Jazzercise Franchise Cost, Revenue & Review 2026
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]. The 2026 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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $5K – $64K
- 1st pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 20.0%
- 76th pct Health & Fitn…
- Units
- 5,092
- 99th pct Health & Fitn…
- SBA charge-off
- 33.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · 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.
- RETURNSFranchisor (parent-company) revenue, net, for FY2025; not a per-unit franchisee revenue figure.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better). 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, 2010–2025).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 94% 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 · 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Jazzercise unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
255%
Above the 30–60% band. Verify revenue is per-unit average
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
Franchisor (parent-company) revenue, net, for FY2025; not a per-unit franchisee revenue figure.
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 average of 8.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Jazzercise Compares
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
3-year detail · Item 20
- Opened (3yr)
- 255
- Closed (3yr)
- 487
- Terminated (3yr)
- 48
- 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)
- 66.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 5
- Typical loan rate
- 4.7%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand above franchise avg ↑
- 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.
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.
What could kill this investment?
SBA loans charge off at 33.3% — 108% above the 16.0% national norm, i.e. higher lender-observed risk.
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.
Litigation (Item 3)
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)
ⓘ 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 48 / 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
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 | none |
| 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
FDD download
Jazzercise · FDD (2026) 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 $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 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 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?
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 5,092 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 48 out of 100 (higher is better), 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?
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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.