Jazzercise

Date of Incorporation: 1979

Franchising Since: 1982

Headquarters: Carlsbad, California

Country: U.S.

Business Description: The Jazzercise dance fitness 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 via routine packets that contain choreographed routines which are currently on DVD. In addition, Jazzercise operates a division called "Jazzertogs" which distributes products such as clothing, accessories, books, kits and visual recordings bearing the "Jazzercise" name. Some instructors are licensed to conduct a dance fitness program consisting solely of low intensity formats.

Franchise Offer: Jazzercise conducts dance fitness program and licenses instructors to do so as well.  The general market for the services a Jazzercise instructor offers is the general public.

Financial Assistance: Jazzercise does not offer direct or indirect financing. Jazzercise does not guarantee note, lease or obligation.

Training and Assistance: The franchisee will receive a pre-workshop training packet approximately two weeks before the initial training workshop begins. Franchisee must review the materials and practice the routines during the two weeks before the workshop. The two to three day extensive workshop for all franchisees is conducted at selected locations throughout the country. Jazzercise does not charge for this training or service, but franchisee must pay travel and living expenses while attending the workshop.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees or from other channels of distribution or competitive brands that the franchisor controls.

Term of Agreement and Renewal: The length of the franchise agreement is five years. If the franchisee meets certain conditions, franchisee can enter into a renewal Franchise Agreement for an additional term of five years.

Obligations and Restrictions: The franchisee is the only individual authorized to conduct the Jazzercise dance fitness program. Some instructors are only permitted to conduct a dance fitness program consisting solely of low intensity routines or consisting solely of children's programs. Those instructors must obtain Jazzercise's written consent before they can teach other classes. Business franchisees are not permitted to teach classes at all and must make arrangements with other Jazzercise instructors to do so.

Total Number of Units: Over 8,000 units worldwide.

Investment Tables:

Initial Investment (For Franchisees That Rent Facilities)

Expenditure Low High
Initial Franchise Fee $1,000 $1,000
Travel and living expensed while training $0 $1,000
Real estate and improvements $5,000 $50,000
Equipment $3,000 $10,000
Miscellaneous opening costs $500 $5,000
Opening inventory $0 $1,000
Additional funds - 3 months $100 $7,000
Total $9,600 $75,500

Ongoing Fees:

Name of Fee Amount
Continuing Franchise Fee 20% of gross customer enrolment (10% for certain programs). Minimum $50 per month. Business franchise minimum is $500 per month.
Substitute Fee $100 per year
Performance Royalties Varies, depending on organization and number of customers.
Status Change Processing Fee $50-$100
   
Reinstatement Fee $100
Recertification Fee $500
Relocation fee $75
Optional EFT Processing Fee $25 plus $1 per customer and 250 or 3.5% per customer per month.
Optional Software Support & Upgrade Free for 90 days; Support option - $75 per year for 12 incidents.
Customer Reimbursement Fee Payment of Jazzercise's costs
Indemnification Payment of Jazzercise's losses and costs.
Late Fee $50
Substitute Late Fee $25
NSF Administrative Handling Fee $25
Audit Cost Cost of audit, estimated to range from $50 to $1,000.
Attorney's Fees Reasonable attorney's fees and costs.
Advertising Contribution To be determined

Date of FDD: 2009

The above information has been compiled from the FDD of Jazzercise along with online sources.

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