Bottom line
- Total investment $176K – $365K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $245K/year. Estimated payback in 2.6 years.
- Rated MODERATE with a risk score of 55/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Fly Dance Fitness unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Fly Dance Fitness units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.4M purchase
Total debt
$4.3M
SBA $2.7M + senior + seller note
Overview
About
Franchisees operate boutique dance fitness studios offering group classes (e.g., hip-hop, Latin, cardio dance) and potentially personal training. Day-to-day duties include instructor scheduling, class marketing, member retention, facility management, and P&L oversight in a competitive leisure market.
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 · 9 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit franchise with unverified financial claims, no comparable franchisee data, and unproven system scalability creates material due diligence risk.
Score breakdown · what drove the 55 / 100 rating
- 01MEDOnly 1 disclosed unit makes validation impossible — no system track record or comparable performance data
- 02MINORNo Item 19 financial performance representation — claimed $244,587 avg revenue and $105,315 net income are unverified and potentially cherry-picked
- 03MINORHigh investment-to-net-income ratio (1.68x–3.47x payback period) with unproven scalability across multiple locations
- 04MEDRoyalty structure (6% + operating costs) leaves limited margin for error in a discretionary fitness market with high churn
- 05MINORUnknown growth trajectory — single unit provides no evidence of system expansion, franchisee recruitment success, or retention
- 06MINORFitness franchise category has historically high failure rates; dance/boutique fitness segment saw consolidation 2020–2023
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Fly Dance Fitness · FDD (2025) PDF