You are the founder of Just Dance, a chain of children’s dance studios. You and your business partner started Just Dance to give children the unique environment of learning dance recreationally rather than competitively.
Just Dance studios are franchised. There are 100 locations and each offers a dance studio large enough to accommodate twenty-five children, an instructor and a dance assistant. The studios also have changing rooms, restrooms and a lobby with a studio assistant.
Dance instructors do not need to be professionals or even have past dance experience. Just Dance instructors receive the weekly dance class lesson plans via the company website that contains video and written instruction along with the music playlists for the classes.
Most dance studios for children focus on competition and instead of traditional dance routines, many blur the line between cheer, tumbling and dance. Their focus is on form and memorization of moves while Just Dance’s focus is having fun and exercising.
While each Just Dance studio does have two recitals each year, they are not the focus of classes and are not scored.
Just Dance has seen a significant decline in franchise growth. To own a Just Dance franchise, the requirements include a minimum net worth of $150,000/minimum liquidity of $50,000, franchise fee of $129,000, 7% royalty and 1% ad fund. The costliest investments are the building and construction fees which vary, but includes lease, décor, furniture, signage, paint and any construction needs.
Just Dance must operate in neighborhoods near schools or shopping centers to make it convenient for busy parents to transport their children. The price of leasing space large enough for a Just Dance has skyrocketed and many parties showing interest in the franchise have not purchased due to the cost of leasing space.
Your business partner wants you to determine how the company can promote franchise growth by offering an alternative format to the dance studio that will be less expensive to get Just Dance up and running. Your business partner wants you to identify which resource are truly needed, where start-up requirements can be cut and offer alternative channels for Just Dance classes.
