Fred Astaire Dance Studios Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$296,200 - $658,200
Franchise Fee
$15,000
Total US Locations
254
Business Summary
FRED ASTAIRE DANCE STUDIOS® operates studios that specialize in offering dance and dance fitness classes. These classes are led by trained instructors known as "Astaire Pros". The studios aim to attract customers of all ages and economic levels, primarily targeting adults between 18 and 75 years old.
Corporate History
FRED ASTAIRE DANCE STUDIOS® traces its origins back to Fred Astaire Dance Studios Corporation, a Florida corporation incorporated in 1963, which served as the franchisor. In 1969, Fred Astaire Dance Studios Corporation assigned its interests to Fred Astaire Dance Studios, Inc. (then Ronby Corp., incorporated in 1964), another affiliate that continued as the franchisor. In February 1995, FADS USA, Inc. (then Megadance USA Corp., incorporated in January 1995) acquired all existing franchise, subfranchise, and area representative agreements. In March 2018, Megadance USA Corp. changed its name to FADS USA, Inc. The company also operates video platforms (Life's Better When You Dance, Online Trophy System) and an e-commerce Dance Store. In September 2017, FADS Global, LLC acquired a controlling ownership interest in Fred Astaire Dance of North America, Inc., which is the parent of FADS USA, Inc.
Financial Overview
Investment Range
$296,200 - $658,200
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$60,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$125,000
Equipment Costs (High)
$315,000
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
FRED ASTAIRE DANCE STUDIOS® provides audited financial statements for fiscal years 2022, 2023, and 2024, showing an unqualified opinion from its independent auditors, indicating that the financial statements are presented fairly. The auditors evaluated the company's ability to continue as a going concern and found no substantial doubt. The company maintains retained earnings that increased from $13.7 million in 2022 to $16.5 million in 2024, with net income fluctuating between $1.0 million and $1.8 million during this period. Uninsured cash at December 31, 2024, was approximately $3.8 million. The company complies with its debt service ratio covenant. It has significant notes payable, including a $5 million bank note from September 2023, and also holds notes receivable from Area Representatives. A long-term liability for prepaid dance lessons of $623,201 was recorded at December 31, 2024. Overall, FRED ASTAIRE DANCE STUDIOS® appears to be in a stable financial position.
Financing Details
FRED ASTAIRE DANCE STUDIOS® does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations that franchisees might incur.
Performance Metrics
Total US Locations
254
Franchised Units
254
Corporate Units
0
Avg Square Footage
3,250
Franchising Since
1963
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
FRED ASTAIRE DANCE STUDIOS® has disclosed three litigation matters. Two of these are historical: an FTC Modified Consent Order from 1989 (originally 1964) regarding sales practices for prepaid dance lessons, and a Virginia Settlement Order from 2016 concerning the sale of an unregistered franchise. There is one ongoing proceeding involving a 'Dancing Couple' Logo, where the franchisor has asserted an infringement claim against a former franchisee, who has filed a counterclaim. This matter is still pending before the Trademark Trial and Appeal Board.
Bankruptcy History
FRED ASTAIRE DANCE STUDIOS® has no bankruptcy history to disclose for itself, its predecessors, affiliates, or officers.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their FRED ASTAIRE DANCE STUDIOS® franchise agreement, franchisees must provide written notice between six and twelve months before the initial term expires. They must sign the franchisor's then-current franchise agreement, which may have different terms. Franchisees are also required to refurbish or renovate their studio to meet current brand standards, sign a general release of claims against the franchisor and its affiliates, complete all current training requirements, and secure the right to operate at their site for the renewal term. Additionally, franchisees must have substantially complied with their agreement throughout the initial term, have no uncured defaults, and pay a renewal fee equal to 50% of the original franchise fee at least 30 days before the initial term ends.
Training & Support Program
Franchisor Assistance
Before a FRED ASTAIRE DANCE STUDIOS® location opens, the franchisor assists with site selection guidelines, reviews and approves proposed sites and leases, and provides sample architectural and design plans. It also approves architectural and engineering firms and general contractors, grants access to online manuals, and provides initial training. The franchisor helps plan grand opening marketing programs and advises on initial merchandise orders, class schedules, and local marketing. After opening, FRED ASTAIRE DANCE STUDIOS® offers ongoing support by providing information on approved suppliers, reviewing franchisee advertising materials, and offering additional consulting services upon request. It maintains and administers the FADS Advertising Fund for system-wide marketing, conducts periodic site visits and audits for compliance, and establishes and maintains a website with information about each studio. The franchisor also provides mandatory and optional training programs, including an annual conference, and may offer temporary Key Manager or Astaire Pro services for a fee.
Initial Training Hours
37
Training Location
Franchisor headquarters in Enfield, CT
Ongoing Support
After a FRED ASTAIRE DANCE STUDIOS® location opens, the franchisor provides ongoing technical, managerial, and administrative advice via phone, email, and other communications. It makes information available about new developments in merchandising, advertising, management, and operations through various media, including e-learning, meetings, and webinars. The franchisor may also require franchisees and their key personnel to attend supplemental, refresher, or remedial training programs and annual conferences (like the Fred Astaire Conference & Training, FACT). Optional training programs are also available for a fee. Additionally, the franchisor may provide temporary Key Managers or Astaire Pros to teach classes at a studio for a fee if needed. Franchisees are responsible for training their own employees in accordance with franchisor standards.
Franchise Requirements
Ideal Candidate Profile
FRED ASTAIRE DANCE STUDIOS® seeks franchisees who are business-minded individuals capable of managing and operating a studio. If the franchisee is an entity, the Operating Principal must hold at least a 10% ownership interest and have authority over all business decisions for the studio, with the power to bind the entity in dealings with the franchisor. A Key Manager, who may be the Operating Principal, must also be appointed to oversee daily operations. Both the Operating Principal and Key Manager must successfully complete the franchisor's training program, demonstrating commitment to the FRED ASTAIRE DANCE STUDIOS® system.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
FRED ASTAIRE DANCE STUDIOS® defines territories based on the density and demographics of the geographic area surrounding the studio. For instance, studios in major metropolitan or heavily populated business districts may have smaller territories compared to those in rural or suburban locations. Typically, the minimum size of a territory will encompass at least 15,000 people. The boundaries are described using zip codes, streets, natural or man-made landmarks, or county lines, and are delineated on a map.
Staffing Notes
FRED ASTAIRE DANCE STUDIOS® requires that a studio is always under the personal, on-premises supervision of the franchisee, their Operating Principal, Key Manager, or a trained attendant during business hours. The Operating Principal, who must have at least a 10% ownership stake, oversees all business decisions and binds the franchisee in dealings with the franchisor. A Key Manager is responsible for day-to-day operations and may be the same person as the Operating Principal. Both must complete initial training. Franchisees are responsible for training all other employees, including subsequent Key Managers, according to franchisor standards. The franchisor may temporarily provide Key Managers or Astaire Pros for a fee if needed.