School of Rock Franchise Costs & Fees
Date of Incorporation: 1998
Franchising Since: 2005
Headquarters: El Segundo, California
Business Description: School of Rock businesses are performance-based music schools with a rock music program.
Franchise Offer: The franchisee will operate a School of Rock business, which will offer a rock music program that provides, among other things, individual music lessons, group rehearsals, performance experience, exclusive, limited access to the school and school equipment during business hours and branded merchandise.
Financial Assistance: School of Rock does not generally offer direct or indirect financing. However, in very limited circumstances (e.g. a sale to an employee), the franchisor’s affiliate, School of Rock, LLC, has negotiated financing arrangements with franchisees that are purchasing company-owned locations.
Training and Assistance: School of Rock offers an initial training program which consists of music direction training curriculum (“Music Direction Training Curriculum”), business operations training curriculum (“Business Operations Training Curriculum”), and Little Wing™ Program curriculum (“Little Wing™ Program Curriculum”), which take place at the times and places that the franchisor designates. Before the opening of the School, the franchisee or designated music director (“Music Director”) or senior faculty (“Senior Faculty”) must successfully complete the Music Direction Training Curriculum. The franchisee and designated operations manager must successfully complete the Business Operations Training Curriculum. The Business Operations Training Curriculum is provided at the franchisor’s onsite training facility in Chicago, IL. The Music Direction Training Curriculum and the Little Wing Program Curriculum are provided virtually. The total Training Curriculum consists of approximately 4 days of training and additional remote training. The franchisor must approve the selected Music Director or Senior Faculty and General Manager.
Territory: The franchisee will be granted an exclusive territory. The franchisor will not establish or operate, or license any other person to establish or operate, a School of Rock business under the System and the Proprietary Marks at any location within your Territory. The size of the franchisee’s territory may vary depending on the population density of the area surrounding the approved location.
Term of Agreement and Renewal: The length of the franchise term is 10 years. The franchisee can renew for additional five-year terms, if the requirements are met.
Obligations and Restrictions: The School must at all times be under the direct, on-premises supervision of an individual who has successfully completed the initial training program required under the Franchise Agreement or as otherwise specified by the franchisor in writing. The franchisee must maintain a competent, conscientious, trained staff, including a Music Director who has successfully completed the virtual initial training program and any additional training as specified by the franchisor in writing. The franchisee must sell or offer for sale only those products, merchandise, and services as the franchisor has expressly approved for sale in writing; sell or offer for sale all types of products, merchandise, and services specified by the franchisor; refrain from any deviation from the franchisor’s standards and specifications without prior written consent; and discontinue selling and offering for sale any products, merchandise, and services which the franchisor disapproves in writing at any time.
Estimated Number of Units: 181
|Name of Fee||Low||High|
|Initial Franchise Fee||$24,750||$49,500|
|Initial Rent Outlays||$5,000||$12,500|
|Site Selection and Leasehold Improvements||$20,000||$142,000|
|Furnishings and Finishings||$10,000||$20,000|
|Permits & Licenses||$250||$1,000|
|Prepaid Insurance Premiums||$500||$2,000|
|Utility Costs & Deposits||$400||$1,000|
|Miscellaneous Opening Expenses||$1,000||$5,000|
|Additional Funds for 3 Months||$15,000||$45,000|
|Type of Fee||Amount|
|Royalty||8% of Gross Sales.|
|Brand Fund||3% of Gross Sales.|
|Interest||As incurred on overdue payments.|
|Insurance||Cost of insurance and, if not obtained by franchisee, the franchisor’s procurement expense.|
|Inspection/Audit||Cost of audit.|
|Site Selection (including onsite evaluation)||Amount of expenses.|
|Transfer||One-third of the then current initial franchise fee.|
|Renewal||One-third of the then current initial franchise fee.|
|Indemnification||Cost of liability.|
|Collection Costs and Attorney’s Fees||Cost of collection and attorney’s fees.|
|Information Technology Fees||Variable.|
|Licensing Fees||$61 Currently.|
|Student Gig Bags||$25 each.|
The above information has been taken from the FDD of School of Rock. Year of FDD: 2016
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