JazzerciseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Jazzercise franchise requires a total initial investment of $2K – $41K, including a $1K franchise fee and an ongoing 20.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 33.3% charge-off rate across 17 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $2K – $41K
- 0th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- 20.0%
- 69th pct Health & Fitn…
- Units
- 5,253
- 99th pct Health & Fitn…
- SBA default
- 33.3%
- 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
33.3% of SBA loans charged off across 17 loans, above the 16% franchise average.
Franchising since 1982. Systems this mature have refined operations and brand recognition.
Franchised units fell from 6196 to 5253 over 3 years. Investigate why operators are leaving.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $2K – $41K including a $1K franchise fee, 20.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 77/100. SBA loan charge-off rate of 33.3% across 17 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -10.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Jazzercise, Inc.
- Predecessor
- Judi Sheppard Missett
- Prior franchisor entity
- Incorporated in
- CA
- HQ
- 2460 Impala Drive, Carlsbad, California 92010-7226
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $19.9M
- vs $19.6M prior year
Overview
About
Franchisees operate fitness and dance exercise classes (typically aerobics/Jazzercise) in leased studio spaces, managing class schedules, instructor hiring, customer acquisition, and retention. Day-to-day operations involve teaching or coordinating classes, collecting enrollment fees, managing membership databases, and handling basic studio administration while remitting 20% of all enrollment revenue to corporate.
- CEO
- Shanna Missett Nelson
- Headquarters
- CA
- Founded
- 1979
- FDD year
- 2024
- States available
- 48
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $1K | $1K |
| Working capital (3–6 mo) | $0 | $18K |
| Equipment, build-out, other | $890 | $22K |
| Total initial investment | $2K | $41K |
Source: Jazzercise 2024 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
- $2K – $41K
- Better than avg vs category
- Liquid capital req'd
- $0 – $18K
- Better than avg vs category
- Franchise fee
- $625 – $1K
- Better than avg vs category
- Royalty
- 20.0%
- Gross Customer Enrollment Fees · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Total fee load | 20.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How Jazzercise Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,253
- Opened
- 255
- Last reporting year
- Closed
- 535
- Turnover rate
- 10.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -5.1%
- Net unit change last year
- 3-yr CAGR
- -10.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 255
- Closed (3yr)
- 535
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 256
- Franchisor's next-year forecast
- Ceased ops
- 10.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 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
- Illinois
- Michigan
- Rhode Island
- 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
- $2.3M
- Median loan
- $38K
- 50th percentile
- Charge-off rate
- 33.3%
- 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)
- 69.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 5
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Jazzercise'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.
A 33.3% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Jazzercise presents a CAUTION-to-HIGH RISK profile due to a declining franchisee base, missing financial disclosures, aggressive royalty structure on gross revenue, historical regulatory violations, and zero territorial protection in a competitive fitness market.
Litigation (Item 3)
2 case reference(s): 0 pending, 1 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
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 77 / 100 rating
- 01MINORDeclining unit count (-5.1% YoY from 5,253 units) indicates shrinking franchise system and potential market saturation
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI assessment and profitability validation
- 03MINORHigh royalty rate of 20% on gross enrollment fees creates significant ongoing burden with no revenue floor guaranteed
- 04MINORTwo separate state regulatory actions (NY 1987, WI 1985) for franchise law violations and antitrust issues signal historical compliance problems
- 05MEDUnprotected territory means unlimited franchisee competition within service areas and cannibalizing of revenue streams
- 06MINORLow initial investment ($2,140-$40,735) suggests low barriers to entry and high franchisee turnover risk
- 07MINOR5-year term with no territory protection creates renewal uncertainty and makes long-term business planning difficult
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 |
| Allowed renewalsℹ | 1 |
| Territory type | non_exclusive |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
2 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- POS system
- Jazzercise Business Center and Class Check-In System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Jazzercise Business Center and Class Check-In System
Item 20 · call current owners
Franchisee Contacts
690 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jazzercise · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jazzercise franchise?
The total investment to open a Jazzercise franchise ranges from $2K – $41K, with an initial franchise fee of $1K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Jazzercise franchise owners earn?
Jazzercise does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Jazzercise's franchise failure rate?
Based on SBA 7(a) loan data, Jazzercise has a charge-off rate of 33.3% across 17 loans, meaning 33.3% 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 Jazzercise franchise locations are there?
As of their most recent FDD filing, Jazzercise has 5,253 total units in the United States, including 6,196 franchised units and 0 company-owned units. 255 new units were opened in the latest reporting year.
Is Jazzercise a good franchise to buy?
FranchiseVerdict rates Jazzercise as a D-grade franchise with a risk score of 77 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 Jazzercise, 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.