Judi Sheppard Missett founded Jazzercise in Illinois in 1968, and since then, this company has grown to more than 8,000 franchise units in the U.S and abroad. This dance fitness brand offers a low-cost franchising opportunity, which means that it will also be available to those interested investors who don’t own a high startup budget.
Currently, this company has dance studios in more than 32 countries, and they are searching for new franchisees in the U.S and abroad. This Jazzercise franchise review will deliver to potential franchise applicants all information about starting costs, fees, and profit that this brand’s franchise owner can expect.
How Much Does The Jazzercise Franchise Cost
The estimated Jazzercise franchise cost is between $3,750 and $21,750 for Dance/Fitness Centers and $2,415 to $3,200 for becoming an Associate Instructor franchisee. In both these financial projections, we included the Initial Franchise Fee of $1,250 and all other starting costs.
As we can see above, the more affordable starting option will be to become an Associate Instructor. Every Jazzercise certified instructor must sign a specific franchise agreement, and after that, the franchisee gets the right to become a class owner or work for other franchisees.
For those investors who want to start a dance/fitness center, the Jazzercise franchise cost will be much higher primarily because of expenses related to working equipment, leasing location, and advertising.
This brand’s dance centers are typically located in strip shopping malls and light industrial areas and usually have 1,200 to 3,000 square feet of space; future franchisees must know that renting a property will be a necessary ongoing cost.
Starting this brand franchise is very affordable, and the franchisor itself is pretty flexible. New franchisees can start at locations with fewer square feet, and as more customers begin to pay membership fees, it is possible to change location to one more appropriate.
Jazzercise franchise cost list:
- Initial Franchise Fee: $1,250 – same cost for U.S and International applicants
- Equipment: $1,775 – $5,000
- Initial Marketing & Advertising: $0 – $5,000
- Rent: $0 – $2,500
- Insurance: $185 to $275
- Music: $30 to $55
- All other opening costs: $400 – $670
- Neccesery funds for first 3 months: $110 – $7,000
- Estimated Total Investment: $3,750 – $21,750
This franchisor doesn’t have financial requirements that franchise applicants must meet regarding Net Worth and Liquid Capital. Also, this company doesn’t offer in-house financing for Jazzercise franchise starting costs, so investors will need to search for services from third-party funding sources.
Jazzercise Franchise Fee
The new Jazzercise Dance/Fitness Center franchise owner will need to pay a one-time Initial Fee of $1,250 and an ongoing Royalty Fee that is a minimum of $500, or 20% of the monthly gross customer enrollment income.
So, the Dance/Fitness Center franchise applicants must know that they will have costs related to royalties even if the franchise still doesn’t have any members. After 20% of the membership income exceded $500, a franchisor will calculate this fee cost according to the monthly customer’s membership revenue.
For the franchisees that sign the franchise agreement for the class owners, the Jazzercise royalty fee will be a minimum of $250 per month, or 20% of the membership income. For franchisees who fall in the group of Associate Instructors (do not own their classes, work for other franchisees), the ongoing monthly royalties are only $12 per month.
The Initial Franchise Fee has the same cost for the U.S and foreign countries franchisees. Only former Jazzercise employees have the right to the 50% discount of the Initial Fee, which means that for this group of franchise applicants, this amount will be only $625.00.
Also, owners of Dance/Fitness Centers franchises will need to pay royalties for music which will cost a maximum of $120 per month, and an insurance fee of $185.00 to $275.00 per year.
Jazzercise Franchise list of Fees:
- Initial Franchise Fee: $1,250 – one time cost
- Royalty Fee: 20% of gross customer enrollment – or minimum $250 – $500
- Music Royalty Fee: $60 – $120 per month
- Insurance Fee: $185.00 – $275.00 per year
The Associate Instructor franchisees are not obligated to pay royalties, music, and insurance fees as listed above; the 20% from the membership income needs to pay the Centers and Class Owners only.
Jazzercise Franchise Profit
In this business niche, a Profit Margin is between 30% to 40%, which means that Jazzercise franchise owners can expect at least 30% of the profit from the price of all sold memberships. But the precise annual income that the owner will make will depend primarily on the franchisee’s business skill to attract more regular customers.
This franchisor has low ongoing monthly royalty fees, which means that the owner will have a lot of space to make more profit for herself. However, this is not a rich quick scheme, so the franchisee must be aware that this business can fail if the franchise unit doesn’t have an optimal number of regular customers.
To operate a successful Jazzercise franchise that will bring secure income every month, the owner must be familiar with this business and start from the bottom. This franchisor offers three types of a franchise agreements, and it is possible to make a deal according to the experience that franchise applicants have.
Types of Jazzercise franchises:
- Associate Instructors
- Class Owners
- Dance/Fitness Centers
Jazzercise Class Owner and Dance Fitness Center franchisees will have more operating ongoing costs, and they will need a certain number of sold memberships per month to start making a profit.
For the franchisee, it is the best option to start as an Associate Instructor and, after making connections with customers, begin to scale the business to Class Owner and later to the Dance and Fitness Center Owner.
Jazzercise Company Overview
Judi Sheppard Missett opened the first Jazzercise fitness studio in 1968 in California, and in 1982 she started to offer a franchise opportunity for interested investors. Today, with more than 8,000 franchisees in more than 30 countries, this company is one of the Dance and Fitness Industry leaders.
This company’s franchise units offer their customers classes that combine dance and full-body workouts. In return for the service, the clients pay the customer membership fee, which is the primary source of income for the franchisee.
On average, the membership for customers of these dance and fitness classes is $60 per month, and women are the main users of this company’s services. So, how much Jazzercise franchise owners can profit will be determined by the number of sold memberships.
This company makes their profit from franchisees, who are paying them the ongoing Royalty Fee, which is 20% of membership fees. This percentage of ongoing royalty cost will not burden franchisee profitability, which is the main reason why this brand is soo popular among investors.
When we know how much the Jazzercise franchise cost, we can summarize that this company’s offer is one of the most affordable starting business opportunities for women who love dance and fitness.
Approximately 6,000 Jazzercise franchise units are U.S based, and 2,000 are international ones. Every year this company’s franchising opportunity is more and more popular among foreign investors, primarily because of the business flexibility that this franchisor gives to its franchisees.
The Fitness Industry grows every year, so it is expected that this company’s franchised dance and fitness studios will become even more popular among customers in the future, which means that these franchises will deliver more profit to their owners.
For all those who enjoy the combination of dance and fitness and have a little bit of entrepreneurial spirit, starting a Jazzercise franchise will be the right business choice. The franchisee of this brand can expect a low starting cost, low franchisor ongoing fees, and low operational cost.
When we see the ratio of Jazzercise franchise cost and potential profit that franchisees can make, we must conclude that this can be a very lucrative business venture. So if you are a dance enthusiast who has a few thousand dollars to invest in the business, starting this franchise can be an ideal choice.