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How much does Fly Dance Fitness cost?
Initial Investment Range
$176,266 to $365,433
Franchise Fee
$35,600
As a Fly Dance Fitness franchisee, you will operate a dance fitness studio under the Fly Dance Fitness marks.
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Fly Dance Fitness April 30, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Fly Dance Fitness Franchising, LLC's (Fly Dance Fitness) 2023 audited financials show a net loss of over $60,000 on zero revenue and a negative net worth of ($11,151). The FDD explicitly discloses its financial condition as a special risk, and several states have required that your initial fees be deferred due to the franchisor's weak capitalization. This indicates a significant risk that the company may be unable to provide promised support or remain solvent, as it appears reliant on new franchise sales for operating cash.
Potential Mitigations
- Your accountant must review the franchisor's financial statements, including the negative net worth and lack of operating revenue.
- A franchise attorney should explain the implications of the state-mandated fee deferrals and what protections they may or may not offer you.
- A business advisor can help you assess the heightened risk of investing in a financially weak and newly-formed franchisor.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 20 data shows that as of the end of the last fiscal year, no franchised outlets had opened or closed, so there is no history of franchisee turnover to analyze. High turnover is a critical red flag in established systems, often indicating problems with profitability, support, or the business model itself. You should monitor this data in future FDDs as the system grows.
Potential Mitigations
- As the system develops, it will be crucial for your accountant to analyze future FDDs to track franchisee turnover rates.
- Engaging a business advisor to assess the health of the franchise system as it matures can provide valuable insights.
- Maintaining open communication with other franchisees will be important for understanding their satisfaction and operational challenges.
Rapid System Growth
Medium Risk
Explanation
The franchisor is new, with zero operating franchises at the end of 2024, but projects opening 16 in the next year. This aggressive growth plan, combined with the company's disclosed negative net worth and lack of experience supporting a franchise network, presents a considerable risk. The franchisor's limited financial and human resources could be strained, potentially leading to inadequate site selection support, training, and ongoing assistance for you and other new franchisees.
Potential Mitigations
- Discuss the franchisor's specific plans for scaling its support staff and systems to match this rapid growth with your business advisor.
- Your accountant should review how the company's weak financial position might impact its ability to fund this expansion.
- Ask your attorney about negotiating for stronger, more specific support commitments in your franchise agreement.
New/Unproven Franchise System
High Risk
Explanation
Fly Dance Fitness is a new franchisor, having started offering franchises in May 2023 with no operating franchised units to date. The system is based on a single affiliate-owned location. The FDD explicitly highlights its "Short Operating History" as a special risk. Investing in a new, unproven system like this carries higher-than-average risk regarding the viability of the business model, the effectiveness of its support systems, and the overall stability of the franchisor.
Potential Mitigations
- Extensive due diligence is essential; your business advisor should help you thoroughly investigate the performance of the single affiliate location.
- Your attorney can help you seek more favorable contract terms to compensate for the higher risk associated with an unproven system.
- An accountant should carefully scrutinize financial projections, as there is no historical data from other franchisees to rely upon.
Possible Fad Business
Medium Risk
Explanation
The business is a specialized "dance fitness" studio. While the broader fitness industry is well-established, specific fitness concepts can be subject to trends and fads. A business model built around a particular style or brand of workout, such as "Throw Down®," may face challenges if consumer preferences shift over time. Your long-term success could be tied to the lasting appeal of this specific fitness niche, which is a risk you should consider.
Potential Mitigations
- Conduct independent market research with a business advisor to gauge the long-term demand for this specific type of dance fitness in your area.
- Question the franchisor about their strategy for innovation and evolving the workout concepts to stay relevant over the 10-year contract term.
- Your financial advisor can help assess the business's resilience to shifts in consumer fitness trends.
Inexperienced Management
Medium Risk
Explanation
The management team's experience, as detailed in Item 2, is primarily in operating their single fitness studio, not in managing a national franchise system. While they have industry experience, supporting a network of franchisees requires a different skill set involving training, supply chain management, and marketing at scale. This lack of direct franchising experience in leadership could impact the quality of support and guidance you receive, especially in the system's critical early years.
Potential Mitigations
- In your discussions with the franchisor, inquire about how they plan to compensate for their limited franchise management experience.
- A business advisor can help you assess whether the described support systems in Item 11 seem robust enough for a new franchisor.
- Speaking with the very first franchisees to open will provide insight into the actual quality of support being delivered.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package. The franchisor appears to be owned by its founding individuals, as described in Item 1 and Item 2. There is no disclosure of ownership by a private equity firm or similar investment group. Therefore, risks specifically associated with the priorities and typical operating models of such financial buyers are not present here.
Potential Mitigations
- It is good practice for your attorney to confirm the ownership structure of the franchisor during due diligence.
- Understanding the motivations of a franchisor's ownership is always wise, and a business advisor can help you ask the right questions.
- Always have your accountant review the franchisor's financials for signs of unusual debt structures or ownership complexities.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD Package. The franchisor properly discloses its affiliate, You So Fly, LLC, in Item 1. There is no indication of any other parent or controlling entity whose financial information or operational influence is being obscured. The ownership structure appears straightforward based on the document.
Potential Mitigations
- Your attorney can verify the corporate structure through public records to confirm the information disclosed in Item 1.
- It's always recommended to have an accountant review the relationship between a franchisor and its affiliates for any financial dependencies.
- Asking the franchisor direct questions about their corporate structure can be a useful part of due diligence.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 of the FDD states that Fly Dance Fitness has no predecessors. This means the company did not acquire its assets or system from a prior entity, and the history presented is its own from its formation. Therefore, there are no risks related to a hidden or problematic history from a predecessor company.
Potential Mitigations
- Your attorney can confirm the company's formation details to verify the lack of a predecessor entity.
- A business advisor can help you focus your due diligence on the franchisor's own limited history, since there is no predecessor to research.
- Independent internet searches for the company and its principals are still a prudent step in any due diligence process.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 3 discloses that neither the franchisor nor its management have been involved in any material litigation. The absence of lawsuits, particularly from franchisees alleging fraud or breach of contract, is a positive indicator for a new system, though it is expected given its very short operating history.
Potential Mitigations
- Your attorney should still consider conducting a public records search to confirm that no litigation has been omitted from Item 3.
- As you communicate with other franchisees, asking about any disputes they may have had, even if not formal lawsuits, is a good practice.
- A business advisor can help you evaluate other risk factors, as litigation history is not yet a relevant indicator for this new system.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
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Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.