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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, teaching 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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Copyright 2006 Goldrush Magazine, a division of the Rhee Gold Company and Gold Standard Press, LLC. Goldrush Magazine and Goldrush Online is published twelve times annually. No contents of Goldrush Magazine and Goldrush Online may not be duplicated in whole or in part without permission of the publisher. Inclusion in the Goldrush does not imply endorsement by Goldrush or its employees

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