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Franchise
Freedom
By Mandy Murray
Dance studio franchises can offer school owners business
basics and recognition
What is a franchise, and why would someone want to franchise a
dance studio? It’s simple—dance teachers are in the business
because they love dance, and they all have a common goal: to
enrich the lives of the dancers who surround them. Franchising
provides an opportunity to do just that.
Becoming a franchisor isn’t easy. It takes someone with years
of experience who has made all the mistakes and learned the
hard way how to be successful. Only a few dance studios offer
franchising, for example: Ohiobased Webby Dance, which has 10
franchises in 3 states (www.webbydancecompany.com), and
Utah-based STARS National Dance Program, which has 34
franchises in 8 states (www.starsdance.com). Franchising takes
a big commitment. Those who do it incur the legal fees and
maintenance associated with owning a franchise company and the
responsibility of offering support services to their
franchisees.
What does it mean to be part of a franchise? STARS, for
example, offers a complete system that allows dancers or
entrepreneurs nationwide to run successful studios. The
company gives its franchisees guidelines on how to run their
businesses, but each studio is exclusive to its owner. They
all use the same logos, training manuals, business systems,
and decor; however, each owner determines what the school’s
class schedule is and which dance genres are taught. The
majority of STARS studios offer Mommy & Me, jazz, ballet, and
lyrical classes (and sometimes more). The national
headquarters maintains a website for all STARS dancers to chat
and shop on. Its regional and national competitions, open to
franchise schools only, are team-building events intended to
foster healthy competition among the dancers.
The benefits of franchising are numerous. First, there is
strength in numbers. The franchisees, along with the parent
company, can bounce ideas
off each other about choreography ideas, tea ching
methods, and ways to create a more successful
studio. Franchising provides business owners
with the in-depth “know how” to run a successful dance busi-
ness and artistic program. They have access to the knowledge
and systems that will help them run their businesses, allowing
them to have more free time for themselves and their families.
The franchise name can become a powerful identity that the
public respects. A brand and an image become known in multiple
communities. It’s like having a Mrs. Field’s cookie—no matter
where you are, you know this brand and love what you get.
Imagine if dance studios could become this well known in
various parts of the world!
Franchising has a downside, too, primarily for the parent
company. It needs to select qualified applicants to join the
group, since the brand needs to maintain its image. As for
franchisees, they need to be team players and willing to
maintain the standards of the brand.
How do you purchase a franchise? STARS offers them for
$10,000, which includes all of the training manuals and a
two-day training session with the national staff about how to
run the business. The company provides ongoing training,
annual workshops, monthly newsletters, quarterly choreography
videos, and a national staff that’s available for help. Most
franchises require a royalty fee (typically 10 to 20 percent
of the gross profits), but instead STARS charges a monthly fee
of $110.
Webby, whose franchises offer dance lessons in childcare
centers, charges $20,000 for the franchise plus the territory
fee. In addition, business owners pay an 8 percent royalty fee
and a 1 percent advertising fee each month.
Franchising can allow you to live your dream of being a studio
owner. With a business system in place, you will not have to
focus on working to establish yourself; instead, you’ll put
your energies into developing projects that are important to
you, in a business that already works.
Note: Mandy Murray is marketing and sales director for STARS
National Dance Program.
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