Franchising Since: 1982
Headquarters: Carlsbad, California
Estimated Number of Units: 7,140
Franchise Description: The franchisor is Jazzercise, lnc. The franchisor conducts a dance fitness program and licenses instructors to do so as well. The program's aim is to promote total fitness through dance. Instructors lead classes through dance routines that are choreographed to popular tunes. Instructors learn these dance routines from videos streamed on the Jazzercise Routines Database. ln addition, the franchisor operates a division called “Jazzercise Apparel” that distributes products such as clothing, accessories, equipment and visual recordings bearing the “Jazzercise” name and any other names the franchisor develops.
Some instructors are class owners and sign a Franchise Agreement specific to class owners. Other instructors are associate instructors who only teach classes for other franchisees. Some instructors are licensed to conduct a dance fitness program consisting solely of less strenuous or low impact formats. Some instructors are licensed to conduct a dance fitness program solely limited to children's programs. There are also business owner franchisees who offer Jazzercise dance fitness classes but do not teach the classes themselves. These franchisees sign the Business Owner Franchise Agreement and retain certified Jazzercise instructors to teach their classes.
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Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees or from other channels of distribution or competitive brands that the franchisor controls. Franchisees are granted a non-exclusive right to conduct the Jazzercise dance fitness program at designated facilities and on approved dates and times within a non-exclusive territory. Territories are a state or a portion of a state. Before franchisees open a new location, close a location or transfer classes to a new location, they must obtain the franchisor’s written consent. The franchisor may license additional franchisees in the territory when it determines there is a sufficient number of potential customers to warrant additional classes or instructors in a given area or facility, or when Jazzercise determines there is a need for associate instructors.
Obligations and Restrictions: Franchisees are the only individuals authorized to conduct the Jazzercise dance fitness program. Some instructors are only permitted to conduct a dance fitness program consisting solely of less strenuous routines, consisting solely of low impact routines or consisting solely of children's programs. An instructor must be actively teaching, as periodically described by Jazzercise in the studio, in order to remain a franchisee. The minimum number of classes per month that an instructor must teach is currently four classes per month. Business franchisees do not act as instructors at all. If franchisees wish to do so, they may sell certain clothing, accessories and other products which the franchisor makes available under the Jazzercise trademarks. Franchisees may not sell these products via the Internet. Franchisees are not permitted to vary the Jazzercise program or to add products or services which the franchisor does not authorize.
Term of Agreement and Renewal: The length of the franchise agreement is five years. If franchisees meet certain conditions, they can enter into a renewal Franchise Agreement for an additional term of five years (this does not apply if the franchisee is relocating to a new state). Business owners have no renewal rights.
Financial Assistance: The franchisor does not currently offer direct or indirect financing currently. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Estimated Initial Investment
Associate Franchise
Name of Fee | Low | High |
Initial Franchise Fee | $1,250 | $1,250 |
Associate Fee | $0 | $130 |
Insurance | $245 | $345 |
Equipment | $500 | $700 |
Music | $25 | $35 |
Miscellaneous Opening Costs | $150 | $250 |
Additional Funds - 3 Months | $0 | $70 |
ESTIMATED TOTAL | $2,170 | $2,780 |
Class Owner or Business Franchise
Name of Fee | Low | High |
Initial Franchise Fee | $1,250 | $1,250 |
Insurance | $245 | $345 |
Equipment | $1,710 | $4,800 |
Music | $25 | $35 |
Marketing and Advertising | $555 | $6,495 |
Security Deposits | $0 | $10,000 |
Miscellaneous Opening Costs | $150 | $250 |
Additional Funds - 3 Months | $0 | $17,570 |
ESTIMATED TOTAL | $3,935 | $40,745 |
Other Fees
Type of Fee | Amount |
Continuing Fee | 20% of gross customer enrollment (10% for certain programs). Class owner franchise minimum currently $250 per month; business franchise minimum is $500 per month. |
Associate Fee | Up to $300; currently $130 per year if paid in one lump sum or $13 per month if paid monthly. |
Performance Royalties | Varies, depending on organization and number of customers. |
Returning Franchise Fee | $250 |
Recertification Fee | $625 |
Customer Reimbursement Fee | Payment of the franchisor’s costs. |
Indemnification | Payment of the franchisor’s losses and costs. |
Late Fee | $50, but $20 for certain fees that are paid monthly. |
Attorney's Fees | Reasonable attorney's fees and costs. |
Advertising Contribution | To be determined. |
Insurance Payment | $245 to $345. |
Technology Fee | To be determined. |
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