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Description
Investment Icon

What Are the Initial Investment Requirements for a Jazzercise Franchise?

To become a Jazzercise franchisee, you will need to prepare for an initial investment ranging from $2,140 to $40,735. This includes a franchise fee of $1,250. It's essential to have cash readily available within this range and meet a net worth requirement of $75,000 to $150,000. These financial prerequisites ensure that franchisees have the necessary resources to start and sustain their business.

Fees Icon

What Are the Ongoing Fees for a Jazzercise Franchise?

As a Jazzercise franchisee, you will be subject to ongoing fees, including a royalty fee of 10% on gross sales and a marketing fee of 10%. These fees are crucial for maintaining brand presence and supporting marketing initiatives. Understanding these costs will help you budget effectively and ensure your franchise remains profitable.

Revenue Icon

What Is the Average Revenue Potential for a Jazzercise Franchise?

The average annual revenue per unit for Jazzercise franchises is approximately $19,382,109, with a median revenue of $18,900. Revenue can vary significantly, with the lowest reported annual revenue at $12,000 and the highest reaching up to $300,000. This range highlights the potential for profitability depending on factors such as location, marketing efforts, and operational efficiency.

Breakeven Icon

How Quickly Can You Expect to Break Even with a Jazzercise Franchise?

Franchisees can typically expect to reach their breakeven point within 12 months of opening. Additionally, the investment payback period is around 18 months. These timelines are encouraging for aspiring franchisees, indicating that with effective management and marketing, a Jazzercise franchise can become a profitable venture relatively quickly.

Jazzercise Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$75,000 - $150,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

18 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$1,250
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

10%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

10%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$2,140 - $40,735
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$2,140 - $40,735
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$3,695
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$18,900
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$300,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$12,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Fitness Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Fitness Classes
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Judi Sheppard Missett
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

2460 Impala Drive, Carlsbad, California 92010-7226
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1979
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Jazzercise, Inc.

Jazzercise Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

5253
The number of locations owned by independent franchisees.

Franchised Units i

5253
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 5844 5533 5253
Net Change YoY -311 -280
Franchised Units 5844 5533 5253
Net Change YoY -311 -280
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Initial Investment

The Jazzercise franchise offers a range of initial investment options, with a low starting point of $2,140 and a high of $40,735. This flexibility allows aspiring franchisees to assess their financial readiness and choose a suitable entry point based on their individual circumstances.

Potential About

Franchise Fees

The initial franchise fee for a Jazzercise unit is set at $1,250. Additionally, franchisees are required to pay a royalty fee of 10% of gross sales and a marketing fee of 10%. These fees contribute to the ongoing support and brand development provided by the franchisor.

Metrics About

Revenue Potential

Jazzercise franchisees can expect varying revenue outcomes. The average annual revenue per unit is approximately $19,382,109, while the median stands at $18,900. The lowest reported annual revenue is $12,000, with some units achieving as high as $300,000, indicating significant income potential depending on location and management.

Fees About

Breakeven and Payback

Franchisees can anticipate a breakeven period of around 12 months, allowing them to recover their initial investment relatively quickly. The investment payback period is estimated at 18 months, which provides a clear timeline for financial planning and expectations.

Breakeven About

Franchise Growth

The Jazzercise franchise has seen a gradual decline in the number of franchised units over the past three years, dropping from 5,844 in 2021 to 5,253 in 2023. Despite this trend, the franchise remains a recognizable brand in the fitness industry, offering opportunities for new entrants to capitalize on its established reputation.

Units About

Operational Expenses

Franchisees should prepare for annual operating expenses totaling approximately $6,417. Key costs include marketing and advertising ($3,525), insurance ($252), and equipment ($2,000). Understanding these expenses is crucial for effective budgeting and financial management within the franchise model.

Frequently Asked Questions

The initial investment for a Jazzercise franchise ranges from $2,140 to $40,735. This includes the initial franchise fee of $1,250 and other startup costs.