FADS USA, Inc.^®

Retail • Year: 2026

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What Is FADS USA, Inc.?

FADS USA, Inc. is a franchisor that offers the opportunity to develop and operate FRED ASTAIRE DANCE STUDIOS® that provide dance and dance fitness classes. The operational model is brick-and-mortar, with studios typically occupying 2,000–4,500 square feet in freestanding buildings or in-line retail plaza spaces, and it serves individual consumers (B2C), targeting adults aged 18–75. The core service bundle is instructor-led dance and dance fitness classes delivered through the franchisor’s FADS System, including studio designs/trade dress, proprietary curriculum and programs, training, operations software and a booking/booking system.

FADS USA, Inc. Franchise: Pros and Cons

The franchise offers unusually strong onboarding and ongoing operational help, with a training and support score of 100 (top quarter for Retail), but it operates zero corporate-owned units (bottom 5% for Retail), which limits the franchisor’s ability to test ideas and maintain firsthand operational oversight.

Pros

Training and support score is 100 (top quarter for Retail), giving you unusually strong onboarding and ongoing operational support that speeds time-to-profitability.

Outlet terminations, non-renewals, franchisee-initiated judgments and settlements, and franchisor enforcement actions are all zero (well below typical for Retail), indicating low formal churn and fewer legal distractions for operators.

Manager-required equity is 0% (below typical), so you have flexibility to structure manager ownership and incentives without a mandatory equity requirement.

Cons

The franchisor operates zero corporate-owned units (bottom 5% for Retail), which limits their ability to test new ideas and maintain firsthand operational awareness.

There are 3 reacquired outlets (top 10% for Retail), which is unusually high and suggests past franchisees have exited the system more often than typical.

The initial franchise fee high range is $60,000 (top quarter for Retail), increasing the upfront capital you'll need compared with most peers.

Lawsuits & Legal Risk

82/100

NORMAL

FADS USA, Inc. - The Facts: In 2016 the company settled a Virginia action alleging sale of an unregistered franchise, paying modest sums and agreeing to comply, with no admission of liability. The Advice: Confirm current state registrations, review the Settlement Order and Item 4/state registration disclosures in the FDD, and consult franchise counsel.

Territory Protection

35/100

NORMAL

FADS USA, Inc. grants a protected, site-specific Territory sized by market density and demographics that confers studio rights for the approved Site but is not exclusive; rights are contingent on meeting performance quotas, and the franchisor retains e-commerce/alternative distribution rights and can develop nearby units without first refusal.

Training & Support

100

Excellent

FADS USA, Inc. provides a focused 37-hour training curriculum designed to prepare two individuals for launch. The program includes on-site launch support for operational readiness that is available for an additional fee, and franchisees are responsible for travel and living expenses.

How Much Do FADS USA, Inc. Franchise Owners Make?

FADS USA, Inc. franchise locations reported average gross sales of $777,196 and median gross sales of $639,457 in 2026, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$777,196

Median Gross Sales:

$639,457

High Gross Sales:

$3,791,243

Low Gross Sales:

$90,527

Sample Size:

222

Percent Attaining Average:

38.0%

Audit Status:

Unaudited

Franchise vs Corporate Performance: All outlets included in this Item 19 representation are franchised studios (company-owned studios are reported as zero). System growth in 2024 showed net additions: franchised studios increased from 246 to 261 (net +15), indicating continued expansion of the franchised base. The presented averages and medians therefore reflect franchised-studio results only, not company‑owned outlets.

Performance Variability Analysis: There is substantial variability across studios. For 2024 Mature Studios the mean gross revenue ($777,196) exceeds the median ($639,457), indicating a right‑skewed distribution driven by a small number of very high‑performing studios (top mature studio $3.79M). The range for Mature Studios is $90,526.91 to $3,791,243. Only 84 of 222 studios (38%) met or exceeded the reported average gross revenue, underscoring that the average is lifted by outliers and that fewer than half of studios achieve or exceed that mean.

Data Scope and Limitations: The figures are based on studio SWAR submissions and include only U.S. studios that (a) submitted SWARs for 52 weeks in 2024, (b) were in operation at least 12 months as of 12/31/2024, and (c) met other inclusion criteria; international studios and studios with deficient or incomplete SWARs were excluded. The franchisor states it (and its affiliates) did not independently audit or verify the SWAR data. The Item 19 does not provide cost of goods sold or net income figures, and studio pricing is not standardized across the system, so profitability metrics beyond gross revenue cannot be derived from the disclosed data.

Frequently Asked Questions

Is FADS USA, Inc. a good franchise to own?

Whether FADS USA, Inc. is a good franchise depends on your goals, experience, and local market. Key factors from the 2026 FDD: FADS USA, Inc. operates 261 locations, received a legal risk score of 82/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

How long does it take to break even with a FADS USA, Inc. franchise?

Break-even timelines for FADS USA, Inc. franchises are not disclosed in the 2026 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is FADS USA, Inc. a franchise or a corporate-owned business?

As of the 2026 FDD, FADS USA, Inc. operates 261 franchised locations and 0 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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