Units in selling, general, and administrative expense. As of December 31, 2022, total unrecognized equity-based compensation related to the 3.0x Units was $608, which is expected to be recognized over a weighted-average period of approximately 0.3 years.

Summary of Equity-Based Compensation Expense

The Company recognized equity-based compensation expense in the following amounts within in selling, general and administrative expense on the Consolidated Statements of Operations:


	For the Years Ended
	December 31, 2022		December 25, 2021		December 26, 2020
Class A Common Stock Options	$	440	$	305	$	—
Restricted Stock Units		2,839		1,219		—
Time-based Units		2,277		1,122		2,052
2.0x and 2.5x Units		1,123		7,240		—
3.0x Units		2,354		1,249		—
Total	$	9,033	$	11,135	$	2,052

During the year ended December 31, 2022 we recognized $595 of income tax benefit related to our equity-based compensation. There was no income tax benefit recognized for the period of August 4, 2021 to December 25, 2021 (the period following the Reorganization Transactions).

Employee Retirement Plan

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Employee Retirement Plan

17. Employee retirement plan

The Company offers its employees the opportunity to participate in a defined contribution retirement plan, where eligible employees may contribute a percentage of their annual compensation subject to limitations set by the Internal Revenue Code. For the years ended December 31, 2022, December 25, 2021 and December 26, 2020, the employer match expense recognized under this plan was $418, $349 and $301, respectively, of which, $391, $330 and $291, respectively, is included in selling, general and administrative expenses and $27, $19 and $10, respectively, is included in cost of revenue on the Consolidated Statements of Operations.

Related Party Transactions

12 Months Ended

Dec. 31, 2022

Related Party Transactions

18. Related party transactions

The Company paid fees to certain members for consulting services provided to the Company. Related party consulting fees of $117 and $200 for the years ended December 25, 2021 and December 26, 2020, respectively, are included in selling, general, and

administrative expenses in the Consolidated Statements of Operations. The term of the consulting services agreement ended in August 2021. During the year ended December 31, 2022 there were no consulting fees paid to related parties.

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

19. Income Taxes

EWC Ventures is a limited liability company that is treated as a partnership for U.S. federal income tax purposes and for most applicable state and local income tax purposes. As a partnership, EWC Ventures is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by EWC Ventures is passed through to and included in the taxable income or loss of its members on a pro rata basis, subject to applicable tax regulations. Because EWC Ventures is our financial reporting predecessor and not subject to entity level income tax, no current or deferred income taxes were recorded in fiscal year 2020 and the period prior to August 4, 2021.

We were appointed the sole managing member of EWC Ventures in connection with the Reorganization Transactions on August 4, 2021. Following the Reorganization Transactions the Company is now subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to its allocable share of any taxable income or loss of EWC Ventures. The remaining share of EWC Ventures income or loss remains non-taxable to the Company and is not reflected in current or deferred income taxes.

The components of income tax expense for the years ended December 31, 2022 and December 25, 2021 were as follows:


	For the Years Ended
	December 31, 2022			December 25, 2021
Current:
Federal	$	—		$	—
State		523			114
		523			114
Deferred:
Federal		(45,423	)		—
State		(8,291	)		—
		(53,714	)		—

Income Tax Expense	$	(53,191	)	$	114

A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below:


	For the Years Ended
	December 31, 2022			December 25, 2021
Statutory federal income tax rate		21.0	%		21.0	%
State income taxes, net		19.9	%		2.2	%
Pre-IPO period not subject to income tax		—			(53.1	)%
Income attributable to noncontrolling interest		3.4	%		15.1	%
Nondeductible executive compensation		(0.2	)%		0.8	%
Tax receivable agreement		(10.9	)%		—
Investment in EWC Ventures		(11.7	)%		47.4	%
Valuation allowance		112.2	%		(30.6	)%
Other		0.7	%		—
		134.4	%		2.8	%

Deferred tax assets and liabilities, were as follows as of December 31, 2022 and December 25, 2021:


	December 31, 2022			December 25, 2021
Deferred tax assets
Net operating losses	$	15,592		$	7,396
Investment in EWC Ventures		55,804			30,750
Tax receivable agreement		33,205			9,540
Excess interest expense		995			—
Equity based compensation		562			349
Other		36			34
Total deferred tax assets before valuation allowance		106,194			48,069
Valuation allowance		—			(48,069	)
Total deferred tax assets after valuation allowance		106,194			—
Deferred tax liabilities
Other		(7	)
Total deferred tax liabilities		(7	)		—
Net deferred tax asset	$	106,187		$	—

Valuation Allowance

As of December 31, 2022, we concluded that the positive evidence regarding our ability to realize our deferred tax assets outweighed the negative evidence, and the Company released the valuation allowance against its net deferred tax assets. The Company now has a three-year history of cumulative pre-tax income, adjusted for permanent differences, which we believe represents significant positive evidence in evaluating whether our deferred tax assets are realizable. Given this cumulative income and our accurate forecast history since the IPO we believe we can rely on projections of future taxable income exclusive of reversing taxable temporary differences to support the realization of our deferred tax assets.

The change in our valuation allowance against our deferred tax assets for the years ended December 31, 2022 and December 25, 2021 was as follows:


	For the Years Ended
	December 31, 2022			December 25, 2021
Beginning balance	$	(48,069	)	$	—
Recorded to additional-paid-in-capital		—			(50,373	)
Recorded to other comprehensive income		—			32
Recorded to income tax expense		48,069			2,272
Ending balance	$	—		$	(48,069	)

Net Operating Loss Carryforwards

As of December 31, 2022, the Company has $66,546 of gross federal net operating loss carryforwards and $29,765 of gross state net operating loss carryforwards. The federal and certain state net operating losses have an indefinite carryforward period and are subject to an annual limitation of 80% of current year taxable income. The remaining net operating losses expire at various dates through 2038.

Uncertain Tax Positions

As of December 31, 2022 the Company does not have any unrecognized tax benefits. The Company is subject to audit examinations at the federal and state levels by the tax authorities for all tax years since formation of the Company.

Tax Receivable Agreement

As of December 31, 2022, future payments under the TRA are expected to be $172,160. Payments made under the TRA represent payments that otherwise would have been made to taxing authorities in the absence of attributes obtained by us as a result of exchanges by our pre-IPO members. Such amounts will be paid only when a cash tax savings is realized as a result of attributes subject to the TRA. That is, payments under the TRA are only expected to be made in periods following the filing of a tax return in which we are able to utilize certain tax benefits to reduce our cash taxes paid to a taxing authority. The impact of any changes in the projected obligations under the TRA as a result of changes in the geographic mix of the Company’s earnings, changes in tax

legislation and tax rates or other factors that may impact the Company’s tax savings will be reflected in other expense on the Consolidated Statement of Operations in the period in which the change occurs. As discussed above, the valuation allowance against the Company's deferred tax assets was released. As such, the full amount of the TRA liability has been recognized on our Consolidated Balance Sheets as of December 31, 2022. We recognized charges of $56,228 and $195 in other expense on our Consolidated Statement of Operations related to remeasurements of the TRA during the years ended December 31, 2022 and December 25, 2021, respectively. During the year ended December 31, 2022 we paid $912 to our pre-IPO members in accordance with the TRA.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section S99
-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 2
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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Net Income (Loss) per Share

Net Income (Loss) per Share

12 Months Ended

Dec. 31, 2022

20. Net income (loss) per share

Basic net income (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Class A common shareholders for the periods subsequent to the Reorganization Transactions by the weighted average number of shares of Class A common stock outstanding for the same period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period in which the shares were outstanding. Diluted net income (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Class A common shareholders by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

Prior to the Reorganization Transactions, the EWC Ventures capital structure included Class A, Class B, Class C, and Class D Units. We determined that the presentation of net income (loss) per unit for the period prior to the Reorganization Transactions would not be meaningful to the users of these consolidated financial statements due to the significant nature of the Reorganization Transactions on the capital structure. Therefore, net income (loss) per unit information has not been presented for periods prior to the Reorganization Transactions.

The following table sets forth the computation of basic net income (loss) per share of Class A common stock for the year ended December 31, 2022 and the period from August 4, 2021 to December 25, 2021, which represents the period subsequent to the Reorganization Transactions:


	Year Ended		Period of August 4-
	December 31, 2022		December 25, 2021
(in thousands, except for share and per share amounts)
Net income (loss)	$	13,613	$	(6,360	)
Less: net income (loss) attributable to noncontrolling interests		6,050		(2,857	)
Net income (loss) applicable to Class A common shareholders	$	7,563	$	(3,503	)
Basic weighted average outstanding shares
Class A Common Stock		40,010,456		32,234,507
Basic net income (loss) per share applicable to shareholders:
Class A Common Stock	$	0.19	$	(0.11	)

The following table sets forth the computation of diluted net income (loss) per share of Class A common stock for the year ended December 31, 2022 and the period from August 4, 2021 to December 25, 2021, which represents the period subsequent to the Reorganization Transactions:


	Year Ended		Period of August 4-
	December 31, 2022		December 25, 2021
(in thousands, except for share and per share amounts)
Net income (loss)	$	13,613	$	(6,360	)
Less: net income (loss) attributable to noncontrolling interests		6,037		(2,857	)
Net income (loss) applicable to Class A common shareholders	$	7,576	$	(3,503	)
Diluted weighted average outstanding shares
Basic weighted average outstanding shares - Class A Common Stock		40,010,456		32,234,507
Effect of dilutive securities:
RSUs		124,607		—
Options		15,988		—
Diluted weighted average outstanding shares - Class A Common Stock		40,151,051		32,234,507
Diluted net income (loss) per share applicable to common shareholders:
Class A Common Stock	$	0.19	$	(0.11	)

Shares of Class B common stock do not share in the earnings or losses attributable to the Company and are therefore not participating securities. As such, separate presentation of basic and diluted net loss per share of Class B common stock under the two-class method has not been presented. Shares of Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related EWC Ventures Units, are exchangeable into shares of Class

A common stock on a one-for-one basis. 18,175,652 and 26,700,477 shares of Class B common stock outstanding as of December 31, 2022 and December 25, 2021, respectively, were determined to be anti-dilutive, and have therefore been excluded from the computation of diluted net income (loss) per share of Class A common stock.

In addition, for the year ended December 31, 2021, 301,464 stock options and 455,971 restricted stock units were excluded from the computation of diluted net income (loss) per share of Class A common stock, because the effect would have been anti-dilutive as we recorded a net loss for the period.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Implications of being an emerging growth company

(bb) Implications of being an Emerging Growth Company

Basis of Presentation and Consolidation

(a) Basis of presentation and consolidation

Use of estimates

(b) Use of estimates

Concentrations

Segment Information

(d) Segment information

Revenue Recognition

(e) Revenue recognition

Product sales

Royalty fees

Marketing fees

Other revenue

Other revenue primarily consists of service revenue and franchise fees, as well as technology fees, annual brand conference revenues, and training.

Technology fees, annual brand conference revenues, and training are recognized as the related services are delivered and are not material to the overall business.

Cost of Revenue

(f) Cost of revenue

Selling, General and Administrative

(g) Selling, general and administrative

Equity-based Compensation

(h) Equity-based Compensation

Advertising expenses

(i) Advertising expenses

Income Taxes

(j) Income Taxes

Tax Receivable Agreement

(k) Tax Receivable Agreement

Noncontrolling Interests

(l) Noncontrolling Interests

Net Income (Loss) Per Share

(m) Net Income (Loss) Per Share

Cash and Cash Equivalents

(n) Cash and cash equivalents

Restricted Cash

(o) Restricted Cash

Accounts Receivable

(p) Accounts receivable

Inventory

(q) Inventory

Property and Equipment, net

(r) Property and equipment, net

Estimated useful lives for Property and equipment are as follows:


Computer and other equipment		3-5 years
Computer software		4-7 years
Furniture and fixtures		3-7 years
Leasehold improvements		Lesser of the estimated useful life or the remaining lease term.

Impairment or Disposal of Long-lived Assets

(s) Impairment or disposal of long-lived assets

Leases

(t) Leases

Goodwill and Indefinite-lived Intangible Assets

(u) Goodwill and indefinite-lived intangible assets

Fair Value Measurements

(v) Fair value measurements

•

(Level 1) Quoted prices in active markets for identical assets or liabilities.

•

Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Financial Instruments

(w) Financial instruments

Derivative Instruments and Hedging Activities

(x) Derivative instruments and hedging activities

Deferred Financing Costs

(y) Deferred financing costs

Accumulated other comprehensive income (loss)

(z) Accumulated other comprehensive income (loss)

Class A Founders' Units and Class D Units Subject to Possible Redemption

(aa) Class A Founders’ Units and Class D Units subject to possible redemption

Recently Adopted Accounting Pronouncements

(cc) Recently adopted accounting pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

(dd) Recently issued accounting pronouncements not yet adopted

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Estimated Useful Lives for Property and Equipment

Estimated useful lives for Property and equipment are as follows:


Computer and other equipment		3-5 years
Computer software		4-7 years
Furniture and fixtures		3-7 years
Leasehold improvements		Lesser of the estimated useful life or the remaining lease term.

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of fair value measurements

Fair value measurements are summarized below:


	Fair Market Value			Quoted prices in active markets for identical assets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Interest rate cap
December 31, 2022	$	—		$	—	$	—		$	—
December 25, 2021	$	(242	)	$	—	$	(242	)	$	—

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following:


	December 31, 2022		December 25, 2021
Prepaid inventory	$	—	$	334
Prepaid insurance		1,966		2,308
Prepaid rent		192		—
Prepaid technology		1,656		1,134
Prepaid marketing		844		623
Prepaid commissions		410		425
Prepaid other & other current assets		506		1,103
Total	$	5,574	$	5,927

Inventory (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Summary of Changes in Inventory Obsolescence Reserve

A summary of changes in the inventory obsolescence reserve for fiscal years 2022 and 2021 is as follows:


	December 31, 2022			December 25, 2021
Balance, beginning of year	$	5,055		$	6,599
Charged to costs and expenses		(66	)		317
Write-offs of reserved inventory		(4,802	)		(1,861	)
Balance, end of year	$	187		$	5,055

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, Net

Property and equipment consisted of the following:


	December 31, 2022			December 25, 2021
Computer and other equipment	$	678		$	583
Computer software		7,369			7,458
Furniture and fixtures		1,155			1,162
Leasehold improvements		2,653			2,433
Construction in process		68			269
Property and equipment		11,923			11,905
Less: accumulated depreciation		(9,176	)		(8,042	)
Property and equipment, net	$	2,747		$	3,863

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill and Intangible Assets

A summary of goodwill and intangible assets as of December 31, 2022 and December 25, 2021 is as follows:


	December 31, 2022
	Weighted Average Remaining Useful Life (Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Franchisee relationships		5.73	$	114,594	$	(48,889	)	$	65,705
Reacquired rights		7.31		76,545		(23,034	)		53,511
				191,139		(71,923	)		119,216
Indefinite-lived intangible:
Trade name	N/A			63,814		—			63,814
Total intangible assets			$	254,953	$	(71,923	)	$	183,030
Goodwill			$	328,551	$	—		$	328,551


	December 25, 2021
	Weighted Average Remaining Useful Life (Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Franchisee relationships		6.75	$	114,594	$	(37,294	)	$	77,300
Reacquired rights		8.31		76,545		(15,673	)		60,872
Favorable lease assets		0.19		170		(161	)		9
				191,309		(53,128	)		138,181
Indefinite-lived intangible:
Trade name	N/A			63,814		—			63,814
Total intangible assets			$	255,123	$	(53,128	)	$	201,995
Goodwill			$	328,551	$	—		$	328,551

Schedule of Future Amortization Expenses of Intangible Assets

Future expected amortization expense of the Company’s intangible assets as of December 31, 2022 is as follows:


Fiscal Years Ending	Franchisee Relationships		Reacquired Rights
2023	$	11,595	$	7,362
2024		11,595		7,362
2025		11,595		7,362
2026		11,595		7,362
2027		11,595		7,362
Thereafter		7,730		16,701
Total	$	65,705	$	53,511

Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:


	December 31, 2022		December 25, 2021
Accounts payable	$	5,874	$	7,684
Accrued inventory		2,259		2,665
Accrued compensation		4,283		5,401
Accrued taxes and penalties		1,181		1,432
Accrued lease termination costs		—		588
Accrued technology and subscription fees		26		196
Accrued interest		933		1,477
Accrued professional fees		890		2,090
Accrued marketing		310		489
Accrued dividend equivalents		1,777		—
Other accrued liabilities		1,014		1,133
Total Accounts payable and accrued liabilities	$	18,547	$	23,155

Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Debt

Long-term debt consists of the following:


	December 31, 2022			December 25, 2021
Class A-2 Notes	$	398,000		$	—
2026 Term Loan		—			180,000
Less: current portion		(4,000	)		(5,625	)
Total long-term debt		394,000			174,375
Less: unamortized debt discount and deferred financing costs		(23,065	)		(1,768	)
Total long-term debt, net	$	370,935		$	172,607

Summary of Annual Future Principal Payments Due on Long-term Debt

Annual future principal payments due on long-term debt as of December 31, 2022 are as follows:


Fiscal Years Ending
2023	$	4,000
2024		4,000
2025		4,000
2026		4,000
2027		382,000
Thereafter		—
Total long-term debt principal	$	398,000

Derivative Instruments and Hedging Activities (Tables) - SubsidiariesMember

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Schedule of Interest Rate Derivatives

Our cash flow hedge position related to the interest rate cap derivative instrument is as follows:


	Balance Sheet Classification	December 31, 2022		December 25, 2021
Derivatives designated as hedging instruments:
Interest rate cap, current portion	Other current liabilities	$	—	$	(182	)
Interest rate cap, non-current portion	Other long-term liabilities		—		(60	)
Total derivative liabilities designated as hedging instruments		$	—	$	(242	)

Schedule of Net Unrealized Gain Recognized in Other Comprehensive Income (“OCI”)

The table below presents the net unrealized gain (loss) recognized in other comprehensive income (loss) (“OCI”) resulting from fair value adjustments of hedging instruments:


	Net Unrealized Gain Recognized in OCI
	Year Ended		Year Ended		Year Ended
	December 31, 2022		December 25, 2021		December 26, 2020
Derivatives designated as hedging instruments:
Interest rate cap	$	—	$	286	$	208
Total	$	—	$	286	$	208

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Components of Lease Cost

Total lease costs consisted of the following:


	Year Ended December 31, 2022
Operating lease costs	$	2,052
Variable lease costs		729
Sublease income		(614	)
Total lease costs	$	2,167

Schedule of Maturities of Lease Liabilities

Future maturities of operating lease liabilities as of December 31, 2022 were as follows:


Fiscal Years Ending
2023	$	1,524
2024		1,346
2025		1,232
2026		880
2027		863
Thereafter		290
Total lease payments		6,135
Less: amount representing interest		(596	)
Present value of lease liabilities		5,539
Less: current portion		(1,312	)
Operating lease liabilities, net of current portion	$	4,227

Schedule of Future maturities of operating lease obligations

Future minimum rental payments as of December 25, 2021 were as follows:


Fiscal Years Ending
2022	$	2,098
2023		1,524
2024		1,346
2025		1,232
2026		880
Thereafter		1,152
Total	$	8,232

Schedule of Weighted Average Lease Term and Discount Rate of Operating Leases

The weighted average lease term and discount rate of our operating leases as of December 31, 2022 were as follows:



Weighted average remaining lease term (years)	4.6
Weighted average discount rate	4.4	%

Schedule of Payment for Measurement of Lease Liabilities

Cash paid for amounts included in the measurement of lease liabilities was as follows:


	Year Ended December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,331

Noncontrolling interest (Tables) - E W C Ventures L L C And Subsidiaries [Member]

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest [Line Items]

Summary of ownership of EWC Ventures LLC

The following table summarizes the ownership of EWC Ventures as of December 31, 2022:


	December 31, 2022
	Units Owned		Ownership Percentage
European Wax Center, Inc.		44,561,685		72.1	%
Noncontrolling Interest		17,260,035		27.9	%
Total		61,821,720		100.0	%

Summary of ownership interests in EWC Ventures LLC on equity

The following table presents the effect of changes in the Company’s ownership interest in EWC Ventures on the Company’s equity for the periods indicated:


	Year Ended December 31, 2022		Period of August 4-December 25, 2021
Net income (loss) attributable to European Wax Center, Inc.	$	7,277	$	(3,415	)
Transfers from noncontrolling interests:
Increase in additional-paid-in-capital as a result in ownership changes in EWC Ventures		21,412		34,208
Net increase in equity of European Wax Center, Inc. due to equity interest transactions with noncontrolling interests	$	28,689	$	30,793

Revenue from Contract with Customers (Tables)

12 Months Ended

Dec. 31, 2022

Disaggregation Of Revenue [Line Items]

Summary of Balances in Deferred Revenue

The summary set forth below represents the balances in deferred revenue as of December 31, 2022 and December 25, 2021:


	December 31, 2022		December 25, 2021
Franchise fees	$	8,167	$	7,911
Service revenue		2,818		1,880
Total deferred revenue		10,985		9,791
Long-term portion of deferred revenue		6,901		6,787
Current portion of deferred revenue	$	4,084	$	3,004

Disaggregation Of Revenue [Line Items]

Schedule of Changes in Contract Liabilities

The following table reflects the change in contract liabilities for the periods indicated:


	Contract liabilities
Balance at December 28, 2019	$	9,257
Revenue recognized that was included in the contract liability at the beginning of the year		(2,461	)
Increase, excluding amounts recognized as revenue during the period		2,083
Balance at December 26, 2020		8,879
Revenue recognized that was included in the contract liability at the beginning of the year		(2,599	)
Increase, excluding amounts recognized as revenue during the period		3,511
Balance at December 25, 2021		9,791
Revenue recognized that was included in the contract liability at the beginning of the year		(2,289	)
Increase, excluding amounts recognized as revenue during the period		3,483
Balance at December 31, 2022	$	10,985

Schedule of Revenue Expected to be Recognized in Future Related to Performance Obligations


Contract liabilities to be recognized in:	Amount
2023	$	2,819
2024		1,265
2025		1,202
2026		1,131
2027		1,021
Thereafter		3,547
Total	$	10,985

Equity Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of summary of option activity

A summary of activity related to the options is as follows:


	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2021		301,464		$	17.00
Granted		—			—
Exercised		—			—
Expired		—			—
Forfeited		(88,286	)		17.00
Outstanding at December 31, 2022		213,178		$	17.00		8.6	$	—
Exercisable at December 31, 2022		—			—		—		—

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]


	For the Year Ended December 25, 2021
Expected dividend yield		0.0	%
Expected volatility		43.8	%
Risk-free rate		0.9	%
Expected term (in years)		6.5

Summary of restricted stock awards activity

A summary of activity related to the RSUs is as follows:


	Number of RSUs			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		455,971		$	17.41
Granted		69,266			21.42
Vested		(157,349	)		17.33
Forfeited		(82,429	)		18.30
Outstanding at December 31, 2022		285,459		$	18.24

Schedule Of Stock Based Compensation Expenses

The Company recognized equity-based compensation expense in the following amounts within in selling, general and administrative expense on the Consolidated Statements of Operations:


	For the Years Ended
	December 31, 2022		December 25, 2021		December 26, 2020
Class A Common Stock Options	$	440	$	305	$	—
Restricted Stock Units		2,839		1,219		—
Time-based Units		2,277		1,122		2,052
2.0x and 2.5x Units		1,123		7,240		—
3.0x Units		2,354		1,249		—
Total	$	9,033	$	11,135	$	2,052

Time Based Units [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Activity

The following table sets forth the activity related to the Time-Based Units for the year ended December 31, 2022:


	Number of Time-Based Units			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		777,761		$	2.62
Granted		—			—
Vested		(371,119	)		2.58
Forfeited		(97,312	)		3.09
Outstanding at December 31, 2022		309,330		$	2.53

Two Point Zero And Two Point Five Units [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Activity

The following table sets forth the activity related to the 2.0x and 2.5x Units for the year ended December 31, 2022:


	Number of 2.0x and 2.5x Units			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		275,031		$	17.00
Granted		—			—
Vested		(72,461	)		17.00
Forfeited		(129,991	)		17.00
Outstanding at December 31, 2022		72,579		$	17.00

Three Point Zero Units [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Activity

The following table sets forth the activity related to the 3.0x Units for the year ended December 31, 2022:


	Number of 3.0x Units			Weighted Average Grant Date Fair Value
Outstanding at December 25, 2021		610,979		$	7.75
Granted		—			—
Vested		—			—
Forfeited		(77,272	)		7.70
Outstanding at December 31, 2022		533,707		$	7.76

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Components of Income Tax Expense

The components of income tax expense for the years ended December 31, 2022 and December 25, 2021 were as follows:


	For the Years Ended
	December 31, 2022			December 25, 2021
Current:
Federal	$	—		$	—
State		523			114
		523			114
Deferred:
Federal		(45,423	)		—
State		(8,291	)		—
		(53,714	)		—

Income Tax Expense	$	(53,191	)	$	114

Schedule of Reconciliation of Statutory Federal Income Tax Rate to Effective Rate

A reconciliation of the statutory federal income tax rate to our effective rate for continuing operations is provided below:


	For the Years Ended
	December 31, 2022			December 25, 2021
Statutory federal income tax rate		21.0	%		21.0	%
State income taxes, net		19.9	%		2.2	%
Pre-IPO period not subject to income tax		—			(53.1	)%
Income attributable to noncontrolling interest		3.4	%		15.1	%
Nondeductible executive compensation		(0.2	)%		0.8	%
Tax receivable agreement		(10.9	)%		—
Investment in EWC Ventures		(11.7	)%		47.4	%
Valuation allowance		112.2	%		(30.6	)%
Other		0.7	%		—
		134.4	%		2.8	%

Summary of Temporary differences to Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities, were as follows as of December 31, 2022 and December 25, 2021:


	December 31, 2022			December 25, 2021
Deferred tax assets
Net operating losses	$	15,592		$	7,396
Investment in EWC Ventures		55,804			30,750
Tax receivable agreement		33,205			9,540
Excess interest expense		995			—
Equity based compensation		562			349
Other		36			34
Total deferred tax assets before valuation allowance		106,194			48,069
Valuation allowance		—			(48,069	)
Total deferred tax assets after valuation allowance		106,194			—
Deferred tax liabilities
Other		(7	)
Total deferred tax liabilities		(7	)		—
Net deferred tax asset	$	106,187		$	—

Summary of change in valuation allowance against our deferred tax assets

The change in our valuation allowance against our deferred tax assets for the years ended December 31, 2022 and December 25, 2021 was as follows:


	For the Years Ended
	December 31, 2022			December 25, 2021
Beginning balance	$	(48,069	)	$	—
Recorded to additional-paid-in-capital		—			(50,373	)
Recorded to other comprehensive income		—			32
Recorded to income tax expense		48,069			2,272
Ending balance	$	—		$	(48,069	)

Net Income (Loss) per Share (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share


	Year Ended		Period of August 4-
	December 31, 2022		December 25, 2021
(in thousands, except for share and per share amounts)
Net income (loss)	$	13,613	$	(6,360	)
Less: net income (loss) attributable to noncontrolling interests		6,050		(2,857	)
Net income (loss) applicable to Class A common shareholders	$	7,563	$	(3,503	)
Basic weighted average outstanding shares
Class A Common Stock		40,010,456		32,234,507
Basic net income (loss) per share applicable to shareholders:
Class A Common Stock	$	0.19	$	(0.11	)


	Year Ended		Period of August 4-
	December 31, 2022		December 25, 2021
(in thousands, except for share and per share amounts)
Net income (loss)	$	13,613	$	(6,360	)
Less: net income (loss) attributable to noncontrolling interests		6,037		(2,857	)
Net income (loss) applicable to Class A common shareholders	$	7,576	$	(3,503	)
Diluted weighted average outstanding shares
Basic weighted average outstanding shares - Class A Common Stock		40,010,456		32,234,507
Effect of dilutive securities:
RSUs		124,607		—
Options		15,988		—
Diluted weighted average outstanding shares - Class A Common Stock		40,151,051		32,234,507
Diluted net income (loss) per share applicable to common shareholders:
Class A Common Stock	$	0.19	$	(0.11	)

Nature of business and organization - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Aug. 09, 2021	Aug. 04, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 25, 2021	Dec. 26, 2020
Nature of business and organization
Payment of Class A common stock offering costs			$ 870		$ 0	$ 0
Refinancing fees and expenses					$ 6,869
2026 Term Loan [Member]
Nature of business and organization
Term loan		$ 180,000
2026 Revolving Credit Facility [Member]
Nature of business and organization
Line of Credit Facility, Maximum Borrowing Capacity		$ 40,000
Class A Common Stock [Member]
Nature of business and organization
Shares issued, price per share		$ 17.00
Common Stock, Shares, Issued		9,829,204
Proceeds from Issuance of Common Stock	$ 155,400
Class A Common Stock [Member] \| Blocker Companies [Member]
Nature of business and organization
Existing Equity Interests Acquired		21,540,982
Class B Common Stock [Member]
Nature of business and organization
Venture units purchased					3,191,946
Payment in exchange for units	50,465
SubsidiariesMember
Nature of business and organization
Payments of Capital Distribution					$ 5,823
Exchange of Class B Common Stock and EWC Ventures Units for Class A Common Stock			$ 8,697		$ 6,512	1,969
Receivables due from related parties		$ 689
Venture units purchased					6,637,258
Preferred Stock, Shares Authorized		100,000,000	100,000,000		100,000,000
Payment in exchange for units	104,935
Payment of Class A common stock offering costs					$ 9,930	$ 91
SubsidiariesMember \| 2026 Revolving Credit Facility [Member]
Nature of business and organization
Repayments of long-term lines of credit					$ 268,732
SubsidiariesMember \| Preferred Stock [Member]
Nature of business and organization
Common Stock, Par Value		$ 0.00001
Preferred Stock, Shares Authorized			100,000,000
SubsidiariesMember \| Class A Common Stock [Member]
Nature of business and organization
Common Stock, Shares Authorized		600,000,000	600,000,000		600,000,000
Common Stock, Par Value		$ 0.00001	$ 0.00001		$ 0.00001
Common Stock, Shares, Issued		1,590,000	45,277,325		36,932,423
Common stock sold by selling shareholders		2,360,796
SubsidiariesMember \| Class B Common Stock [Member]
Nature of business and organization
Common Stock, Shares Authorized		60,000,000	60,000,000		60,000,000
Common Stock, Par Value		$ 0.00001	$ 0.00001		$ 0.00001
Venture units purchased					1,176,468
Common shares purchased by LLC members				36,740,956
Common Stock, Shares, Issued			18,175,652		26,700,477
Payment in exchange for units	$ 20,000

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) OperatingSegment	Dec. 25, 2021 USD ($)	Dec. 26, 2020 USD ($)	Dec. 26, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Royalty fee	6.00%
Percentage of marketing fee	3.00%
Franchise general agreement terms	10 years
Franchise agreement extension period	10 years
Cash and cash equivalents maturity terms	Cash and cash equivalents are comprised of cash on hand, demand deposits with financial institutions, and short-term highly liquid investments with original maturities of 90 days or less.
Number of reporting units \| OperatingSegment	1
Impairment of goodwill	$ 0	$ 0	$ 0
Impairment of trade names	0	0	0
Reclassifications of other comprehensive income or loss to earnings		0	$ 0
Operating lease liabilities	5,539,000
ASU 2016 - 02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets				$ 6,799,000
Operating lease liabilities				$ 7,630,000
SubsidiariesMember
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	4,899,000	$ 0
Class A-2 Notes \| SubsidiariesMember
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt Instrument, Fair Value Disclosure	$ 356,648,000

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives for Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Computer and Other Equipment \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, Useful life	5 years
Computer and Other Equipment \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, Useful life	3 years
Computer Software \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, Useful life	7 years
Computer Software \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, Useful life	4 years
Furniture and Fixtures \| Maximum [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, Useful life	7 years
Furniture and Fixtures \| Minimum [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, Useful life	3 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, Estimated useful lives	Lesser of the estimated useful life or the remaining lease term.

Fair Value Measurements (Details) - SubsidiariesMember - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021
Fair Value Option Quantitative Disclosures [Line Items]
Interest rate cap	$ 0	$ (242)
Quoted prices in active markets for identical assets (Level 1)
Fair Value Option Quantitative Disclosures [Line Items]
Interest rate cap	0	0
Significant observable inputs (Level 2)
Fair Value Option Quantitative Disclosures [Line Items]
Interest rate cap	0	(242)
Significant unobservable inputs (Level 3)
Fair Value Option Quantitative Disclosures [Line Items]
Interest rate cap	$ 0	$ 0

Prepaid Expenses and Other Current Assets (Details) - SubsidiariesMember - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021
Prepaid Expenses And Other Current Assets Details [Line Items]
Prepaid inventory	$ 0	$ 334
Prepaid insurance	1,966	2,308
Prepaid rent	192	0
Prepaid technology	1,656	1,134
Prepaid marketing	844	623
Prepaid commissions	410	425
Prepaid other & other current assets	506	1,103
Total	$ 5,574	$ 5,927

Inventory - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Inventory Disclosure [Abstract]
Inventory, net	$ 187	$ 5,055	$ 6,599

Inventory - Summary of Changes in Inventory Obsolescence Reserve (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021
Inventory Disclosure [Abstract]
Balance, beginning of year	$ 5,055	$ 6,599
Charged to costs and expenses	(66)	317
Write-offs of reserved inventory	(4,802)	(1,861)
Balance, end of year	$ 187	$ 5,055

Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021
Property Plant And Equipment [Line Items]
Property and equipment	$ 11,923	$ 11,905
Less: accumulated depreciation	(9,176)	(8,042)
Property and equipment, net	2,747	3,863
Computer and Other Equipment
Property Plant And Equipment [Line Items]
Property and equipment	678	583
Computer Software
Property Plant And Equipment [Line Items]
Property and equipment	7,369	7,458
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment	1,155	1,162
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment	2,653	2,433
Construction in Process
Property Plant And Equipment [Line Items]
Property and equipment	$ 68	$ 269

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Property and Equipment
Property Plant And Equipment [Line Items]
Depreciation and amortization expense	$ 1,265	$ 1,489	$ 1,649

Goodwill and Intangible Assets Net - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Remaining Useful Life (Years)	10 years
Gross Carrying Value	$ 254,953	$ 255,123
Gross Carrying Value	328,551	328,551
Accumulated Amortization	(71,923)	(53,128)
Accumulated Amortization	0	0
Intangible assets, net	183,030	201,995
Net Carrying Value	328,551	328,551
Finite-Lived Intangible Assets
Indefinite Lived Intangible Assets By Major Class [Line Items]
Gross Carrying Value	191,139	191,309
Accumulated Amortization	(71,923)	(53,128)
Net Carrying Value	$ 119,216	$ 138,181
Franchisee Relationships [Member] \| Finite-Lived Intangible Assets
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Remaining Useful Life (Years)	5 years 8 months 23 days	6 years 9 months
Gross Carrying Value	$ 114,594	$ 114,594
Accumulated Amortization	(48,889)	(37,294)
Net Carrying Value	$ 65,705	$ 77,300
Reacquired Rights [Member] \| Finite-Lived Intangible Assets
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Remaining Useful Life (Years)	7 years 3 months 21 days	8 years 3 months 21 days
Gross Carrying Value	$ 76,545	$ 76,545
Accumulated Amortization	(23,034)	(15,673)
Net Carrying Value	53,511	$ 60,872
Favorable Lease Assets [Member] \| Finite-Lived Intangible Assets
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Remaining Useful Life (Years)		2 months 8 days
Gross Carrying Value		$ 170
Accumulated Amortization		(161)
Net Carrying Value		9
Trade Name \| Indefinite-lived Intangible Assets
Indefinite Lived Intangible Assets By Major Class [Line Items]
Gross Carrying Value	63,814	63,814
Accumulated Amortization	0	0
Net Carrying Value	$ 63,814	$ 63,814

Goodwill and Intangible Assets Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Remaining Useful Life (Years)	10 years
Reacquired Rights [Member]
Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization of Intangible Assets	$ 7,362	$ 7,368	$ 6,457
Franchisee Relationships [Member]
Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization of Intangible Assets	$ 11,595	11,424	11,428
Additional Agreements Term
Indefinite Lived Intangible Assets By Major Class [Line Items]
Weighted Average Remaining Useful Life (Years)	10 years
European Wax Center, Inc. and Subsidiaries
Indefinite Lived Intangible Assets By Major Class [Line Items]
Reacquisition costs		$ 7,644	$ 32,791

Goodwill and Intangible Assets Net - Schedule of Future Expected Amortization Expense of Intangible Assets (Details) - Subsidiaries [Member] $ in Thousands	Dec. 31, 2022 USD ($)
Franchisee Relationships [Member]
Finite Lived Intangible Assets [Line Items]
2023	$ 11,595
2024	11,595
2025	11,595
2026	11,595
2027	11,595
Thereafter	7,730
Total	65,705
Reacquired Rights [Member]
Finite Lived Intangible Assets [Line Items]
2023	7,362
2024	7,362
2025	7,362
2026	7,362
2027	7,362
Thereafter	16,701
Total	$ 53,511

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021
Payables And Accruals [Line Items]
Accrued dividend equivalents	$ 1,777
SubsidiariesMember
Payables And Accruals [Line Items]
Accounts payable	5,874	$ 7,684
Accrued inventory	2,259	2,665
Accrued compensation	4,283	5,401
Accrued taxes and penalties	1,181	1,432
Accrued lease termination costs	0	588
Accrued technology and subscription fees	26	196
Accrued interest	933	1,477
Accrued professional fees	890	2,090
Accrued marketing	310	489
Accrued dividend equivalents	1,777	0
Other accrued liabilities	1,014	1,133
Total Accounts payable and accrued liabilities	$ 18,547	$ 23,155

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Apr. 06, 2022	Dec. 25, 2021
Debt Instrument [Line Items]
Total long-term debt principal	$ 398,000
European Wax Center, Inc. and Subsidiaries
Debt Instrument [Line Items]
Less: current portion	(4,000)		$ (5,625)
Total long-term debt principal	394,000		174,375
Less: unamortized debt discount and deferred financing costs	(23,065)		(1,768)
Total long-term debt, net	370,935		172,607
Class A-2 Notes [Member]
Debt Instrument [Line Items]
Term loan		$ 400,000
Class A-2 Notes [Member] \| European Wax Center, Inc. and Subsidiaries
Debt Instrument [Line Items]
Term loan	398,000		0
2026 Term Loan \| European Wax Center, Inc. and Subsidiaries
Debt Instrument [Line Items]
Term loan	$ 0		$ 180,000

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Long-Term Debt - Additional Information (Details) $ in Thousands		1 Months Ended	12 Months Ended
	Apr. 06, 2022 USD ($) OperatingSegment	Mar. 31, 2025	Dec. 31, 2022 USD ($)	Dec. 25, 2021 USD ($)	Dec. 26, 2020 USD ($)
Debt Instrument [Line Items]
Loss on debt extinguishment			$ (1,957)	$ (6,313)	$ 0
Payments of debt extinguishment costs			$ 77	2,446	$ 0
Refinancing fees and expenses				6,869
Debt Instrument, Description			If the Master Issuer has not repaid or refinanced the Class A-2 Notes prior to their Anticipated Repayment Date, additional interest will accrue on the Class A-2 Notes equal to the greater of (A) 5.00% per annum and (B) a per annum interest rate equal to the excess, if any, by which the sum of (i) the yield to maturity (adjusted to a quarterly bond equivalent basis) on such anticipated repayment date of the United States Treasury Security having a term closest to ten (10) years plus (ii) 5.00%, plus (iii) 3.87%, exceeds the original interest rate. The Class A-2 Notes rank pari passu with the Variable Funding Notes.
Debt Instrument, Interest Rate, Increase (Decrease)			3.87%
Debt Instrument, Covenant Description			The Notes are subject to a series of financial and non-financial covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain a stated debt service coverage ratio, the sum of system-wide sales being below certain levels on certain measurement dates, certain manager termination events (including in certain cases a change of control of EWC Ventures), an event of default and the failure to repay or refinance the Notes on the applicable anticipated repayment date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective and certain judgments.
Previous Term Loan [Member]
Debt Instrument [Line Items]
Payments of debt extinguishment costs				2,446
2026 Term Loan
Debt Instrument [Line Items]
Loss on debt extinguishment			$ 1,957
Payments of debt extinguishment costs			77
Unamortized deferred financing costs			1,880
Previous Revolving Credit Facility [Member] \| Previous Term Loan [Member]
Debt Instrument [Line Items]
Loss on debt extinguishment				6,313
Unamortized deferred financing costs				3,867
Refinancing fees and expenses				$ 1,924
Advance Funding Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			5,000
Commercial Paper [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	212.50%
Class A-2 Notes [Member]
Debt Instrument [Line Items]
Long-Term Debt, Gross	$ 400,000
Fixed Rate Senior Secured Notes	5.50%
Proceeds from Issuance of Debt	$ 384,328
Debt Discount	$ 15,672
Lender and third party fees			$ 10,858
Leverage ratio			0.0500
Debt Instrument, Interest Rate, Increase (Decrease)			5.00%
Debt Instrument Interest Rate Increase Treasury Rate Component	10 years
Variable Funding Notes [Member]
Debt Instrument [Line Items]
Lender and third party fees			$ 1,561
Debt Instrument Number Of Additional Extensions \| OperatingSegment	2
Line of Credit Facility, Maximum Borrowing Capacity	$ 40,000
Variable Funding Notes [Member] \| Other Noncurrent Assets [Member]
Debt Instrument [Line Items]
Lender and third party fees			148
Variable Funding Notes [Member] \| Forecast [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Increase (Decrease)		5.00%
Class A-2 Notes And Variable Funding Notes [Member]
Debt Instrument [Line Items]
Lender and third party fees			$ 12,419
Legal Maturity [Member] \| Class A-2 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date			Mar. 31, 2052
Indenture Member \| Class A-2 Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Issuance Date			Apr. 06, 2022

Long-Term Debt - Summary of Annual Future Principal Payments Due on Long-term Debt (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Long-Term Debt, Fiscal Year Maturity [Abstract]
2023	$ 4,000
2024	4,000
2025	4,000
2026	4,000
2027	382,000
Thereafter	0
Total long-term debt principal	$ 398,000

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020	Dec. 31, 2018
Derivatives Fair Value [Line Items]
Gain Fair Value Adjustments	$ 196,000	$ 0	$ 0
Interest Rate Cap
Derivatives Fair Value [Line Items]
Gain on interest rate	138,000
Gain Fair Value Adjustments	196,000
Cash paid	$ 58,000
SubsidiariesMember
Derivatives Fair Value [Line Items]
Derivative Liability, Notional Amount				$ 175,000
SubsidiariesMember \| Interest Rate Floor \| London Interbank Offered Rate (LIBOR) [Member]
Derivatives Fair Value [Line Items]
Derivative, Variable Interest Rate				4.50%
SubsidiariesMember \| Interest Rate Cap \| London Interbank Offered Rate (LIBOR) [Member]
Derivatives Fair Value [Line Items]
Derivative, Cap Interest Rate				4.50%

Derivative Instruments and Hedging Activities - Summary of Interest Rate Derivative (Details) - SubsidiariesMember - Interest Rate Cap - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021
Derivatives designated as hedging instruments:
Total derivative liabilities designated as hedging instruments	$ 0	$ (242)
Other Current Liabilities [Member]
Derivatives designated as hedging instruments:
Total derivative liabilities designated as hedging instruments	0	(182)
Other Long-Term Liabilities [Member]
Derivatives designated as hedging instruments:
Total derivative liabilities designated as hedging instruments	$ 0	$ (60)

Derivative Instruments and Hedging Activities - Summary of Unrealized Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Details) - SubsidiariesMember - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Derivatives designated as hedging instruments:
Total		$ 204	$ 208
Other Comprehensive Income (Loss) \| Designated as Hedging Instrument
Derivatives designated as hedging instruments:
Total	$ 0	286	208
Interest Rate Cap \| Other Comprehensive Income (Loss) \| Designated as Hedging Instrument
Derivatives designated as hedging instruments:
Total	$ 0	$ 286	$ 208

Leases - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Rent expense	$ 2,429	$ 3,064
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract			10 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract			1 year

Leases - Schedule of Components of Lease Cost (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Leases [Abstract]
Operating lease costs	$ 2,052
Variable lease costs	729
Sublease income	(614)
Total lease costs	$ 2,167

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Lessee, Operating Lease, Liability, to be Paid [Abstract]
2023	$ 1,524
2024	1,346
2025	1,232
2026	880
2027	863
Thereafter	290
Total lease payments	6,135
Less: amount representing interest	(596)
Present value of lease liabilities	5,539
Less: current portion	(1,312)
Operating lease liabilities, net of current portion	$ 4,227

Leases - Schedule of Future maturities of operating lease obligations (Details) $ in Thousands	Dec. 25, 2021 USD ($)
Leases [Abstract]
2022	$ 2,098
2023	1,524
2024	1,346
2025	1,232
2026	880
Thereafter	1,152
Total	$ 8,232

Leases - Schedule of Weighted Average Lease Term and Discount Rate of Operating Leases (Details)	Dec. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term (years)	4 years 7 months 6 days
Weighted average discount rate	4.40%

Leases - Schedule of Payments for Measurement of Leases Liabilities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 2,331

Commitment and Contingencies - Additional Information (Details) - Inventory and Advertising [Member] $ in Thousands	Dec. 31, 2022 USD ($)
Commitments And Contingencies Disclosure [Line Items]
Purchase commitments	$ 16,221
Purchase commitments expects to pay during fiscal year 2023	$ 13,111

Stockholder's Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands					12 Months Ended
	May 24, 2022	Apr. 11, 2022	Nov. 15, 2021	Aug. 09, 2021	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020	Nov. 02, 2022	Aug. 04, 2021
Stockholders Equity Note [Line Items]
Payment of common stock offering costs					$ 870	$ 0	$ 0
Dividends to holders of Class A common stock		$ 122,227			122,227	0	0
Common Stock, Dividends, Per Share, Declared		$ 3.30
Dividend equivalents to holders of EWC Ventures units		$ 83,020			83,020	$ 0	0
Accrued dividend equivalent		$ 3,757
Accrued dividend equivalents					1,777
Dividends Payable Non current					$ 1,980
SubsidiariesMember
Stockholders Equity Note [Line Items]
Preferred Stock, Shares Authorized					100,000,000	100,000,000			100,000,000
Preferred Stock Par Value					$ 0.00001	$ 0.00001
Venture units purchased						6,637,258
Payment in exchange for units				$ 104,935
Payment of common stock offering costs						$ 9,930	$ 91
Accrued dividend equivalents					$ 1,777	0
Stock Repurchased During Period Value					$ 10,080	$ 138,368
Secondary Public Offering [Member]
Stockholders Equity Note [Line Items]
Payment of common stock offering costs			$ 1,300
Preferred Stock [Member] \| SubsidiariesMember
Stockholders Equity Note [Line Items]
Common Stock, Par Value									$ 0.00001
Preferred Stock, Shares Authorized					100,000,000
Preferred Stock Par Value					$ 0.00001
Class A Common Stock [Member]
Stockholders Equity Note [Line Items]
Common Stock, Shares, Issued									9,829,204
Shares issued, price per share									$ 17.00
Proceeds from Issuance of Common Stock				155,400
Converted To Class a Common Stock					8,220,250	2,850,000
Common Stock, Dividends, Per Share, Declared		$ 3.30
Warrant repurchase								$ 40,000
Stock Repurchased During Period Shares					715,640
Repurchased Common Stock Average Price Per Share					$ 14.09
Stock Repurchased During Period Value					$ 10,080
Class A Common Stock [Member] \| SubsidiariesMember
Stockholders Equity Note [Line Items]
Common Stock, Shares Authorized					600,000,000	600,000,000			600,000,000
Common Stock, Par Value					$ 0.00001	$ 0.00001			$ 0.00001
Common stock sold by selling shareholders									2,360,796
Common Stock, Shares, Issued					45,277,325	36,932,423			1,590,000
Class A Common Stock [Member] \| Secondary Public Offering [Member]
Stockholders Equity Note [Line Items]
Common stock sold by selling shareholders	5,175,000
Common Stock, Shares, Issued			2,701,601
Shares issued, price per share	$ 21.50		$ 26.25
Proceeds from Issuance of Common Stock			$ 67,900
Converted To Class a Common Stock	2,403,228
Class A Common Stock [Member] \| Secondary Public Offering [Member] \| SubsidiariesMember \| Selling Stockholders [Member]
Stockholders Equity Note [Line Items]
Common stock sold by selling shareholders			3,297,922
Class A Common Stock [Member] \| Underwriters Option [Member] \| Secondary Public Offering [Member] \| SubsidiariesMember
Stockholders Equity Note [Line Items]
Common Stock, Shares, Issued			782,546
Class B Common Stock [Member]
Stockholders Equity Note [Line Items]
Venture units purchased						3,191,946
Payment in exchange for units				50,465
Converted To Class a Common Stock					8,220,250	2,850,000
Class B Common Stock [Member] \| SubsidiariesMember
Stockholders Equity Note [Line Items]
Common Stock, Shares Authorized					60,000,000	60,000,000			60,000,000
Common Stock, Par Value					$ 0.00001	$ 0.00001			$ 0.00001
Common Stock, Shares, Issued					18,175,652	26,700,477
Venture units purchased						1,176,468
Payment in exchange for units				$ 20,000
Class B Common Stock [Member] \| Secondary Public Offering [Member]
Stockholders Equity Note [Line Items]
Venture units purchased			2,701,601
Payment in exchange for units			$ 67,900
Converted To Class a Common Stock	2,403,228
Class A Shares [Member] \| Secondary Public Offering [Member]
Stockholders Equity Note [Line Items]
Common stock sold by selling shareholders	2,771,772

Noncontrolling interest - Summary of the ownership of EWC Ventures LLC (Details)	Dec. 31, 2022 shares
Noncontrolling Interest [Line Items]
Units owned	61,821,720
Ownership percentage	100.00%
European Wax Center, Inc. [Member]
Noncontrolling Interest [Line Items]
Units owned by parent	44,561,685
Ownership percentage by parent	72.10%
Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Units owned by noncontrolling interest	17,260,035
Ownership percentage by noncontrolling interest	27.90%

Noncontrolling interest - Summary of ownership interests in EWC Ventures LLC on equity (Details) - USD ($) $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 25, 2021	Dec. 31, 2022
Noncontrolling Interest [Line Items]
Net income (loss) attributable to European Wax Center, Inc.	$ (3,415)	$ 7,277
Increase in additional-paid-in-capital as a result in ownership changes in EWC Ventures	34,208	21,412
Net increase in equity of European Wax Center, Inc. due to equity interest transactions with noncontrolling interests	$ 30,793	$ 28,689

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Revenue from Contract with Customers - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Prepaid Expenses and Other Current Assets [Member]
Disaggregation Of Revenue [Line Items]
Capitalized contract cost, net, current	$ 410	$ 425
Other Non-current Assets [Member]
Disaggregation Of Revenue [Line Items]
Capitalized contract cost, net, noncurrent	1,811	2,221
Selling General and Administrative Expenses
Disaggregation Of Revenue [Line Items]
Capitalized contract cost, amortization	$ 425	$ 437	$ 429

Revenue from Contract with Customers - Schedule of Changes in Contract Liabilities (Details) - SubsidiariesMember - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Disaggregation Of Revenue [Line Items]
Contract with Customer, Liability	$ 10,985	$ 9,791	$ 8,879	$ 9,257
Revenue recognized that was included in the contract liability at the beginning of the year	(2,289)	(2,599)	(2,461)
Increase, excluding amounts recognized as revenue during the period	$ 3,483	$ 3,511	$ 2,083

Revenue from Contract with Customers - Additional Information (Details 1)	Dec. 31, 2022
SubsidiariesMember \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Disaggregation Of Revenue [Line Items]
Weighted average remaining amortization period of deferred revenue	4 years 2 months 12 days

Revenue from Contract with Customers - Schedule of Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) - SubsidiariesMember $ in Thousands	Dec. 31, 2022 USD ($)
Disaggregation Of Revenue [Line Items]
2023	$ 2,819
2024	1,265
2025	1,202
2026	1,131
2027	1,021
Thereafter	3,547
Total	$ 10,985

Revenue from Contract with Customers - Summary of Balances in Deferred Revenue (Details) - SubsidiariesMember - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021
Disaggregation Of Revenue [Line Items]
Total deferred revenue	$ 10,985	$ 9,791
Deferred revenue, net of current portion	6,901	6,787
Deferred revenue, current portion	4,084	3,004
Franchise Fees [Member]
Disaggregation Of Revenue [Line Items]
Total deferred revenue	8,167	7,911
Service Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total deferred revenue	$ 2,818	$ 1,880

Equity Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 25, 2021	Dec. 31, 2022	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Granted		0
Weighted average exercise price, granted		$ 0
EWC Ventures LLC [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation				$ 8,489
Employee Stock Option [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized compensation expense, stock options		$ 841	$ 841
Weighted average period for unrecognized compensation expense		1 year 7 months 6 days
Restricted Stock Units (RSUs) [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Weighted average period for unrecognized compensation expense		1 year 7 months 6 days
Fair value of units vested		$ 3,117		307
Granted		69,266
Unrecognized compensation expense, other than options		$ 4,053	4,053
Time Based Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Weighted average period for unrecognized compensation expense		1 year 2 months 12 days
Fair value of units vested	$ 6,016	$ 7,240
Granted		0
Unrecognized compensation expense		$ 940	940
Accelerated vesting, number		75,000
Two Point Zero And Two Point Five Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation				5,645
Weighted average period for unrecognized compensation expense		1 year 7 months 6 days
Fair value of units vested	1,194	$ 1,603
Granted		0
Unrecognized compensation expense		$ 1,169	1,169
Three Point Zero Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Weighted average period for unrecognized compensation expense		3 months 18 days
Granted		0
Unrecognized compensation expense		$ 608	$ 608
Selling General and Administrative Expenses \| Employee Stock Option [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		440		305
Selling General and Administrative Expenses \| Restricted Stock Units (RSUs) [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		2,839		1,219
Selling General and Administrative Expenses \| Time Based Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		2,277		1,122	$ 2,052
Expense related to acceleration of vesting		1,248
Selling General and Administrative Expenses \| Two Point Zero And Two Point Five Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		1,123		7,240
Selling General and Administrative Expenses \| Three Point Zero Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		$ 2,354		$ 1,249
Class A Common Stock [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Weighted-Average Grant Date Fair Value, Granted				$ 7.48
Class A Common Stock [Member] \| Share-Based Payment Arrangement, Employee [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Granted				322,997
Weighted average exercise price, granted				$ 17.00
The 2021 Incentive Plan [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of shares available for issuance		6,249,708
Equity based compensation		$ 9,033		$ 11,135	2,052
Income tax expense (benefit)	$ 0	595
The 2021 Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		2,839		1,219	0
The 2021 Incentive Plan [Member] \| Time Based Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		2,277		1,122	2,052
The 2021 Incentive Plan [Member] \| Two Point Zero And Two Point Five Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		1,123		7,240	0
The 2021 Incentive Plan [Member] \| Three Point Zero Units [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Equity based compensation		$ 2,354		$ 1,249	0
The 2021 Incentive Plan [Member] \| Share-Based Payment Arrangement, Employee [Member] \| Restricted Stock Units (RSUs) [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Granted		69,266		494,388
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage		33.33%
The 2021 Incentive Plan [Member] \| Minimum
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Percentage of increase in shares of common stock reserved for issuance				1.00%
The 2021 Incentive Plan [Member] \| Class A Common Stock [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Common stock reserved for future issuance	6,374,273			6,374,273
Granted			0
Equity based compensation		$ 440		$ 305	$ 0

Equity Based Compensation - Summary of Outstanding Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Beginning Balance	301,464
Granted	0
Exercised	0
Expired	0
Forfeited	(88,286)
Ending balance	213,178
Exercisable	0
Weighted average exercise price, Beginning balance	$ 17.00
Weighted average exercise price, granted	0
Weighted average exercise price, Exercised	0
Weighted average exercise price, Expired	0
Weighted average exercise price, forfeited	17.00
Weighted average exercise price, Ending balance	17.00
Weighted average exercise price, options exercisable	$ 0
Weighted average remaining contractual term (years),ending	8 years 7 months 6 days
Aggregate intrinsic value, ending	$ 0
Aggregate intrinsic value, options exercisable	$ 0

Equity Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	12 Months Ended
	Dec. 25, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected dividend yield	0.00%
Expected volatility	43.80%
Risk-free rate	0.90%
Expected term (in years)	6 years 6 months

Equity Based Compensation - Summary of restricted stock awards activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning balance \| shares	455,971
Granted \| shares	69,266
Vested \| shares	(157,349)
Forfeited \| shares	(82,429)
Ending balance \| shares	285,459
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 17.41
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	21.42
Weighted average grant date fair value, vested \| $ / shares	17.33
Weighted-Average Grant Date Fair Value, Forfeited \| $ / shares	18.30
Weighted-Average Grant Date Fair Value, ending \| $ / shares	$ 18.24

Equity Based Compensation - Summary of Activity Related to the Time-based Units (Details) - Time Based Units [Member]	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 2.62
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	0
Weighted average grant date fair value, vested \| $ / shares	2.58
Weighted-Average Grant Date Fair Value, Forfeited \| $ / shares	3.09
Weighted-Average Grant Date Fair Value, ending \| $ / shares	$ 2.53
Beginning balance \| shares	777,761
Granted \| shares	0
Vested \| shares	(371,119)
Forfeited \| shares	(97,312)
Ending balance \| shares	309,330

Equity Based Compensation - Summary of Activity Related to the 2.0x and 2.5x Units (Details) - Two Point Zero And Two Point Five Units [Member]	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning balance \| shares	275,031
Granted \| shares	0
Vested \| shares	(72,461)
Forfeited \| shares	(129,991)
Ending balance \| shares	72,579
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 17.00
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	0
Weighted average grant date fair value, vested \| $ / shares	17.00
Weighted-Average Grant Date Fair Value, Forfeited \| $ / shares	17.00
Weighted-Average Grant Date Fair Value, ending \| $ / shares	$ 17.00

Equity Based Compensation - Summary of Activity Related to the 3.0x (Details) - Three Point Zero Units [Member]	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning balance \| shares	610,979
Granted \| shares	0
Vested \| shares	0
Forfeited \| shares	(77,272)
Ending balance \| shares	533,707
Weighted average grant date fair value, Beginning Balance \| $ / shares	$ 7.75
Weighted-Average Grant Date Fair Value, Granted \| $ / shares	0
Weighted average grant date fair value, vested \| $ / shares	0
Weighted-Average Grant Date Fair Value, Forfeited \| $ / shares	7.70
Weighted-Average Grant Date Fair Value, ending \| $ / shares	$ 7.76

Equity Based Compensation - Schedule Of Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Two Point Zero And Two Point Five Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation		$ 5,645
The 2021 Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation	$ 9,033	11,135	$ 2,052
The 2021 Incentive Plan [Member] \| Class A Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation	440	305	0
The 2021 Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation	2,839	1,219	0
The 2021 Incentive Plan [Member] \| Time Based Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation	2,277	1,122	2,052
The 2021 Incentive Plan [Member] \| Two Point Zero And Two Point Five Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation	1,123	7,240	0
The 2021 Incentive Plan [Member] \| Three Point Zero Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity based compensation	$ 2,354	$ 1,249	$ 0

Employee Retirement Plan - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Defined Contribution Plan Disclosure [Line Items]
Employer match expense	$ 418	$ 349	$ 301
Selling General and Administrative Expenses
Defined Contribution Plan Disclosure [Line Items]
Employer match expense	391	330	291
Cost of Sales [Member]
Defined Contribution Plan Disclosure [Line Items]
Employer match expense	$ 27	$ 19	$ 10

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Related Party Transaction [Line Items]
Related party consulting fees		$ 0
Consulting Fees		$ 0
SubsidiariesMember
Related Party Transaction [Line Items]
Related party consulting fees	$ 0		$ 117	$ 200
Consulting Fees	$ 0		$ 117	$ 200

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	7 Months Ended	12 Months Ended
	Aug. 03, 2021	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Schedule Of Income Taxes [Line Items]
Current or deferred income taxes		$ (53,191)	$ 114
Gross federal net operating loss carryforwards		66,546
Gross state net operating loss carryforwards		$ 29,765
Federal and State net Operating Losses Indefinite Carryforward		80.00%
Unrecognized Tax Benefits		$ 0
Amount paid under tax receivable agreement		912
Remeasurement of tax receivable agreement liability		(56,228)	(195)	$ 0
SubsidiariesMember
Schedule Of Income Taxes [Line Items]
Current or deferred income taxes	$ 0	(53,191)	114	0
Future payments under tax receivable agreement		172,160
Other expense		56,228	195	$ 0
SubsidiariesMember \| Other Non Operating Expense [Member]
Schedule Of Income Taxes [Line Items]
Remeasurement of tax receivable agreement liability		$ 56,228	$ 195

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Current:
Federal	$ 0	$ 0
State	523	114
Current Income Tax Expense (Benefit)	523	114
Deferred:
Federal	(45,423)	0
State	(8,291)	0
Deferred Income Tax Expense (Benefit)	(53,714)	0	$ 0
Income Tax Expense	$ (53,191)	$ 114

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Effective Rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Statutory federal income tax rate	21.00%	21.00%
State income taxes, net	19.90%	2.20%
Pre-IPO period not subject to income tax	0.00%	(53.10%)
Income attributable to noncontrolling interest	3.40%	15.10%
Nondeductible executive compensation	(0.20%)	0.80%
Tax receivable agreement	(10.90%)	0.00%
Investment in EWC Ventures	(11.70%)	47.40%
Valuation allowance	112.20%	(30.60%)
Other	(0.70%)	0.00%
Effective income tax rate reconciliation, Percent	134.40%	2.80%

Income Taxes - Summary of Temporary differences to Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 25, 2021	Dec. 26, 2020
Deferred tax assets
Net operating losses	$ 15,592	$ 7,396
Investment in EWC Ventures	55,804	30,750
Tax receivable agreement	33,205	9,540
Excess Interest Expense	995	0
Equity based compensation	562	349
Other	36	34
Total deferred tax assets before valuation allowance	106,194	48,069
Valuation allowance	0	(48,069)	$ 0
Total deferred tax assets after valuation allowance	106,194	0
Deferred tax liabilities:
Other	(7)
Total deferred tax liabilities	(7)	0
Net deferred tax asset	$ 106,187	$ 0

Income Taxes - Summary of Change in Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 25, 2021
Valuation Allowance [Abstract]
Beginning balance	$ (48,069)	$ 0
Recorded to additional-paid-in-capital	0	(50,373)
Recorded to other comprehensive income	0	32
Recorded to income tax expense	48,069	2,272
Ending balance	$ 0	$ (48,069)

Net Income (Loss) per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

5 Months Ended

12 Months Ended

Dec. 25, 2021

Dec. 31, 2022

Dec. 25, 2021

Dec. 26, 2020

Class A Common Stock [Member] | Restricted Stock Units (RSUs) [Member]

Net income (loss)

$ 13,613

$ 3,967

$ (21,495)

RSUs

124,607

SubsidiariesMember | Share Based Payment Arrangement Option [Member]

Net income (loss)

$ 13,613

$ 3,967

$ (21,495)

SubsidiariesMember | Class A Common Stock [Member]

Options

$ 0

$ 15,988

Basic weighted average outstanding shares Class A Common Stock

32,234,507

40,010,456

32,234,507

Basic net income (loss) per share applicable to shareholders, Class A Common Stock

^[1]

$ 0.19

$ (0.11)

$ 0

Diluted weighted average outstanding shares - Class A Common Stock

32,234,507

40,151,051

32,234,507

Diluted net income (loss) per share applicable to common shareholders Class A Common Stock

^[1]

$ 0.19

$ (0.11)

$ 0

SubsidiariesMember | Class A Units [Member]

Less: net income (loss) attributable to noncontrolling interests

Net income (loss)

$ (6,360)

$ 13,613

(2,857)

6,050

Less: net income (loss) attributable to noncontrolling interests

(2,857)

6,037

Net income (loss) applicable to Class A common shareholders

(3,503)

7,563

Net Income (loss) applicable to Class A common shareholders

$ (3,503)

$ 7,576

Basic net income (loss) per share applicable to shareholders, Class A Common Stock

$ (0.11)

$ 0.19