Jazzercise Franchise Cost & Fees

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Description

Year Business Began: 1979 Franchising Since: 1982Headquarters: Carlsbad, CaliforniaEstimated Number of Units: 9,080Franchise Description: The franchisor is Jazzercise, lnc. The franchisor conducts a dance fitness program and licenses instructors to do so as well. The program’s aim is to promote total fitness through dance. Lnstructors lead classes through dance routines that are choreographed to popular tunes. lnstructors learn these dance routines from DVDs that the franchisor provides. ln addition, the franchisor operates a division called “Jazzercise Apparel” that distributes products such as clothing, accessories, equipment and visual recordings bearing the “Jazzercise” name and any other names the franchisor develops. Some instructors are class owners and sign a Franchise Agreement specific to class owners. Other instructors are associate instructors who only teach classes for other franchisees. Some instructors are licensed to conduct a dance fitness program consisting solely of less strenuous formats. Some instructors are licensed to conduct a dance fitness program limited to children’s programs. There are also business owner franchisees who offer Jazzercise dance fitness classes but do not teach the classes themselves.Training Overview: A Training Specialist will e-mail franchisees training materials before the initial training begins. Franchisees must review the materials and practice the routines before the initial training. If franchisees are a business franchisee they will not be sent a pre-training packet and no audition will be required; they must only attend the training. The 1-day training for all franchisees is conducted at selected locations throughout the country. Franchisees must complete the training program to the franchisor’s satisfaction. The franchisor will offer continuous training and supervision in the routines and in the operation of the business including the preparation and revision of policies and procedures on the Franchise Zone to assist franchisees in all phases of the business. The franchisor will also hold district meetings that franchisees may, but are not required to, attend at present. Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees or from other channels of distribution or competitive brands that the franchisor controls. Franchisees are granted a non-exclusive right to conduct the Jazzercise dance fitness program at designated facilities and on approved dates and times within a non-exclusive territory. Territories are a state or a portion of a state. Before franchisees begin offering or conducting a class or relocating a class, they must obtain the franchisor’s written consent.Obligations and Restrictions: Franchisees are the only individuals authorized to conduct the Jazzercise dance fitness program. Some instructors are only permitted to conduct a dance fitness program consisting solely of less strenuous routines, consisting solely of low impact routines or consisting solely of children’s programs. An instructor must be actively teaching, as periodically described by the franchisor in its Franchise Zone, in order to remain a franchisee. The minimum number of classes per month that an instructor must teach is currently four classes per month. Business franchisees do not act as instructors at all. Business franchisees are not permitted to teach classes at all and must make arrangements with other Jazzercise instructors to do so. If franchisees wish to do so, they may sell certain clothing, accessories, DVDs and other products which the franchisor makes available under the Jazzercise trademarks. Franchisees may not sell these products via the Internet. Franchisees are not permitted to vary the Jazzercise program or to add products or services which the franchisor does not authorize.Term of Agreement and Renewal: The length of the franchise agreement is five years. If franchisees meet certain conditions, they can enter into a renewal Franchise Agreement for an additional term of five years.Financial Assistance: The franchisor does not currently offer direct or indirect financing as of now. The franchisor does not guarantee a franchisee’s note, lease or obligation. Investment Tables: Estimated Initial Investment for an Associate Franchise Name of Fee Low High Initial Franchise Fee $1,250 $1,250 Associate Fee $0 $120 Insurance $175$275 Equipment $550 $700 Music $30 $55 Miscellaneous Opening Costs $400 $650 Additional Funds – 3 Months $0 $150 ESTIMATED TOTAL $2,405 $3,200 Initial Investment for a Class Owner or Business Franchise Name of Fee Low High Initial Franchise Fee $1,250 $1,250 Insurance $175 $275 Equipment $1,775$4,425 Music $30 $55 Marketing and Advertising $0 $2,000 Security Deposits$0$2,500 Miscellaneous Opening Costs $400 $650 Additional Funds – 3 Months $110 $6,000 ESTIMATED TOTAL $3,740 $17,155 Other Fees Type of Fee Amount Continuing Fee 20% of gross customer enrollment (10% for certain programs. Class owner franchise minimum currently $250 per month; business franchise minimum is $500 per month. Associate Fee Up to $300; currently $120.00 per year if paid in one lump sum or $12.00 per month if paid monthly Performance Royalties Varies, depending on organization and number of customers. Returning Franchise Fee $250 Re-certification Fee $625 Customer Reimbursement Fee Payment of the franchisor’s costs. Indemnification Payment of the franchisor’s losses and costs. Late Fee $50, but $10 for certain fees that are paid monthly Attorney’s Fees Reasonable attorney’s fees and costs. Advertising Contribution To be determined. Insurance Payment $175 to $275 The above information has been taken from the FDD of Jazzercise. Year of FDD: 2018Franchise Direct’s Disclaimer

Initial Investment for a Class Owner or Business Franchise
Name of Fee Low High
Initial Franchise Fee $1,250 $1,250
Insurance $175 $275
Equipment $1,775 $4,425
Music $30 $55
Marketing and Advertising $0 $2,000
Security Deposits $0 $2,500
Miscellaneous Opening Costs $400 $650
Additional Funds – 3 Months $110 $6,000
ESTIMATED TOTAL $3,740 $17,155