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Report Generated: April 01, 2026 Data Source: Official FDD Filing (2025)
See full cost breakdown →

School of Rock Franchise: Cost, Earnings & Real FDD Data

Education & Tutoring

School of Rock is a music education franchise offering performance-based guitar, bass, keyboard, and drum lessons for students of various ages and skill levels. The company combines private instruction with ensemble performance opportunities to develop musical proficiency and confidence.

Canton, MA · Founded 2004 · Franchising since 2005 · schoolofrock.com →

82.0
Good
N/A
Total Units
$859K
Median Revenue
$30K – $30K
Total Investment
8.0%
Royalty Rate
$308K
Est. Profit
0.4%
Closure Rate

The School of Rock franchise requires a total investment of $30K – $30K with a 8.0% royalty fee in the Education & Tutoring category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in School of Rock.

Key Takeaways

Investment Payback
At median revenue of $859K, payback on $30K–$30K investment in ~0.0 years
Growth Signal
Net -199 units over 4 years (declining)
Fee Burden
Royalty + ad fund = 11.0% of gross sales, vs 10.0% category average
Financial Disclosure
This brand discloses financial performance data (Item 19)

Deal Breakers 1 flag detected

Critical issues identified from FDD analysis that warrant serious consideration before investing.

System Shrinking by 100%
The franchise went from 199 to 0 units — a net loss of 199 locations. A shrinking system may indicate franchisee dissatisfaction, poor unit economics, or brand decline.
Question to ask the franchisor:
What is driving the unit losses? Are closures voluntary or forced? What is the company doing to reverse the trend?

Franchise Breakdown Score 82.0/100 · Good

Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.

Unit Growth
3/20
Stability
20/20
Investment Efficiency
20/20
Fee Reasonableness
8/15
Transparency
10/10
System Size
4/15

1 How Much Does a School of Rock Franchise Cost? FDD Item 7

Estimated initial investment range as disclosed in the most recent FDD.

Total Estimated Investment
$30K -- $30K
Midpoint
$30K
View detailed breakdown table
Line Item Low Estimate High Estimate
Franchise Fee $29,950 $29,950
Total $29,950 $29,950

3 School of Rock Franchise Revenue & Earnings (Item 19) Item 19 Available FDD Item 19

Financial performance data as disclosed in FDD Item 19.

$672K
Mean Revenue
$640K
Median Revenue

P&L Breakdown by Revenue Cohort

View all disclosed financial metrics (68 rows)
Annual Total Sales in 2024 - All Designated Schools (10 rows)
Metric Value Unit Cohort Period
Average Annual Total Sales $925,351 USD Company-Owned 2024
# and % of Schools At or Above Average Total Sales 0.0 COUNT Company-Owned 2024
Median Annual Total Sales $824,785 USD Company-Owned 2024
Highest Annual Total Sales $1,894,803 USD Company-Owned 2024
Lowest Annual Total Sales $268,332 USD Company-Owned 2024
Average Annual Total Sales $672,488 USD Franchised 2024
# and % of Schools At or Above Average Total Sales 0.0 COUNT Franchised 2024
Median Annual Total Sales $640,486 USD Franchised 2024
Highest Annual Total Sales $2,091,171 USD Franchised 2024
Lowest Annual Total Sales $173,015 USD Franchised 2024
Average Total Sales and Net Operating Income as a Percentage of Average Total Sales of Company Designated Schools in 2024 (48 rows)
Metric Value Unit Cohort Period
Total Sales (1) $925,351 USD -- 2024
% of Total Sales 100.0% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $824,785 USD -- 2024
Cost of Sales (2) $327,300 USD -- 2024
% of Total Sales 35.4% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $309,140 USD -- 2024
Gross Profit (3) $598,051 USD -- 2024
% of Total Sales 64.6% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $508,704 USD -- 2024
Management Labor (5) $105,662 USD -- 2024
% of Total Sales 11.4% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $99,569 USD -- 2024
Admin Labor (6) $40,524 USD -- 2024
% of Total Sales 4.4% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $37,745 USD -- 2024
Rent (7) $93,259 USD -- 2024
% of Total Sales 10.1% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $91,349 USD -- 2024
Marketing Expenses (8) $33,969 USD -- 2024
% of Total Sales 3.7% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $31,292 USD -- 2024
IT Fees (9) $4,141 USD -- 2024
% of Total Sales 0.4% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $4,141 USD -- 2024
Imputed Royalties (10) $74,028 USD -- 2024
% of Total Sales 8.0% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $65,983 USD -- 2024
Other Expenses (11) $39,375 USD -- 2024
% of Total Sales 4.3% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $40,259 USD -- 2024
Total Expenses (12) $390,958 USD -- 2024
% of Total Sales 42.2% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $366,856 USD -- 2024
Net Operating Income (13) $207,093 USD -- 2024
% of Total Sales 22.4% PCT -- 2024
Number and Percentage of Schools At or Above Average 0.0 COUNT -- 2024
Median (Annual) $147,522 USD -- 2024
Student Enrollment for All Designated Schools as of December 31, 2024 (10 rows)
Metric Value Unit Cohort Period
Average Enrollment 215.0 COUNT Company-Owned December 31, 2024
Number and Percentage of Schools At or Above Average Enrollment 0.0 COUNT Company-Owned December 31, 2024
Median Enrollment 197.0 COUNT Company-Owned December 31, 2024
Highest Enrollment 402.0 COUNT Company-Owned December 31, 2024
Lowest Enrollment 91.0 COUNT Company-Owned December 31, 2024
Average Enrollment 180.0 COUNT Franchised December 31, 2024
Number and Percentage of Schools At or Above Average Enrollment 0.0 COUNT Franchised December 31, 2024
Median Enrollment 173.0 COUNT Franchised December 31, 2024
Highest Enrollment 448.0 COUNT Franchised December 31, 2024
Lowest Enrollment 69.0 COUNT Franchised December 31, 2024

$ Estimated Unit Profitability Based on Item 19 Data

Based on financial performance data disclosed in Item 19 of the FDD.

$859K
Gross Revenue
$666K
Total Costs
$308K
Owner's Profit (35.9%)
642.2%
Annual ROI on Investment
View detailed P&L breakdown
Line Item Amount % of Revenue
Gross Revenue $858,602 100%
COGS $-0 0%
Labor $-135,659 15.8%
Occupancy $-86,719 10.1%
Marketing $-31,768 3.7%
Other Costs $-412,129 48.0%
Owner's Profit $192,327 22.4%

Investment Calculator Interactive

Model your personal financial scenario by adjusting the assumptions below.

Annual Revenue
Operating Margin
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Loan Percentage
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Royalty + Ad Fund (in margin)
Operating Profit
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Net Annual Cash Flow
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5-Year Total Return
Break-Even Monthly Rev
This calculator is for illustrative purposes only. Actual results will vary based on location, management, market conditions, and other factors. Always consult with a financial advisor and franchise attorney before making investment decisions.

4 Risk Assessment

Automated risk indicators based on FDD data analysis.

Low Closure Rate
Average closure rate of 0.4% is below 2%, indicating strong unit retention.
Declining Unit Count
Net -199 units over 4 years (-100.0%). The franchise system is contracting.
$
Quick Payback
Estimated ~0.0 year payback on investment at median revenue.
%
Reasonable Fee Burden
Combined royalty + ad fund of 11.0% is within normal range.
Financial Data Disclosed
This franchisor provides Item 19 financial performance representations, enabling better due diligence.

5 School of Rock Failure Rate & Unit Growth (Item 20) FDD Item 20

Franchise unit trajectory based on FDD Item 20 data.

Year Start Opened Closed Transferred End Closure Rate Net Growth
2022 199 +17 -- 4 211 -- --
2023 211 +25 -- 1 234 -- --
2024 234 +24 -1 3 254 0.4% --
2025 -- +32 -- -- -- -- --
0.4%
Avg Closure Rate
4
Years of Data

6 Category Comparison Education & Tutoring Brands

How School of Rock compares to peer brands in the Education & Tutoring category.

Investment Midpoint

Median Revenue (Item 19)

Investment-to-Revenue Ratio

Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.

Brand Total Units Investment Range Median Revenue Royalty Inv/Rev Ratio
Kumon 1671 $73K – $165K No Item 19 30.0% --
Sylvan Learning 478 $98K – $200K $842K 11.0% 0.2x
Huntington Learning Center 259 $159K – $298K $590K 9.5% 0.4x
Goldfish Swim School 177 $1.66M – $3.75M $2.15M 6.0% 1.3x
Code Ninjas -- $150K – $378K $695K 8.0% 0.4x
Snapology -- $95K – $138K $212K 7.0% 0.6x
School of Rock -- $30K – $30K $925K 8.0% 0.0x
Bach to Rock -- $254K – $544K $583K 7.0% 0.7x
JEI Learning Centers -- $65K – $115K No Item 19 -- --
ABRAKADOODLE -- $39K – $65K $739K 8.0% 0.1x

7 Franchisor Overview FDD Item 1

Performance-based music schools with a rock music program. The schools offer individual music lessons, group rehearsals, and performance experience where students play in ensembles and perform in front of live audiences at real rock venues.

Parent Company
School of Rock, LLC
Incorporated
Pennsylvania, August 19, 2005
Company Started
2005
First Franchised
2005
Franchise Term
10 years
Renewal Terms
Three successor terms of 5 years each, subject to meeting renewal requirements and paying a renewal fee.
Principal Address
1 Wattles Street, Canton, MA 02021

Key Executives

S
Stacey Ryan
President
6 years
A
Anthony Padulo
Chief Development Officer
8 years
S
Sam Dresser
Chief Innovation Officer
8 years
E
Eric Schmidt
Vice President of Information Technology
5 years
J
James Love
Vice President of Domestic Franchise Operations
6 years
C
Cia Tucci
Vice President of Company School Operations
1 years
R
Robert Price
Chief Executive Officer of YEB
8 years

Territory

Non-Exclusive Territory

Franchisees receive a limited protected territory. The franchisor will not establish or operate, nor license any other person to establish or operate, a School under the System and Proprietary Marks at any location within the Territory. The size varies based on population density.

Litigation

None disclosed for the franchisor. One concluded landlord/tenant dispute involving the parent company (SOR Parent) was settled in 2021 for $35,000. Several affiliates (Arby's and Dunkin') settled 'no-poaching' and data privacy actions with various state attorneys general.

8 Franchisor Financial Health 91/100 · Strong FDD Item 21

Audited financial statements from the franchisor's FDD (Item 21). These show the financial health of the franchisor entity, not individual franchise units.

Auditor
RSM US LLP
Opinion
Unqualified

Revenue Trend

Income Statement

2021 2022 2023 2024
Total Revenue $14,640,520$19,356,278$22,832,323$26,136,563
Royalty Revenue $10,366,008$14,230,498$12,370,536$13,788,868
Franchise Fee Revenue $1,275,246$1,546,324$1,719,374$1,640,073
Total Expenses $13,879,790$18,274,674$17,387,937$15,482,936
Operating Income $760,730 $1,081,604 $5,444,386 $10,653,627
Net Income $760,730 $1,084,154 $5,444,386 $10,653,627

Balance Sheet

2021 2022 2023 2024
Total Assets $7,215,595$8,586,849$9,067,259$10,748,479
Total Liabilities $6,835,445$7,122,545$7,158,569$8,186,162
Total Equity $380,150$1,464,304$1,908,690$2,562,317
Cash & Equivalents $2,362,775$224,630$443,518$743,592
Current Ratio 3.42x 3.73x 5.02x 6.92x
Debt-to-Equity 17.98x 4.86x 3.75x 3.19x

Cash Flow

2021 2022 2023 2024
Operating $570,355 ($2,138,145) $5,218,888 $10,300,074
Investing $0 $0 $0 $0
Financing $0 $0 ($5,000,000) ($10,000,000)
Net Change $570,355 ($2,138,145) $218,888 $300,074
  • The Company is a single member LLC owned by School of Rock, LLC.
  • In August 2023, the parent became a wholly owned subsidiary of Youth Enrichment Brands, LLC (YEB).
  • The Company has guaranteed long-term debt of YEB Intermediate Holdings, LLC, totaling approximately $273,000,000 as of December 31, 2024.
  • Significant related-party transactions include administrative fees charged by the member ($5,206,613 in 2024) and net advances to affiliates ($10,165,000 in 2024).
  • Revenue recognition follows ASC Topic 606, with franchise fees recognized over the term of the agreement.

9 Franchise Agreement Terms FDD Items 8-18

Key terms extracted from FDD Items 8-18. Click each section to expand.

Financing

Franchisor Financing Available: False

Details: The franchisor does not offer direct or indirect financing and does not guarantee any franchisee notes, leases, or obligations.

Franchisor Assistance

Pre Opening Assistance:

  • Site selection guidelines and consultation
  • On-site evaluations
  • Lease negotiation assistance
  • Prototypical School specifications
  • Initial training program
  • Advertising and promotional materials
  • Operating Manuals
  • Equipment list and supplier discount information

Ongoing Assistance:

  • Advertising and promotional materials
  • Operational advice and written materials
  • Supplier designation/approval
  • Administration of the Brand Fund
  • Organization of School of Rock AllStars concerts

Training Program:

Initial Training Hours: Approximately 24.25 classroom hours for Management and 10.67 classroom hours for Music Directors

Location: Glen Ellyn, Illinois (Week 5 of Management) and Remote Delivery (Weeks 1-4 and Music Director curriculum)

Description: Blended learning approach including instructor-led training, self-paced homework, and asynchronous online group learning. Management training lasts 5 weeks; Music Director training lasts 4 weeks.

Territory

Exclusive Territory: False

Territory Description: A designated 'Territory' with limited protected rights based on population density, ranging from city blocks in urban areas to townships in suburban areas.

Can Franchisor Compete: True

Online Sales Rights: Franchisees are prohibited from offering, selling, or advertising products/services on the Internet without prior approval. Franchisor retains all rights to use the marks for online sales and distribution.

Trademarks

Key marks include 'SCHOOL OF ROCK', 'SCHOOL OF ROCK ROOKIES', 'SONGFIRST', 'SCHOOL OF ROCK ONLINE', and 'SCHOOL OF ROCK METHOD'. Marks are owned by SOR Parent and licensed to the franchisor.

Patents Copyrights

SOR Parent owns utility patents for the 'Method Engine' (U.S. Patent Nos. 10,891,872; 12,165,534; and 12,165,535). Copyrights are asserted over method books and musical curricula. Licensing agreements exist with ASCAP, SESAC, BMI, and GMR.

Obligation To Participate

The franchisee (or at least one owner) or a designated General Manager must devote full-time and best efforts to the management and operation of the School and be on-premises during peak hours.

Restrictions On What Franchisee May Sell

Franchisees must sell only approved products, merchandise, and services at retail. Wholesale or resale is prohibited. Franchisor may establish minimum and maximum prices.

Renewal Termination Transfer

Term Length Years: 10 years

Renewal Conditions: Three successor terms of 5 years each. Conditions include timely notice, renovation of premises, no defaults, signing the then-current agreement, and paying a renewal fee (1/3 of then-current initial fee).

Termination For Cause Conditions:

  • Non-compliance with standards
  • Non-payment of fees
  • Insolvency or bankruptcy
  • Conviction of a felony or crime involving moral turpitude
  • Unapproved transfer
  • Underreporting Gross Sales by 3% or more in three reports

Transfer Conditions: Prior written consent required. Conditions include payment of a transfer fee (1/3 of then-current initial fee for 50%+ interest), general release, and transferee meeting qualifications.

Non Compete Post Termination:

Duration: 2 years

Radius: The Territory, 10 miles from the Approved Location, or 10 miles from any School of Rock Business

Scope: Prohibited from owning, operating, or assisting any business substantially similar to a School of Rock or offering similar music instruction/performance services.

Public Figures

None

Restrictions On Sources

Required Suppliers:

  • Suppliers designated or approved by franchisor
  • Franchisor or affiliates are approved suppliers for Little Wing materials and branded merchandise
  • Franchisor may designate a sole supplier for certain products, services, or equipment

Purchasing Cooperatives: None

Notes: Franchisees must purchase all products and services for which standards are established solely from approved suppliers. Franchisor receives commissions on GearSelect merchandise sales.

Franchisee Obligations

Franchisees are obligated to handle site selection, development, training, fee payments, compliance with operating manuals, trademark usage, insurance, advertising, and personal participation in operations. Detailed references are provided for both Franchise and Development Agreements.

SBA Loan Data 2014–2026

SBA 7(a) loan approvals for School of Rock franchisees from the SBA FOIA public dataset. Lenders report franchise codes at origination — this is real lending activity, not estimates.

$39M
Total SBA Approved
110
SBA Loans
$352K
Avg Loan Size
0.0%
Default Rate
Active Lending States 25
Distinct Lenders 34
Jobs Supported 1,647
Top Lending States
TX 10 CA 10 WA 8 OH 8 NJ 7
Annual SBA Loan Volume

Source: SBA FOIA 7(a) public data. Franchise codes matched by brand name. Not all SBA loans are captured; some franchisees finance without SBA programs.

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