FRANCHISE·WATCH·DESK

Verified — real FDD extraction

Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender

JAZZERCISE

Other · independent · est. —

Jazzercise is a dance-fitness franchise in which instructors lead choreographed group exercise classes blending dance, strength, and cardio. A franchisee is typically a certified instructor who teaches classes in rented studio or community space, earning revenue from class fees and memberships with very low overhead.

JAZZERCISE net unit count declined -3.1% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Showing strain

Distress

0
STABLE

The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.

Exit rate · latest year

7.6%

fiscal 2025, per Item 20

Cost to open

$2K–$64K

Item 7 total investment range

SBA loan defaults

23.5%

17 loans resolved — directional only

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Weak
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Weak

Systemwide units

2023–2025

-3.1%
5,25320235,25120245,0922025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 398 of 5,251 franchised outlets left the system — a 7.6% annualized exit rate. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start5,5335,2535,251
Opened255385239
Transfers000
Terminations482455
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons487363343
Outlets at end5,2535,2515,092
Net change-280-2-159

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 18 SBA-backed loans to JAZZERCISE franchisees since 1991. Only 17 have resolved so far — too thin for a reliable default rate, but 4 of them charged off.

Charge-off rate

17 resolved · too thin to rate

Loss given default

avg. charged-off $ ÷ approved $

Expected loss

default rate × loss severity

Avg. loan · FY2020+

$22,500

what recent franchisees borrowed

Median time to default

66 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

1 vs 1

distinct banks still lending

Charge-off rate by loan approval year (%)

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO JAZZERCISE BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $1K franchise fee (Item 5) and a total investment of $2K–$64K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.

To open (Item 7)

$2K–$64K

all-in investment range

Franchise fee (Item 5)

$1K

upfront, one-time

Royalty (Item 6)

20%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.

Royalty you'd pay / yr

$200K

20% of sales, before profit

Over a 10-yr term

$2M

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for JAZZERCISE with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Lower risk

Modeled from the public record, this brand looks safer than 82% of systems we score.

Risk percentile

18 / 100

Loan-corroborated

Modeled SBA charge-off

8.4%

Observed SBA charge-off

23.5%

Top drivers: System size (log units) (lowers) · Investment ceiling (log) (raises) · Royalty rate (lowers) · Net unit growth (raises). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for JAZZERCISE. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing JAZZERCISE's numbers, including talking you out of a bad deal.

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JAZZERCISE franchise questions, answered from the filings

What percentage of JAZZERCISE franchises closed last year?

In JAZZERCISE's latest FDD Item 20 (fiscal 2025), 398 of 5,251 franchised outlets left the system — an annualized exit rate of 7.6%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a JAZZERCISE franchise cost?

Per JAZZERCISE's 2026 FDD, buying in requires an initial franchise fee of $1K (Item 5) and a total initial investment of $2K–$64K (Item 7).

What royalty does JAZZERCISE charge?

JAZZERCISE charges an ongoing royalty of 20.0% of gross sales, per Item 6 of its 2026 FDD.

Does JAZZERCISE disclose earnings (Item 19)?

No — JAZZERCISE's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.

Is JAZZERCISE a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk