DivaDance Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
DivaDance is a dance fitness franchise offering choreography-based, pop-music dance classes and full-body cardio workouts for adults. Franchisees run programs from studios or partner venues, managing instructors, classes, and enrollment.
FranchiseVerdict summary · 2026
A DivaDance franchise requires a total initial investment of $57K – $149K, including a $36K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $94K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $57K – $149K
- 8th pct Health & Fitn…
- Avg gross sales
- $94K
- 0th pct Health & Fitn…
- Royalty
- 10.0%
- 73rd pct Health & Fitn…
- Units
- 43
- 67th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $57K – $149K including a $36K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage unit revenue of $94K/year (median $71K).
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- FLAG4 units terminated last reporting year (9.3% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- DivaDance Company
- CEO title
- Founder and Chief Executive Officer
- Jami Stigliano Andosca
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Texas
- HQ
- 3823 Airport Boulevard, Suite D, Austin, Texas 78722
- Auditor
- Kezos & Dunlavy, LLC
- Audited financials
- Franchisor revenue
- $2.4M
- vs $2.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Jami Stigliano Andosca
- Headquarters
- Texas
- Founded
- 2015
- FDD year
- 2026
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 82% below the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $36K | $36K |
| Working capital (3–6 mo) | $3K | $16K |
| Equipment, build-out, other | $18K | $97K |
| Total initial investment | $57K | $149K |
Source: DivaDance 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $57K – $149K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $16K
- Top 40% of category vs category
- Franchise fee
- $36K
- Top 40% of category vs category
- Royalty
- 10.0%
- formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $50 |
| Training fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $2K – $5K |
| Total fee load | 12.0% of rev |
What do units actually make?
Average unit sales run 85% below the health & fitness norm.
Source: FDD 2026 · Item 19
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
$24K
26.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.6 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one DivaDance unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
22%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
$356K
on $1.8M purchase
Total debt
$1.4M
SBA $0.9M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $94K
- Per unit, per year
- Median gross sales
- $71K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- average median high low gross sales
- Sample size
- 28 franchisees
- vs category median 12 · large
- Range (low → high)
- $30K→$276K
- Cohort dispersion (min → max)
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $94K/year in gross sales. Median is $71K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 12.0% — above the Health & Fitness average of 8.4%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 42.9% CAGR over 3 years across 43 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness averages
How DivaDance Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 25
- Last reporting year
- Closed
- 6
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Multi-unit owners
- Outlier
- Reported value implausible. See FDD Item 20
- Net growth (3-yr)
- +42.9%
- Net unit change over 3 years
- 3-yr CAGR
- +42.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 12
- Franchisor's next-year forecast
- Transfer rate
- 15.2%
- Owners selling to other franchisees
- Termination rate
- 2.2%
- Franchisor-initiated terminations
- Ceased ops
- 2.2%
- Units that stopped operating
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 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $218K
- Median loan
- $70K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (3 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $540,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 45 / 100 verdict
- 01MINORHigh royalty structure (10% of gross sales OR minimum monthly fee) creates cash flow pressure on lower-revenue locations
- 02MINORRapid unit growth (40% YoY) may indicate aggressive recruitment masking underlying unit economics or retention issues
- 03MINORNo going concern statement disclosure raises questions about franchisor financial stability and long-term viability
- 04MINORMinimum 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
What are you signing up for?
Ongoing fees run about 12.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 225,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Travis County, Texas (or nearest suitable location to franchisor's corporate headquarters) |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 55 hrs
- Training location
- Virtual (weekly Zoom meetings) with confidence camp training at Austin, Texas training facility and at Dedicated Studio/Third-party Studio Partnership Site
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee_selects_franchisor_approves
- Franchisor financing
- Offered
- Item 10
- POS system
- Mindbody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mindbody
Item 20 · call current owners
Franchisee Contacts
48 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DivaDance · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DivaDance franchise?
The total investment to open a DivaDance franchise ranges from $57K – $149K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DivaDance franchise owners earn?
According to Item 19 of the DivaDance FDD, the average gross sales per unit is $94K. The median is $71K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the DivaDance FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the DivaDance FDD and qualifies whose outlets they describe.
What is DivaDance's franchise failure rate?
SBA 7(a) loan charge-off data is not available for DivaDance (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many DivaDance franchise locations are there?
As of their most recent FDD filing, DivaDance has 43 total units in the United States, including 40 franchised units and 3 company-owned units. 25 new units were opened in the latest reporting year.
Is DivaDance a good franchise to buy?
FranchiseVerdict rates DivaDance as a C-grade franchise with a verdict score of 45 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.