School of Rock

The School of Rock franchise fee was not captured in this FDD extraction — Items 5 and 6 were absent from the data preparation files. The only disclosed upfront fee in available data is a Development Agreement fee of $29,950 per school for those signing a multi-unit development agreement.

Known cost data points from the available Item 7 footnotes: - Computer system and required software: $4,000–$8,500 - Grand opening marketing: minimum $10,000 (required in the 90-day window spanning 60 days before to 30 days after opening) - Insurance: approximately 25% of annual premium paid upfront - Development fee: $29,950/school under Development Agreement

The Item 7 investment table itself was not captured — the full buildout cost, total investment range, and line-item breakdown are not available in this profile. For context, music education franchises of comparable scale typically require $150,000–$400,000 in total investment, covering leasehold improvements (practice rooms, soundproofing), instruments, equipment, signage, and working capital.

Known ongoing fees: - Brand Fund: 3% of gross sales per month (up to 15% of total Fund may cover administration) - Local marketing: 3% of gross sales annually - Method App fee: $6.21/month per curriculum-eligible student (paid to the School of Rock parent company, not a third party) - POS software: $150/month from designated vendor - Additional Owner training: $600/person; $400/General Manager; $300/Music Director

Total identified fee burden: approximately 6% of gross sales (brand fund + local marketing), plus per-student Method App fees. The royalty rate itself is not disclosed in available data — this is a critical gap. Request the full Item 6 fee schedule before proceeding with any evaluation.

School of Rock does not appear to make financial performance representations in this FDD filing. The Item 19 source file contained only the FDD boilerplate page, not actual financial data. It cannot be confirmed from this extraction whether the full FDD includes any revenue disclosures.

For context on the segment: the music education market is driven by student enrollment numbers and lesson-to-performance program pricing. School of Rock's model differentiates by teaching students to perform in bands, which drives higher retention and higher program pricing than traditional lesson-based music schools. Industry reports suggest mature School of Rock locations target 150–300 active students, with average revenue per student in the $3,000–$5,000 annual range, implying a revenue ceiling of $450K–$1.5M at scale.

System-wide 2024 revenue of approximately $26.1M (referenced in available data) across the system suggests average per-location revenue in the range of $200K–$500K depending on total unit count — which is also not captured in this extraction.

For a complete financial picture, request the following directly from School of Rock: 1. Full Item 19 financial performance data (if disclosed) 2. Complete Item 6 fee schedule including royalty rate 3. Full Item 7 investment table 4. Current unit count (Item 20)

Do not make an investment decision based on this profile alone.

Item 20 unit count data was not captured in this FDD extraction. System size, opening and closure rates, and year-over-year growth trajectory are not available in this profile.

School of Rock has been franchising for over two decades and has grown internationally, with locations in the U.S., Latin America, and other markets. The brand has strong cultural recognition, supported by the 2003 Jack Black film that popularized the concept and ongoing media presence. This is one of the more recognizable brands in music education franchising.

The music education market has structural tailwinds: parental investment in children's extracurricular activities has been resilient through economic cycles, and performance-based music education programs command premium pricing that differentiates from lower-cost alternatives.

Request current unit count data directly from School of Rock's franchise development team.

The most significant issue with this profile is data completeness. The franchise fee, full royalty rate, complete investment range, and financial performance representations are all unavailable from this FDD extraction. This is an unusual combination of missing data for a system of School of Rock's size and history. Before doing any financial modeling, obtain and review the full 2025 FDD directly.

The Method App fee ($6.21/student/month) is paid to the parent company — meaning as you grow enrollment, this per-student fee scales up proportionally. At 200 active students, this is approximately $1,242/month or $14,900/year, which is a meaningful operating cost separate from your royalty and brand fund obligations.

Music education businesses are operationally dependent on instructor quality and retention. Qualified music instructors who can teach across multiple instruments and lead band rehearsals are not easy to hire or retain. Instructor turnover directly impacts student retention, and student attrition is the primary revenue risk in any subscription-based education business.

The 3% annual local marketing requirement is in addition to the 3% brand fund — a combined 6% of gross sales in advertising obligations. Verify the exact royalty rate before calculating your total fee burden.

School of Rock locations require soundproofed practice rooms, which are expensive to build and can create landlord complications. Confirm your prospective space can accommodate the acoustic requirements before signing a lease.