Jazzercise Franchise

Hi June,

I stumbled on your site while looking for self employment tax info and found the article pertaining to whether a person is an employee or self employed. I read that it is about the relationships.

Well, I am a franchisee without owner status. The students pay the owners and the owners pay me a set amount per class. The owners decide which times and days I can teach, I am given music and choreograph notes and DVD's from Jazzercise Inc. to follow with approved routines. I cannot make up my own. Corporate determines how long my class is, the structure of my class, and even how long I can stretch in between routines. I am monitored for compliance once a year by Corporate and failing would mean termination. They require that I have CPR certification and pay liability insurance or again termination would ensue. The owners pay the rent, decide the class fee, maintain the membership, and promotions and all advertising. I own my microphone, because I choose not to use theirs, they own the mixer, speakers, weights, and mats that both I and the students use. I do not have my own business cards and had to sign a no compete document so that I cannot teach another aerobic format anywhere else.

Should I be filing self-employment tax? My owners do not give me any tax forms to file, even when asked. I did get the grand total of earnings for the year in writing after much prodding, (the total being $5730) and they do not report income paid to me to the IRS. What do you think? I believe I have the option of getting paid a percentage of the center instead of a base rate. Would that make a difference? So again, employee or self employed?

Thank you in advance for all your help!

Carol from Oregon


Hello Carol,

Franchise laws have different elements than those for indies. There are many questions in your email and your situation is too specific for a general response.

Here's a site that might point you in the right direction. It is from Jazzercise explaining its two franchise types:
http://www.jazzercise.com/become_franchise.htm

I assume you would have entered into a franchise with the advice of an accountant or attorney. You should contact that pro and get your situation cleared up. And maybe there are some Jazzercise folks who will read this and pass on some info to you.

Best,
June