Arthur Murray Dance StudioFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Arthur Murray Dance Studio franchise requires a total initial investment of $71K – $252K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $716K[2]. SBA 7(a) loans show a 5.9% charge-off rate across 17 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $71K – $252K
- 21st pct Education
- Avg gross sales
- $716K
- 30th pct Education
- Royalty
- 5.0%
- 3rd pct Education
- Units
- 237
- 65th pct Education
- SBA default
- 5.9%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.4x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 1939. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $71K – $252K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $716K/year (median $634K).
- Verdict A (Top Quintile) with a risk score of 10/100. SBA loan charge-off rate of 5.9% across 17 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Arthur Murray International, Inc.
- Parent company
- AMII Acquisition, LLC
- Ultimate parent
- Clarion Capital Partners, LLC
- Incorporated in
- DE
- HQ
- 1077 Ponce de Leon Boulevard, Coral Gables, Florida 33134
- Auditor
- Templeton
- Audited financials
- Franchisor revenue
- $16.9M
- vs $15.4M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Arthur Murray Dance Studio franchisees operate ballroom and Latin dance instruction studios, offering group classes, private lessons, and social dance events to adult students. Day-to-day operations include instructor scheduling, student billing/collections, marketing, and managing studio facilities. Revenue is primarily generated through lesson packages, monthly memberships, and special events like showcases and competitions.
- CEO
- Gary Edwards
- Headquarters
- FL
- Founded
- 1913
- FDD year
- 2025
- States available
- 34
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $0 | $20K |
| Equipment, build-out, other | $46K | $207K |
| Total initial investment | $71K | $252K |
Source: Arthur Murray Dance Studio 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$114K
16.0% margin
Unlevered ROIC
67%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $71K – $252K
- Better than avg vs category
- Liquid capital req'd
- $0 – $20K
- Better than avg vs category
- Franchise fee
- $25K – $100K
- Better than avg vs category
- Royalty
- 5.0%
- Gross receipts · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $716K
- Per unit, per year
- Median gross sales
- $634K
- Item 19 type
- Quartiles (Gross Receipts)
- Sample size
- 216 units
- vs category median 14 · large
- Range (low → high)
- $72K→$2.1M
- Cohort dispersion (min → max)
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
Revenue is 4.4x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Education averages
How Arthur Murray Dance Studio Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 237
- Opened
- 11
- Last reporting year
- Closed
- 4
- Turnover rate
- 1.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +3.0%
- Net unit change last year
- 3-yr CAGR
- +5.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 33 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 17
- Loan volume
- $2.2M
- Median loan
- $80K
- 50th percentile
- Charge-off rate
- 5.9%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 94.1%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Arthur Murray Dance Studio's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Aging brand with regulatory baggage, opaque profitability metrics, stagnant unit growth, and recent franchisee disputes creates elevated risk despite protected territory.
Litigation (Item 3)
1 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $1,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Templeton
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 10 / 100 rating
- 01MINOR1980 FTC Consent Decree still active — indicates ongoing regulatory scrutiny for unfair/deceptive practices in sales and contracts
- 02MEDNo Item 19 (Average Net Income) disclosed — cannot verify profitability claims; $715K avg revenue without net income transparency is concerning
- 03MEDDeclining unit count (237 units, only 3.0% YoY growth) — suggests market saturation, franchisee struggles, or brand decline
- 04MINORRecent 2024 arbitration filing against Honolulu franchisee for unpaid royalties — signals enforcement issues and potential franchisee financial distress
- 05MINORHigh royalty burden (5-10% of weekly gross) on dance studio margins — may compress profitability significantly
- 06MED5-year term with no disclosed renewal rates or franchise failure data — unclear exit strategy for underperforming locations
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Market Area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 2 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and corporate
- Site selection
- joint
- POS system
- Agenda Master Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Agenda Master Software
Item 20 · call current owners
Franchisee Contacts
236 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Arthur Murray Dance Studio · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Arthur Murray Dance Studio franchise?
The total investment to open a Arthur Murray Dance Studio franchise ranges from $71K – $252K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Arthur Murray Dance Studio franchise owners earn?
According to Item 19 of the Arthur Murray Dance Studio FDD, the average gross sales per unit is $716K. The median is $634K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Arthur Murray Dance Studio's franchise failure rate?
Based on SBA 7(a) loan data, Arthur Murray Dance Studio has a charge-off rate of 5.9% across 17 loans, meaning 5.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Arthur Murray Dance Studio franchise locations are there?
As of their most recent FDD filing, Arthur Murray Dance Studio has 237 total units in the United States, including 225 franchised units and 0 company-owned units. 11 new units were opened in the latest reporting year.
Is Arthur Murray Dance Studio a good franchise to buy?
FranchiseVerdict rates Arthur Murray Dance Studio as a A-grade franchise with a risk score of 10 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.