About Fred Astaire Dance Studios Franchise
Fred Astaire Dance Studios is one of the most recognized names in ballroom and social dance instruction, with a franchise history dating back to 1964.
The brand is backed by FADS Holding, LLC and offers dance lessons for all skill levels, from first time dancers to competitive performers.
Studios teach a full range of styles including ballroom, Latin, swing, and social dance.
Fred Astaire Dance Studios Franchise Cost & Fees
Minimum Investment
$208K
Average Investment
$907K
Maximum Investment
$1.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | Not applicable for Area Representative, as they receive compensation from franchisor's royalty fees. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | A specified percentage of your Royalty Compensation for the preceding week, subject to annual change. Current rates: 0.5% (2021), 0.75% (2022), 1% (2023). Max 2% after 2023. | National brand fund |
| Total Investment Range | $208,150 – $1,606,550 | Includes build-out, inventory, working capital |
The investment range of $208K–$1.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Not applicable for Area Representative, as they receive compensation from franchisor's royalty fees.) and marketing fee (A specified percentage of your Royalty Compensation for the preceding week, subject to annual change. Current rates: 0.5% (2021), 0.75% (2022), 1% (2023). Max 2% after 2023.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Area Representative Fee | $30,000 | $30,000 |
| Territorial Exclusivity Fee | $150,000 | $1,500,000 |
| Initial Training Fee | $0 | $5,000 |
| Travel Expenses to Training | $1,000 | $3,500 |
| Vehicle Leasing | $0 | $1,800 |
| Furniture, Fixtures and Equipment | $1,500 | $7,000 |
| Studio Management and Technology System | $1,000 | $3,000 |
| Signage and Graphics | $1,500 | $3,000 |
| Supplies and Accessories | $2,500 | $5,000 |
| Business Licenses | $500 | $2,500 |
| Technology Fee for 3 Months | $150 | $750 |
| Professional Fees | $2,500 | $10,000 |
| Insurance | $2,500 | $5,000 |
| Working Capital for 3 Months | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of $4,000 or 2% of the purchase price for a change of control transfer; $2,500 for non-change of control transfers. |
| Renewal Fee | 50% of your original Area Representative Fee. |
| Technology Fee | Currently, $50 per month for year 1; $75 per month for year 2; $100 per month for year 3 and subsequent years. Subject to annual change in $25 increments, max $250 per month. |
| Audit Fee | Our costs and expenses, including independent accountant and attorneys’ fees and related travel and living expenses. |
| Initial Licensing Fees | Then-current fee |
| PCI Compliance Program | Then-current fee |
| Optional Training Programs | Varies based on program |
| Remedial Training Fee | Currently estimated at $500 per day or partial day |
| Consulting Fee | Currently estimated at $500 per day or partial day, plus any travel and living expenses for each employee or agent |
| Continuing Business Education Fee | Reasonable, hourly market-rate fee. Currently estimated at $250 per hour per person trained. |
| Required Conferences | Reasonable registration fee |
| Product, Service, Supplier and Service Provider Review | Our reasonable cost of the inspection and our actual cost of testing the proposed product or evaluating the proposed service or service provider, including personnel and travel costs |
| Insurance | Cost and expenses of the premium plus a reasonable fee for our services in procuring the insurance |
| Local Marketing Spending Requirement | 2% of your Royalty Compensation for the previous calendar quarter |
| Advertising Cooperative | If a cooperative is formed in your area, you must pay the then-current fee for your regional or local advertising cooperative |
| Inspection | Our reasonable expenses incurred in inspecting your business (whether ourselves, through our employees, Area Representatives or agents), including travel and living expenses, wages and other expenses for our employees, Area Representatives and agents |
| Remedial Expenses | Our reasonable expenses incurred in correcting your operational deficiencies |
| Indemnification | Amount of our liabilities, fines, losses, damages, costs and expenses (including reasonable attorneys’ fees) |
| Enforcement Expenses | Our reasonable costs and expenses (including reasonable attorneys’ fees) incurred in enforcing our rights and remedies; our reasonable costs and expenses incurred in de-identifying your Area Business |
| Regional Competitions | $20 for each entry from Studios outside of your Territory |
| Interregional Competitions | Currently, $500 application fee plus $5 for each entry |
| Rewards Programs | Then-current fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 consecutive days |
| Classroom Training | 38 |
| On-the-Job Training | 0 |
| Training Location | Franchisor's offices in Enfield, Connecticut, or another designated location. On-site training for Pilot Studio is also required. |
| Additional Training | The franchisor may periodically conduct mandatory or optional training programs for Area Representatives, Operating Principals, or employees at its office or other designated locations. Mandatory training programs are provided at no charge, but travel and living expenses are the responsibility of the franchisee. Area Representatives and their Operating Principals are required to obtain 24 hours of business education every two years. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically a geographic area ranging from a city’s limits to a state’s boundaries. |
| Description | The Area Representative is granted a protected territory where the franchisor will not operate or license other Area Businesses or operate a Studio. However, the franchisor reserves the right to solicit and recruit prospects for Franchised Studios anywhere, including within the Area Representative's territory, and to sell products/services through alternative distribution channels, including inside the territory. The franchisor may also acquire and operate an existing Franchised Studio in the territory if the Area Representative declines to purchase it. The territory size is determined by population, demographics, median household income, and the number of Studios the franchisor believes the market can sustain. The Area Representative Agreement states, "You will not receive an exclusive territory." |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one (1) additional consecutive 10 year renewal term |
| Renewal Fee | 50% of your original Area Representative Fee |
| Renewal Conditions | To renew, the Area Representative must provide written notice 6-12 months before expiration, mutually agree on a revised Development Schedule, deliver a fully executed current Area Representative Agreement (which may have materially different terms), execute a general release of claims, substantially comply with the agreement terms, have no Event of Default, and pay the Renewal Fee 30 days before the initial term ends. |
| Transfer Fee | The greater of $4,000 or 2% of the purchase price for a change of control transfer; $2,500 for non-change of control transfers and transfers to entities for convenience of ownership. |
| Transfer Conditions | For a Control Transfer, conditions include paying a $4,000 non-refundable deposit, paying the transfer fee, satisfying all monetary obligations, being in compliance with the agreement, executing a general release, remaining liable for pre-transfer obligations, complying with noncompete/confidentiality, landlord consent for Pilot Studio lease transfer, transferee meeting qualifications and training requirements, transferee executing assignment and personal guaranty, transferee executing a new area representative agreement for a 10-year term, transferee upgrading Pilot Studio, transferee covenanting to operate Area Business/Pilot Studio, and franchisor determining purchase price/payment terms are acceptable and subordinate to transferee's obligations to franchisor. Permitted transfers (security interests, transfers to a trust, death/incapacity) have specific conditions and may waive the transfer fee. |
| Termination for Cause | The franchisor may terminate for cause if the Area Representative (or owner) makes material misrepresentations/omissions, fails to complete AR Training or open Pilot Studio by deadline, Pilot Studio closes, voluntarily suspends operations for 10+ days without consent, fails to communicate within 10 days after notice, fails to attend 2+ required conferences, fails to meet Development Schedule, materially defaults on related documents, makes unauthorized financial performance representations, violates franchise sales laws or FTC Order, fails CBE requirements, modifies disclosure documents/Studio Agreements without consent, represents authority to bind franchisor, receives unauthorized monies, abandons/surrenders Area Business, allows Studio to sign lease without approval, fails to consistently communicate, has a certain percentage of Territory Franchisees in default, is charged/convicted of certain crimes, commits dishonesty/fraud/misconduct, engages in harassing conduct, misuses Marks, uses unapproved marketing materials, discloses Confidential Information, makes an improper Transfer, violates noncompete covenants, becomes insolvent/bankrupt, fails to pay monies owed, is 60+ days past due to suppliers/creditors, fails to pay taxes, refuses inspection/audit, fails to make required visits/inspections, fails to file periodic reports, fails to provide access to Studio Management and Technology System, or defaults on other agreements with franchisor/affiliates. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, the Area Representative and its Owners may not directly or indirectly own, manage, be employed by, advise, make loans to, or have any interest in any competitive business (dance/performing arts instruction, gym, athletic club, or similar franchise grantor) in the United States. They also cannot divert business, solicit franchisor/affiliate employees, perform acts injurious to goodwill, or use vendor relationships for unauthorized purposes. After termination or expiration, for two years, they cannot be involved in any competitive business within their former Territory, any other Area Business's territory, or within a 25-mile radius of any operating/developing Studio. They also cannot directly solicit franchisor/affiliate/Area Business/franchisee officers, managers, or Astaire Pros for employment. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an Entity, an individual owner with at least 10% ownership interest must be appointed as the Operating Principal, with authority over all business decisions and power to bind the entity. The Operating Principal must be approved by the franchisor and satisfactorily complete required training. The Area Representative and Operating Principal must devote their best efforts to managing the Area Business and attend at least 2 National Competitions and Regional Competitions annually. Sufficient trained staff must be employed to support the Area Business and Territory Franchisees. |
| Required Suppliers | Area Representatives are required to purchase furniture, fixtures, signs, equipment, products, supplies, and services that meet franchisor specifications, are of a specific brand/model, are purchased from expressly approved suppliers, or from a single designated source (which may include the franchisor or its affiliates). FADS Distribution, Inc. is the sole approved supplier for proprietary studio management software and learning management systems. Area Representatives must also purchase marketing materials, certain electronic and computer equipment, manuals, and other equipment from designated suppliers or the franchisor/affiliates. |
| Supply Restrictions | Area Representatives must use only products and services approved in writing by the franchisor and offer specific mandatory products/services. They may not offer unapproved products/services. The franchisor reserves the right to change specifications, approve/disapprove suppliers, and designate single sources. The franchisor or its affiliates may derive revenue from these purchases. |
| Franchisor Revenue from Suppliers | In the last fiscal year ending December 31, 2021, the franchisor received $230,015 (2.3% of total revenue) from required purchases and leases of products/services by franchisees. The franchisor also received $19,934.49 (2% of total revenue) from commissions for services from approved service providers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor offers direct or indirect financing for the Territorial Exclusivity Fee to qualified Area Representatives. The amount and repayment period vary based on circumstances and creditworthiness. Financing decisions are at the franchisor's sole discretion. The franchisor does not finance the Area Representative Fee or other costs. If approved, Area Representatives and Owners must sign a promissory note and comply with security agreements, including waiving defenses, notice, demand, protest, redemption, appraisement, suretyship rights, set-off, recoupment or counterclaim. Financing is typically secured by first priority liens against business and personal assets, and personal guarantees are required from all owners. Interest rates vary based on cost of funds, credit quality, loan size, and market conditions. Prepayment penalties are generally not required. |
Fred Astaire Dance Studios Franchise Earnings — Item 19
Fred Astaire Dance Studios does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Fred Astaire Dance Studios does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Fred Astaire Dance Studios Litigation & Risk Flags
Clean Litigation RecordFred Astaire Dance Studios has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fred Astaire Dance Studios System Growth
Total Units
25
Franchised
25
Company-Owned
0
Fred Astaire Dance Studios currently operates 25 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 6 | 0 | 17 |
| 2020 | 5 | 0 | 22 |
| 2021 | 5 | 2 | 25 |
Transfers: 1 | Closures: 2
Public Figures (Item 18)
The following public figures are associated with this franchise: Fred Astaire
State Registrations
Registered in 8 states: CA, IL, MI, MN, NY, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$10.0M
Net Income
$2.6M
Total Assets
$17.7M
Audited by MP P.C. for year ending December 31.
Fred Astaire Dance Studios Franchise — FAQ
The total investment to open a Fred Astaire Dance Studios franchise ranges from $208,150 to $1,606,550, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Fred Astaire Dance Studios charges a royalty fee of Not applicable for Area Representative, as they receive compensation from franchisor's royalty fees. of gross sales, plus a A specified percentage of your Royalty Compensation for the preceding week, subject to annual change. Current rates: 0.5% (2021), 0.75% (2022), 1% (2023). Max 2% after 2023. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Fred Astaire Dance Studios Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Fred Astaire Dance Studios to ensure you have the most up-to-date version.
Fred Astaire Dance Studios does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Fred Astaire Dance Studios has been franchising since 1964. The FDD shows an investment range of $208,150-$1,606,550, a Not applicable for Area Representative, as they receive compensation from franchisor's royalty fees. royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $208,150 to $1,606,550 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Fred Astaire Dance Studios and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Fred Astaire Dance Studios or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com