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.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 17 loans (below the industry average).
- 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
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 Jazzercise unit return on the cash you put in?
Unlevered ROIC · per unit
372%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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.
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.
Score breakdown · what drove the 56 / 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
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Jazzercise · FDD (2024) PDF