How To's
The Arthur Murray Dance Studio Franchise Cost
Established in 1913, Arthur Murray Dance Studio is one of the longest-running companies that teach dance and other similar services. In 1938, they opened their doors for franchises, and now, you can start a business teaching salsa, tango, swing, or mambo. We’ll show you how:
Franchise Description
The franchise allows you to open an Arthur Murray Dance Studio under Arthur Murray International, Inc. The studio offers dancing lessons for kids and adults alike. Franchisees can host dance competitions and other similar events.
Training
Arthur Murray Dance Studio requires its franchisees to already have experience in running a dance studio. This means that a training program is no longer needed. However, the franchisor has the option to require the franchisee or its manager to enroll and undergo a two to three-day training program before opening.
Territory
The franchisor has the right to approve where the studio will be located. Franchisees do not have exclusivity in the area they choose and maybe within the same region as other franchisees. The franchisor may designate a “market area” wherein you can open as many Arthur Murray Dance Studios as you want.
Obligations
The franchisor requires the franchisees’ full attention, time, and energy in operating the studio. They will submit to the franchisor’s direct control and supervision. You, as the franchisee, are required to conduct training programs for your staff.
The franchisor also requires you to sell all their products and services as long as they are authorized. The same goes for competitions they want to host.
Term of Agreement
The initial franchise length is two years but can be renewed for successive five-year terms on the then-current terms.
Financial Assistance
Arthur Murray Dance Studio franchise does not offer any type of financial assistance. On the other hand, franchisees are eligible for a Small Business Administration (SBA) loan through the SBA’s Franchise Registry Program.
Did You Know?
Let’s get to know Arthur Murray Dance Studio more with these fun facts:
- Arthur Murray Dance Studios is the second-oldest franchised company (after A&W Restaurants which began in 1919)
- There are 270 Arthur Murray Dance Studios in 22 countries around the world
- Its founder, Arthur Murray, was portrayed in an episode of the HBO television drama Boardwalk Empire.
- In the 1987 movie Dirty Dancing, Johnny Castle tells Baby that he got his start in dancing when Arthur Murray was looking for new dance instructors.
Your Investment
This is how much an Arthur Murray Dance Studio will cost you:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $12,500 | $100,000 |
| Leasehold Improvements | $10,000 | $50,000 |
| Furniture, Fixtures and Equipment | $2,000 | $18,000 |
| Video Tapes, Promotional Brochures, and Step Charts | $285 | $650 |
| Signs | $2,000 | $10,000 |
| Three Months’ Rent | $7,200 | $21,600 |
| Training Expenses | $0 | $5,000 |
| Additional Funds – 3 months | $0 | $20,000 |
| ESTIMATED TOTAL | $46,485 | $225,250 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | 5% – 10% of weekly gross receipts. |
| National Advertising Fund | Up to 2% of weekly gross receipts or other fair share. |
| Check Handling | $30 |
| Interest | Lesser of (i) 1.5% per month or (ii) highest applicable rate permitted by law. |
| Teaching Time Obligations | Then current reimbursement rate for lessons. |
| Contest Entry or Participation | $50 – $200 per person for one or two dinner/dance awards programs. |
| Audit | Reimbursement of costs and expenses. |
| Lobbying | $1,000 |
| Liquidated Damages (violation of rules) | $7,500 |
| Demand Note | $25,000 |
| Liquidated Damages (trademark infringement) | 25% of weekly gross receipts. |
| Curing Defaults | Will vary under circumstances. |
| Costs and Attorney’s Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
| Convention | Up to $250. |
| Database Software License Fee | $2,300 plus tax. |
| Administrative Fee | $100 per report past due. |
| Liquidated Damages (unauthorized participation) | Higher of (i) 25% of revenues or other consideration received in connection with the competition or event or (ii) $10,000 dollars. |
| Liquidated Damages (required meetings) | $1,000 per meeting or event. |
| Administrative Transfer Fee | $5,000 |
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