Risk Score
Pending analysis
Investment Range
$2,170 - $40,745
Total US Locations
5,251
Business Summary
Jazzercise operates a dance fitness program and licenses instructors to teach classes designed to promote total fitness through dance routines set to popular music. Instructors learn choreography through streaming videos. Jazzercise also offers an online exercise program called Jazzercise On Demand and a nutrition program called Simply Plated. Additionally, Jazzercise Apparel sells branded clothing, accessories, and equipment.
Corporate History
Jazzercise's dance fitness program was originally started in 1969 by Judi Sheppard Missett as a sole proprietorship. The company, Jazzercise, Inc., was then incorporated in California in 1979. Jazzercise began offering franchises for its dance fitness program in July 1982. Over the years, Jazzercise has expanded its offerings to include specific addenda for Junior Jazzercise programs (since 2000) and LO Jazzercise (since 2017), which combines earlier low impact formats. A separate Franchise Agreement for business owners was introduced in 2004. More recently, Jazzercise launched a nutrition program called Simply Plated in 2023.
Financial Overview
Investment Range
$2,170 - $40,745
Franchise Fee (High)
$1,250
Royalty %
20%
Equipment Costs (Low)
$500
Equipment Costs (High)
$4,800
Working Capital
$8,785
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Jazzercise appears to be in good financial health, as its independent auditor has issued an unqualified opinion on its financial statements for 2024, 2023, and 2022, indicating that the statements present fairly its financial position and cash flows. The company has a strong cash position and substantial investments, suggesting it has adequate financial resources to support its operations and franchise system. There are no indications of going concern issues.
Financing Details
As of the FDD issuance date, Jazzercise does not currently offer any direct or indirect financing to its franchisees. However, it reserves the right to offer financing for the initial franchise fee in the future. Jazzercise also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
5,251
Franchised Units
5,251
Corporate Units
0
Avg Square Footage
2,100
Franchising Since
1982
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Jazzercise has two historical litigation cases. In 1987, Jazzercise settled a lawsuit with the State of New York regarding late franchise registration renewals and sales during inactive registration periods. This resulted in a consent decree requiring specific compliance and rescission offers. In 1985, Jazzercise also settled a lawsuit with the State of Wisconsin concerning unregistered franchise sales and alleged antitrust violations related to facility committees. As a result, Jazzercise was prevented from selling unregistered franchises and disbanded its facility committees. Jazzercise states that no other litigation is required to be disclosed beyond these two cases.
Bankruptcy History
Jazzercise has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, Jazzercise franchisees must sign Jazzercise's then-current Franchise Agreement, which may include different terms. They must be in full compliance with all their agreements, having paid all amounts owed, and meet current Jazzercise standards for the program, including making necessary updates to equipment, signage, and decor. Franchisees are also required to attend and satisfactorily complete any requested training or re-training, and sign a general release of claims against Jazzercise. They must not have received three or more default notices in any 24-month period, and Jazzercise must not have decided to withdraw from their geographic area. Additionally, franchisees need to have the right to occupy their current business premises for the renewal term and must have attended all mandatory meetings and training sessions, and consistently used Jazzercise's current branding and marketing materials. Franchisees must provide 120 days' notice if they wish to renew.
Training & Support Program
Franchisor Assistance
Jazzercise offers comprehensive support, beginning with pre-opening assistance that includes guidelines for facility selection, evaluation of proposed locations, help with promoting facilities and developing classes, and instruction in bookkeeping and general business operations. Franchisees receive an initial training program covering health, fitness, choreographed routines, and business procedures. Upon passing an audition, franchisees gain access to "The Studio," an online portal offering operating policies, ongoing training, marketing materials, and a discussion forum. For ongoing operations, Jazzercise continually produces and distributes new choreographed routines via video streaming (currently free) and online choreography notes. Class and business owners also get access to Jazzercise On Demand and the Simply Plated nutrition program, with potential revenue sharing. Jazzercise offers continuous training and support for choreography and business operations, maintains/updates The Studio, prepares promotional/advertising materials, creates brochures/flyers, provides accounting services for reports, protects trademarks, and handles public relations nationally and regionally (national appearances require franchisor coordination). Franchisees receive assistance with demonstrations, media contact, and general support through business advisors or support departments (including coordinating schedules and resolving disputes for Class/Business Owners). It also helps evaluate new locations, provides pricing guidance for merchandise, and conducts class performance evaluations (requesting digital files). A third-party software platform (Glofox) is provided for member management and registration. Franchisees are invited to optional regular franchise meetings.
Initial Training Hours
28
Training Location
Online/virtual
Ongoing Support
After opening, Jazzercise provides continuous training and support including new choreographed routines delivered via video streaming and online choreography notes. Class Owners and Business Owners receive access to Jazzercise On Demand and the Simply Plated nutrition program, which may involve revenue sharing. Jazzercise also offers ongoing business and choreography training, maintains "The Studio" online portal with operational updates and marketing materials, and prepares promotional and advertising content. It assists with accounting services, protects its trademarks, and conducts public relations activities. Franchisees can also get help with demonstrations and media outreach, and receive support from business advisors or support departments. New location proposals are evaluated, and pricing guidance for Jazzercise apparel is provided. Jazzercise may also evaluate class performance through digital recordings and provides a third-party software for member management. Franchisees are invited to optional regular franchise meetings.
Franchise Requirements
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
non-exclusive
Staffing Notes
Jazzercise has various franchisee types: class owners and associates who teach classes, and business owners who hire certified Jazzercise instructors. Class owners and associates must actively teach a minimum of four classes per month. Business owners do not teach themselves but are responsible for retaining certified Jazzercise instructors and managing arrangements with them. All instructors hired by franchisees must comply with their respective franchise agreements, and Jazzercise can require a franchisee to replace any instructor who does not meet policies or is in default. Franchisees are solely responsible for structuring arrangements with any assisting instructors.