Bottom line
- Total investment $54K – $263K including a $36K franchise fee.
- Average unit revenue of $119K/year (median $110K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- System growing at 68.0% CAGR over 3 years with 46 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one DivaDance unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 DivaDance units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$549K
on $2.7M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
Overview
About
DivaDance franchisees operate dance instruction studios offering classes in various dance styles (likely hip-hop, contemporary, ballet, jazz) to children and adults. Day-to-day operations include scheduling instructors, managing student enrollment, conducting classes, maintaining studio facilities, and handling billing and customer retention.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
DivaDance presents moderate-to-cautious risk due to undisclosed profitability data, aggressive growth metrics that may mask unit quality issues, and unclear royalty fee floor obligations.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate profitability claims against $119,291 average revenue
- 02MINORHigh royalty structure (10% of gross sales OR minimum monthly fee) creates cash flow pressure on lower-revenue locations
- 03MINORRapid unit growth (40% YoY) may indicate aggressive recruitment masking underlying unit economics or retention issues
- 04MINORWide investment range ($54K–$263K) suggests inconsistent startup costs and unclear capital requirements across locations
- 05HIGHNo going concern statement disclosure raises questions about franchisor financial stability and long-term viability
- 06MINORMinimum monthly royalty fee not specified — creates hidden cost risk if gross sales fall below break-even threshold
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
48 numbers
One-time purchase · CSV download · Validation questions included
FDD download
DivaDance · FDD (2025) PDF