History FADS

HISTORY OF FRED ASTAIRE FRANCHISE DANCE STUDIO

Fred Astaire Dance Studios started in 1947 when Mr. Charles Casanave, a then famous film producer, convinced Fred Astaire into the concept of having a dance studio on Park Avenue, New York City so that even long after Mr. Astaire's death, the name of Fred Astaire would remain in lights. Within the first year, there were requests for over 75 franchises. As a result, Mr. Casanave took Fred to lunch and negotiated a perpetual franchising agreement with him. In 1958, Charles Casanave, Sr. passed away and his two sons, Charles Casanave , Jr. and Chester Casanave, inherited their father's estate which included the Fred Astaire Dance Organization. At that time the Fred Astaire Dance Organization taught Ballet, Tap, and Jazz as it had originated, but also began to teach Ballroom and Social dancing, as well. Since Mr. Astaire was pursuing other interests, the brothers Casanave bought him out, totally, giving them perpetual rights to the Fred Astaire name and trademarks for dance instruction worldwide.

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The Casanaves offered area franchises to the most productive, largest grossing school in each sate. They became master franchisers of their state qualified to issue Fred Astaire Dance Studio sub-franchises. The royalty fee for these sublicensees went directly to the master franchiser for that state. Each master franchiser would then pay a very small fixed annual payment to the parent corporation ( Casanaves ). As the years progressed, many of the area master franchisers became very successful. It was not unusual for a master franchiser to have 20 to 30 schools under their jurisdiction.

This very successful structured relationship continued until 1990 when Commonwealth Venture Capital Group from New York City decided to address some of the blind pool funds of their investment corporation by purchasing the Fred Astaire Dance Organization. The business plan used by the venture capital group had been created by Vincent Bulger, now President of Fred Astaire Dance Studios International.

Commonwealth Venture Capital Partners, LTD installed Mr. Steve Diener, as President. Unfortunately, Mr. Diener, who had no working dance knowledge or previous dance business background, deviated from the then successful business plan.By the end of 1991, Mr. Bulger's first year of service as Vice President and International Dance Director of Fred Astaire Dance Studio's Inc., Mr. Bulger and Mr. Terry Zielinski, CFO, informed Mr. Diener that the direction he was pursuing would not be successful. In 1992, Mr. Bulger and Mr. Zielinski both feeling dissatisfied left the North American office. In 1993, Mr. Steven Diener was fired as President of the company.

Following the departure of Mr. Diener, the parent corporation sold the North American Division of the Fred Astaire Dance Organization. Their intent was to reduce their liabilities and debt service, accumulated during Mr. Diener's tenure of service. The parent corporation retained the International Division.

Vincent Bulger

In 1995, Mr. Vincent Bulger and a group of investors bought the international division of the Fred Astaire Dance Organization from Commonwealth Venture Capital Partners, Ltd., giving Fred Astaire Dance Studios International or FADI or short, perpetual rights to the Fred Astaire name and trademarks for dance instruction world wide with the exception of North America as noted above. Under Mr. Bulger's key leadership additional schools have been converted and numerous negotiations are currently present for increased expansion. FADI has developed key business plans for creation of international ballet, youth, tap, and performing arts which augment the growth of the company.

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