Jazzercise Franchise Cost, Revenue & Review 2026
- Investment
- $5K – $64K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 17 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Jazzercise is a dance-fitness franchise licensing instructors to teach its choreographed cardio program, plus apparel and on-demand workouts. Franchisees own and run classes as instructor-operators, from single sessions to full studios.
FranchiseVerdict summary · 2026
A Jazzercise franchise requires a total initial investment of $5K – $64K, including a $625 – $1K franchise fee and an ongoing 20.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $5K – $64K
- 1st pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 20.0%
- 92nd pct Health & Fitn…
- Units
- 5,092
- 99th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · 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 $5K – $64K including a $1K franchise fee, 20.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 61/100 (higher is better).
- GROWTHNegative: net -159 franchised outlets in the latest year (239 opened, 343 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Jazzercise, Inc.
- Predecessor
- Judi Sheppard Missett (sole proprietorship)
- Prior franchisor entity
- CEO title
- CEO and Director
- Shanna Missett Nelson
- Incorporated in
- California
- HQ
- 2460 Impala Drive, Carlsbad, California 92010-7226
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $20.2M
- vs $20.5M prior year
Overview
About
- CEO
- Shanna Missett Nelson
- Headquarters
- California
- Founded
- 1979
- FDD year
- 2026
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 91% 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 | $1K | $1K |
| Working capital (3–6 mo) | $250 | $19K |
| Equipment, build-out, other | $3K | $44K |
| Total initial investment | $5K | $64K |
Source: Jazzercise 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
- $5K – $64K
- Top 40% of category vs category
- Liquid capital req'd
- $250 – $19K
- Top 40% of category vs category
- Franchise fee
- $625 – $1K
- Top 40% of category vs category
- Royalty
- 20.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- No advertising fund established as of the FDD date; contr…
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Technology fee | $45 |
| Transfer fee | $100 |
| Total fee load | 20.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Jazzercise makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Jazzercise unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 20.0% — above the Health & Fitness median of 9.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -3.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 medians
How Jazzercise Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,092
- Opened
- 239
- Last reporting year
- Closed
- 343
- Terminated
- 55
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.1%
- Net unit change over 3 years
- 3-yr CAGR
- -3.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 55
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- 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).
Where the owners are · Item 20 owner list
171 current owners across 4 states; 519 former (terminated, transferred or not renewed) listed separately.
- WI 118
- MN 50
- IL 2
- CA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 17 loans
- Limited SBA coverage: 17 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 17 loans
- 5-yr charge-off
- Limited · 17 loans
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 5
- Typical loan rate
- 4.7%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- n=7,965 loans
- Jobs supported
- 45
- 2.2 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Top lenders financing Jazzercise franchisees
Showing 3 of 14 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Jazzercise from SBA 7(a) FOIA data.
- Principal loss rate
- 5.5%
- Avg SBA guarantee
- 76%
- Avg interest rate
- 4.66%
- Avg chargeoff amount
- $28K
- Lender concentration
- 14.3%
- Job velocity
- 2.2 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 45
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 2 | $48K | 50.0% |
| 2 | First Bank | 1 | $8K | 100.0% |
| 3 | BMO Bank National Association | 1 | $26K | 0.0% |
| 4 | First-Citizens Bank & Trust Company | 1 | $888K | 0.0% |
| 5 | Zions Bank, A Division of | 1 | $438K | 0.0% |
| 6 | Wells Fargo Bank National Association | 1 | $36K | 0.0% |
| 7 | Randolph-Brooks FCU | 1 | $40K | 100.0% |
| 8 | Business Loan Center, LLC | 1 | $358K | 0.0% |
| 9 | Bank of America, National Association | 1 | $50K | 0.0% |
| 10 | Federal Deposit Insurance Corporation | 1 | $60K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MOMissouri | 2 | 1 | 50.0% |
| NENebraska | 2 | 0 | 0.0% |
| TXTexas | 2 | 1 | 50.0% |
| AZArizona | 1 | 0 | 0.0% |
| CACalifornia | 1 | 0 | 0.0% |
| GAGeorgia | 1 | 1 | 100.0% |
| MDMaryland | 1 | 0 | 0.0% |
| MIMichigan | 1 | 0 | -- |
| NDNorth Dakota | 1 | 1 | 100.0% |
| NMNew Mexico | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two historical government enforcement actions: (1) 1987 New York consent decree over late FDD renewal filing and franchise sales during lapse; (2) 1985 Wisconsin stipulated judgment over unregistered franchise sales and antitrust claims related to location committees (since disbanded). No other required disclosures.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor (parent-company) revenue, net, for FY2025; not a per-unit franchisee revenue figure.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 61 / 100 verdict
- 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
- 06MINOR5-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
Litigation case detail2 matters · Item 3
Litigation cases
The franchisor
Concluded (2)
State of Wisconsin v. Jazzercise, Inc.
judgmentGovernment or regulatory action · filed 1985 · Dane County Circuit Court, Wisconsin · 85CV4401
“This stipulation followed a lawsuit brought by the State of Wisconsin, Department of Justice, against Jazzercise filed on or about August 26, 1985. This lawsuit alleged violations of the State of Wisconsin’s securities laws for offering for sale and selling franchises without being registered by the Wisconsin Securities Commissioner and for alleged antitrust violations”Page 13 of the 2026 FDD, Item 3
State of New York v. Jazzercise, Inc.
concludedGovernment or regulatory action · Supreme Court (State of New York) · Index No. 41418/87
“State of New York v. Jazzercise, Inc. (State of New York, Index No. 41418/87 in the Supreme Court). In April 1987, Jazzercise entered into a consent decree to settle an action that arose out of its failure to timely file its renewal application and the sale of franchises after the expiration date and before renewal.”Page 13 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 20.0% 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 | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | State or portion of a state (non-exclusive) |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Carlsbad, California (city where Jazzercise's headquarters is then located) |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
Two historical government enforcement actions: (1) 1987 New York consent decree over late FDD renewal filing and franchise sales during lapse; (2) 1985 Wisconsin stipulated judgment over unregistered franchise sales and antitrust claims related to location committees (since disbanded). No other required disclosures.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- Online
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee, subject to Jazzercise's written consent
- Franchisor financing
- Not offered
- Item 10
- 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
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 $5K – $64K, 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Jazzercise?
Jazzercise is franchised by Jazzercise, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Jazzercise 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 Jazzercise FDD and qualifies whose outlets they describe.
What is Jazzercise's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Jazzercise (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 Jazzercise franchise locations are there?
As of their most recent FDD filing, Jazzercise has 5,092 total units in the United States, including 5,092 franchised units and 0 company-owned units. 239 new units were opened in the latest reporting year.
Is Jazzercise a good franchise to buy?
FranchiseVerdict rates Jazzercise as a B-grade franchise with a verdict score of 61 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.