Fred Astaire Dance StudiosFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A FRED ASTAIRE DANCE STUDIOS franchise requires a total initial investment of $296K – $658K, including a $35K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $777K[2]. SBA 7(a) loans show a 6.1% charge-off rate across 33 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $296K – $658K
- 56th pct Health & Fitn…
- Avg gross sales
- $777K
- 41st pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 261
- 93rd pct Health & Fitn…
- SBA default
- 6.1%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness 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
Franchising since 1995. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $296K – $658K including a $35K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $777K/year (median $639K).
- Verdict A (Top Quintile) with a risk score of 48/100. SBA loan charge-off rate of 6.1% across 33 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 16.0% CAGR over 3 years with 261 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- FADS USA, INC.
- Parent company
- Fred Astaire Dance of North America, Inc. (FADNA)
- Incorporated in
- DE
- HQ
- 155 Hazard Avenue, Suite 8, Enfield, Connecticut 06082
- Auditor
- MP P.C.
- Audited financials
- Franchisor revenue
- $16.3M
- vs $19.2M prior year
Overview
About
Franchisees operate dance instruction studios offering ballroom, Latin, swing, and other partner dance classes to adult students. Day-to-day activities include teaching group/private lessons, managing student retention and enrollment, handling studio operations, and executing marketing locally under Fred Astaire's brand guidelines.
- CEO
- Luann Pulliam
- Headquarters
- CT
- Founded
- 1995
- FDD year
- 2025
- States available
- 31
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $50K | $70K |
| Equipment, build-out, other | $211K | $553K |
| Total initial investment | $296K | $658K |
Source: FRED ASTAIRE DANCE STUDIOS 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
$225K
29.0% margin
Unlevered ROIC
42%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $296K – $658K
- Near category avg vs category
- Liquid capital req'd
- $50K – $70K
- Below avg, review vs category
- Franchise fee
- $35K – $60K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $4K |
| Renewal fee | $18K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $777K
- Per unit, per year
- Median gross sales
- $639K
- Item 19 type
- gross_sales
- Sample size
- 222 units
- vs category median 11 · large
- Range (low → high)
- $91K→$3.8M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Fred Astaire Dance Studios Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 261
- Opened
- 19
- Last reporting year
- Closed
- 4
- Turnover rate
- 1.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +6.1%
- Net unit change last year
- 3-yr CAGR
- +16.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 15
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 33
- Loan volume
- $12.3M
- Median loan
- $210K
- 50th percentile
- Charge-off rate
- 6.1%
- 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)
- 83.3%
- 5-yr charge-off
- 100.0%
- Loans approved 2021+
- Active lenders
- 18
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Fred Astaire Dance Studios'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 13 states
- Startup risk premium and job creation velocity
- 11-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
Mature dance studio franchise with legacy regulatory baggage, undisclosed profitability, and slow growth raises concerns about market saturation and franchisee earning potential.
Audited financials (Item 21)
Yes · MP P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 48 / 100 rating
- 01MINORNo Item 19 (Average Unit Volume) disclosure — unable to validate $777K average revenue claim or compare to your investment payback period
- 02MINORModest unit growth of 6.1% YoY suggests market saturation or franchisee churn in a mature 261-unit system
- 03MINORHistorical FTC consent order (1964/1989) for sales practices and 2016 Virginia settlement indicate regulatory compliance issues with franchise sales tactics
- 04MINORHigh investment range ($296K–$658K) creates wide performance variance; without net income data, ROI timeline is opaque
- 05MINOR7% royalty on gross revenue (not net) penalizes high-volume, low-margin operators
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Area-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Connecticut |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 12 hrs
- POS system
- Studio Management and Technology System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Studio Management and Technology System
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
FRED ASTAIRE DANCE STUDIOS · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a FRED ASTAIRE DANCE STUDIOS franchise?
The total investment to open a FRED ASTAIRE DANCE STUDIOS franchise ranges from $296K – $658K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do FRED ASTAIRE DANCE STUDIOS franchise owners earn?
According to Item 19 of the FRED ASTAIRE DANCE STUDIOS FDD, the average gross sales per unit is $777K. The median is $639K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is FRED ASTAIRE DANCE STUDIOS's franchise failure rate?
Based on SBA 7(a) loan data, FRED ASTAIRE DANCE STUDIOS has a charge-off rate of 6.1% across 33 loans, meaning 6.1% 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 FRED ASTAIRE DANCE STUDIOS franchise locations are there?
As of their most recent FDD filing, FRED ASTAIRE DANCE STUDIOS has 261 total units in the United States, including 190 franchised units and 0 company-owned units. 19 new units were opened in the latest reporting year.
Is FRED ASTAIRE DANCE STUDIOS a good franchise to buy?
FranchiseVerdict rates FRED ASTAIRE DANCE STUDIOS as a A-grade franchise with a risk score of 48 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.
For franchisors
Are you the franchisor?
If you represent FRED ASTAIRE DANCE STUDIOS, you can request corrections or provide updated information.
Claim this brandOther Health & Fitness franchises
Compare similar franchise opportunities in the Health & Fitness category
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.