How to Finance a DivaDance Franchise: Studio or Partner Space
By Marc Cornella
A DivaDance franchise loan is usually a small one by franchise standards. DivaDance is an adult dance fitness concept that lets owners launch without a dedicated studio, renting time in partner space while membership grows, then move into a leased studio later. That flexibility changes what a lender is financing: less build-out and equipment, more launch marketing, instructor payroll and working capital.
US Professional Funding is not affiliated with, sponsored by or endorsed by DivaDance; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
DivaDance Franchise Loan at a Glance
- Initial franchise fee: $36,000, a one-time fee, according to the franchisor’s market pages.
- Total investment without a leased studio: $54,400 to $75,100.
- Total investment with a leased studio: $85,900 to $142,100.
- Royalty and fund contributions: not published on the franchisor’s website; see Item 6 of the current FDD.
- Net worth and liquidity requirements: not published; confirm during discovery.
- Experience: the franchisor says no dance, fitness or prior business background is required.
- System size: the company reports more than 45 locations across the U.S. and Mexico.
- SBA Franchise Directory: listed as DIVADANCE (code S5362), with a note requiring an affidavit that the business is open to both men and women.
What Is DivaDance?
DivaDance launched in 2015 and began franchising soon after. Founder and CEO Jami Stigliano built the brand to give adults a place for fun, non-competitive choreography classes, inspired by the dance routines of her childhood sleepovers. Austin, Texas, is home to its flagship studio and national headquarters.
The classes. DivaDance describes itself as a choreography-first dance fitness franchise built for adults of every level. Class formats include Adult Music Video Choreography, a high-cardio dance fitness class called NonStop and a therapy-inspired format called DanceRx. The emphasis is on pop-music choreography and community rather than recitals or competitions.
The revenue model. Studios run on recurring monthly memberships, supplemented by drop-in classes, private events such as bachelorette and birthday parties, team-building sessions, performance programs and branded merchandise.
The owner’s role. Instructors teach the classes; owners lead the business, handle local marketing and manage operations. Instructors are hired and certified through the franchisor’s instructor development program, so owners do not need to dance themselves.
Why lenders view it the way they do. Lenders like a low initial investment, recurring membership revenue and a model that can start without a long lease. They also know a lean launch leaves less hard collateral, and that results depend heavily on the owner’s local marketing and community building. A DivaDance franchise loan request that shows a clear membership plan and adequate reserves stands out.
DivaDance Franchise Costs
Initial franchise fee. The franchisor’s market pages list a one-time franchise fee of $36,000. Item 5 of the FDD confirms the amount and any discounts or multi-territory pricing.
Two ways to launch. DivaDance publishes two investment ranges:
- Without a leased studio: $54,400 to $75,100, for owners who start in partner studio space.
- With a leased studio: $85,900 to $142,100, for owners who open a dedicated location.
Some of the franchisor’s other materials describe higher totals for openings with significant build-out, so treat the Item 7 table in the current FDD as the controlling source for your budget.
Partner space versus a leased studio. In the partner model, owners rent class time in an existing studio, avoiding a long-term lease and most build-out. A leased studio adds deposits, leasehold improvements, dance flooring, mirrors, sound and lighting, and signage.
Opening costs and working capital. Grand opening and presale marketing, instructor training, software, insurance and additional funds to cover partner rent, payroll and fees until memberships cover expenses.
Typical Item 7 categories.
- Initial franchise fee
- Partner studio rent or lease deposits and pre-opening rent
- Leasehold improvements, dance flooring and mirrors (leased studio only)
- Sound system, lighting and studio technology
- Signage and branded materials
- Grand opening and launch marketing
- Training travel and instructor certification
- Insurance, licenses and deposits
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. DivaDance does not publish its royalty or marketing fund rate on its website. Item 6 of the FDD lists both, along with any minimum payments and technology fees.
Instructor payroll and studio rent. Instructor pay and partner studio rent, or lease payments once you have a dedicated location, are the main operating costs.
How lenders factor these costs in. Lenders subtract royalties, fund contributions, rent and payroll from projected membership revenue and test whether the business covers debt service. With a small loan, the lender’s biggest question is usually whether the owner has enough working capital to reach a stable member base.
Franchisor Requirements for New Owners
DivaDance does not publish minimum net worth or liquidity figures on its website. The franchisor says no dance or fitness background is required, and owner stories on its blog describe the role as hands-on, especially in the first year. The brand also describes owners who later grow into multiple units once a manager-led model is in place.
The approval process. DivaDance outlines a path of exploring the opportunity, reviewing the FDD, speaking with current owners and then training and launching. In some markets, an area representative supports prospective owners.
Ways to Own a DivaDance
A new territory in partner space. The lowest-cost entry. Lenders underwrite the borrower, the Item 7 budget and a membership plan. See our page on financing a fitness studio start-up.
A new territory with a leased studio. Higher cost and more collateral in the form of improvements and equipment. The lease becomes part of underwriting.
Moving from partner space into a studio. Many owners plan to grow into a dedicated space as revenue stabilizes. By then, the business has operating history that lenders can underwrite.
Buying an existing location. An existing DivaDance comes with members, instructors and revenue history. Franchisor approval is required. Our guide to buying a boutique fitness business explains what to review, and we also finance fitness business acquisitions.
Financing Options for a DivaDance Franchise
SBA 7(a) loans. DivaDance is on the SBA Franchise Directory, so an SBA 7(a) loan can fund the franchise fee, launch costs, any studio build-out and working capital, subject to the affidavit note below.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived equipment, so it rarely fits a DivaDance launch.
Conventional loans. A conventional business loan may work for borrowers with strong credit and collateral, especially for smaller amounts.
Equipment financing. When moving into a dedicated studio, sound systems, lighting, mirrors and dance flooring can be financed separately. Read about equipment financing for fitness businesses.
Working capital and lines of credit. A partner-space launch relies on marketing and instructor payroll before memberships mature. A working capital loan or line of credit can bridge that period. See our working capital for fitness businesses page.
Seller financing on resales. A seller may carry part of the price of an existing location. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and some loan programs limit its terms.
SBA Loans for DivaDance Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory before making SBA-guaranteed loans to its franchisees. The listing confirms the franchise documents were reviewed for eligibility; it does not approve any borrower.
DivaDance’s listing and note. DivaDance is listed under code S5362. The directory note says the lender must obtain an affidavit signed by the applicant that the business is open to both men and women, and document the file with evidence, such as appropriate restroom or locker facilities or membership demographics. In plain English, SBA programs cannot finance businesses that restrict access by gender, and a dance fitness brand with a strong following among women has to show that its doors are open to everyone. DivaDance states that its services are open to all members of the public regardless of gender. Expect your lender to ask for the signed affidavit and supporting evidence before closing.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change; a DivaDance launch typically needs a fraction of that.
Application tips. Bring the FDD, franchise agreement, any partner studio agreement or lease, personal financial statement, tax returns and monthly projections. Our SBA loan payment calculator can help with early planning; estimates are not an offer or approval.
How Lenders Evaluate a DivaDance Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and usually require a personal guarantee.
Net worth and liquidity. Even with a small loan, lenders want an equity injection and reserves after closing.
Management and marketing experience. Leadership, sales, events or community marketing experience helps, since owners drive enrollment rather than teach classes.
Business plan and projections. Model membership growth, drop-ins and private events, instructor scheduling and partner studio rent. Show when you expect to move into a dedicated studio, if at all.
The FDD and agreements. Lenders review the franchise term, renewal, transfer and Item 10 financing, plus the partner studio agreement or lease. Our article on reading an FDD for financing explains the key items.
Gender-access documentation. Because of the SBA directory note, lenders will want the affidavit and supporting evidence in the file.
Multi-Unit Growth and Development Agreements
DivaDance says some owners scale into multi-unit territories. Ask about development terms, schedules and fees. Lenders typically finance each new location once the first shows stable results. Our article on financing multiple fitness locations covers how growth is underwritten.
Real-World Scenarios
A marketing professional launches in partner space. A buyer with event marketing experience uses a small SBA 7(a) loan for the franchise fee, launch marketing and working capital, and rents class time in a partner studio.
An owner moves into a dedicated studio. After building a member base, an owner leases space and finances flooring, mirrors and sound equipment separately.
A buyer purchases an existing location. A buyer acquires a location with active members and instructors, using an SBA loan and a subordinate seller note.
Common Mistakes to Avoid
- Budgeting from a single web page instead of the FDD’s Item 7
- Forgetting the SBA affidavit and supporting documentation
- Underfunding launch marketing and instructor payroll
- Signing a studio lease before membership demand is proven
- Ignoring partner studio agreement terms that could end your access
For more, read common fitness center loan mistakes.
Next Steps to Finance Your DivaDance Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10 and 17 with a franchise attorney and accountant.
Step 2: Choose your launch model. Decide between partner space and a leased studio.
Step 3: Build projections. Model memberships, events, payroll and rent month by month.
Step 4: Prepare the SBA affidavit. Gather evidence that the business is open to both men and women.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and working capital options.
Step 6: Apply, close and launch. Coordinate lender and franchisor timelines, then start presale marketing.
DivaDance Franchise Loan FAQs
How much does a DivaDance franchise cost?
The franchisor lists $54,400 to $75,100 without a leased studio and $85,900 to $142,100 with one. Confirm the current figures in Item 7 of the FDD.
What is the DivaDance franchise fee?
The franchisor’s market pages list a one-time franchise fee of $36,000.
What royalty does DivaDance charge?
The royalty and any fund contributions are disclosed in Item 6 of the FDD.
Do I need a studio to start?
No. DivaDance says no dedicated brick-and-mortar space is required to start; owners can launch in partner studio space.
Can I get an SBA loan for a DivaDance franchise?
Yes, if you qualify. DivaDance is listed on the SBA Franchise Directory under code S5362, and your lender must obtain an affidavit that the business is open to both men and women.
Do I need dance experience?
No. The franchisor says no dance or fitness background is required. Instructors teach the classes.
Does DivaDance offer financing?
Review Item 10 of the FDD. Most owners arrange outside financing.
Can I own more than one location?
Yes. DivaDance says some owners scale into multi-unit territories.
How long is the franchise term?
The term and renewal rights are summarized in Item 17 of the FDD.
Can a first-time owner get a DivaDance franchise loan?
Yes. Lenders look for solid credit, an equity injection, reserves and a realistic marketing plan.
Final Thoughts
A DivaDance franchise loan is often modest, but it still needs careful planning: the right launch model, enough working capital to build memberships and the SBA affidavit in order. Owners who budget from the FDD and plan their growth into a dedicated studio give themselves the best chance of a smooth financing process.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center financing solutions.
