What should I check before buying a dance studio?
Before buying a dance studio, check which teachers and choreographers the students follow, how the competition teams are run, the condition of floors and mirrors, what has been promised for costumes and recitals, and whether the lease can pass to you on workable terms.
A dance studio is a community. Students and parents often feel loyal to a particular teacher, a team or a studio tradition. When you buy, you are asking that community to accept you. The checks here start with people, move to the physical space and end with the promises already made for the coming season.
Teachers, choreographers and the students who follow them
Ask who teaches which classes and how long each teacher has been there. Find out whether any key teacher or choreographer is staying, and on what terms. A teacher who leaves may take students along, so read any written agreements and ask your lawyer what they do and do not protect.
Competition teams
If the studio runs competition teams, ask how they are chosen, who coaches them and what families commit to for travel, entry and extra rehearsals. Teams often hold the most devoted families, and a change in coaching can unsettle them. Ask what has been promised for the season in progress.
Floors, mirrors and equipment
Walk every room. Look at the floors, especially whether they are suitable for the styles taught, and at the mirrors, barres and sound systems. Ask who owns each item and when repairs or replacements are due. A hurt dancer is a serious matter, so ask your insurance broker what coverage the studio carries.
Costumes, recitals and the lease
Ask what families have already paid for costumes and the year-end recital, and who is responsible for ordering and delivery. Money collected in advance is an obligation you may inherit. Read the lease and ask whether the landlord must consent to an assignment. Studios need specialised space, so losing the lease can end the business. For general checks, see what to check before buying any business.
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
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