Arthur Murray Dance Studio Franchise Costs, Fees & FDD

Year Business Began: 1913

Franchising Since: 1938

Headquarters: Coral Gables, Florida

Estimated Number of Units: 300

Franchise Description: Arthur Murray International, Inc. is the franchisor. The franchisor offers the franchise to persons who have owned, operated, or instructed at dance studios or have been involved in the dance studio business. The franchise offered is to operate an Arthur Murray Dance Studio, which provides dance instruction and similar services. Franchisees might be permitted (under additional agreements) to conduct dance competitions and similar events.
Training Overview: Because franchisees already have experience in operating a dance studio, the franchisor does not routinely conduct a training program. However, at the franchisor’s option, franchisees or the studio’s approved manager must enroll in and complete to the franchisor’s satisfaction a two to three day training program before the studio opens. Franchisees also may voluntarily attend this training program. Training currently occurs at the franchisor’s training facility in Coral Gables, Florida. The franchisor does not have any mandatory refresher training programs during the year. Franchisees may attend any training programs that the franchisor periodically offers at various locations for free, although they must pay their own travel and living expenses.

Territory Granted: The franchisor first must approve the studio location. Franchisees do not receive an exclusive area. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands the franchisor controls. However, if the franchisee’s market is large enough to justify more than one studio, the franchisor might designate a “market area” in which the franchisee may operate as many Arthur Murray Studios as the franchisee wants. The franchisor must approve each studio location before the franchisee opens it.

Obligations and Restrictions: Franchisees must devote their full time, attention and best efforts to operating the studio. The studio always must be under the franchisee’s direct, on-premises control and full time supervision. If franchisees operate more than one studio, each studio must be under the direct on-premises supervision of an acceptable manager who has demonstrated the ability to operate a studio. Franchisees must conduct ongoing staff training programs so that all of their instructors, specialists, counselors, supervisors and other personnel know all of the franchisor’s operating and technical manuals and aids and policy releases that are relevant to their respective jobs. Franchisees must offer all products and services that the franchisor periodically requires for Arthur Murray Studios. Franchisees may not offer any products or services that the franchisor has not authorized. Franchisees must conduct their business exclusively within their market area (or, if the franchisor does not grant them a market area, an area it specifies) and franchisees may not engage in any activities outside this area, including dance competitions, without the franchisor’s consent. Franchisees must give dance instruction to students enrolled in any Arthur Murray Studio (to the extent they have not used all of their paid-for courses).

Term of Agreement and Renewal: The length of the initial franchise term is five years, which expires on December 31 of the fifth full year after the Franchise Agreement is signed. The franchise automatically renews for successive five-year terms on the then-current terms unless the franchisor or the franchisee gives the other three months’ notice of an election not to renew.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$100,000
Leasehold Improvements	$30,000	$75,000
Furniture, Fixtures and Equipment	$2,000	$18,000
Promotional Brochures and Step Charts	$120	$120
Signs	$2,000	$10,000
Three Months’ Rent	$12,000	$24,000
Training Expenses	$0	$5,000
Additional Funds – 3 months	$0	$20,000
ESTIMATED TOTAL	$71,120	$252,120

 
Other Fees

Type of Fee	Amount
Royalty	5% - 10% of weekly gross receipts.
National Advertising Fund	Up to 2% of weekly gross receipts or other fair share.
Check Handling	$30
Interest	Lesser of (i) 1.5% per month or (ii) highest applicable rate permitted by law.
Teaching Time Obligations	Then current reimbursement rate for lessons.
Contest Entry or Participation	$50 - $200 per person for one or two dinner/dance awards programs.
Audit	Reimbursement of costs and expenses.
Lobbying	$1,000
Liquidated Damages (violation of rules)	$7,500
Demand Note	$25,000
Liquidated Damages (trademark infringement)	25% of weekly gross receipts.
Curing Defaults	Will vary under circumstances.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Convention	$625
Agenda Master Software License Fee	$150 per month.
Website Licensing Fee	Currently none, but the franchisor expects to begin charging a website licensing fee in 2026.
Administrative Fee	$100 per report past due.
Liquidated Damages (unauthorized participation)	Higher of (i) 25% of revenues or other consideration received in connection with the competition or event or (ii) $10,000 dollars.
Liquidated Damages (required meetings)	$1,000 per meeting or event.
Administrative Transfer Fee	$5,000

The above information has been compiled from the FDD of Arthur Murray Dance Studio. Year of FDD: 2025.
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