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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

Investment Tables:
Initial Investment
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
Equipment $15,000 $22,000
Signage $3,000 $15,000
Supplies $400 $800
Pre-Opening Training $1,500 $5,000
Advertising $10,000 As Arranged
Opening Inventory $2,300 $3,300
Computer/Software $1,500 $2,500
Permits & Licenses $250 $1,000
Architectural Fees $2,500 $7,000
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
ESTIMATED TOTAL $113,100 $343,600
Other Fees
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.
Training Fee $1,000
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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