School Of Rock Franchise Startup Cost, Profit & Opportunities
School of Rock was founded by Paul Green in 1998 and began franchising in 2005.
However, it was bought over by Sterling Partners and since then has grown into one of the top franchise opportunities as evidenced by its #219 ranking by Entrepreneur Magazine’s franchise 500.
The School of Rock provides teaching and instructional services in vocals, guitar, bass, drums, and keyboards. These lessons are structured into group band rehearsals and weekly private music lessons in addition to day camps.
School of Rock is seeking to open new franchise units across the world.
How Much Can A Franchisee Earn?
This is one of the most asked questions by prospective franchisees. While it’s an important question to ask, there’s no single answer to it. In other words, there are multiple factors influencing earnings. There are earning records from existing franchisees which gives you an idea of the earning potentials inherent.
So, how does one get access to these earning records? This is possible when you begin the application process. School of Rock issues you its Franchise Disclosure Document (FDD). This is only available for those the franchisor considers as being qualified.
The FDD contains detailed costs in addition to earnings reported by existing franchisees.
What more? During application, you get the opportunity of speaking directly with existing franchisees. This is an important part of the application process you should take advantage of.
Franchise Start-Up Costs
The average start-up costs for opening a School of Rock franchise ranges from $192,150 to $422,100. So, what does this estimated investment includes? Several! Because this is the total amount required to open the franchise, we’ll be providing a cost breakdown to help give you a better picture.
The initial franchise fee is included in the estimated initial investment. The franchise fee starts at $49,900 and is due at the signing of the franchise agreement. Other fees include initial rent outlays ranging from $8,000 to $14,600 (to be paid to the landlord), and site selection & leasehold improvement of $60,000 to $198,000. This is paid to contractors & suppliers.
Furnishings will cost an average of $10,000 to $24,000, equipment starts at $15,000 to $25,000 while security cameras costs $6,500 to $9,500. Signage fees range from $5,000 to $12,000, supplies costs about $400 to $800, pre-opening training will cost around $1,400 to $2,500 while advertising costs starts at $10,000.
There are additional costs such as opening inventory starting at $2,300 to $3,300, computer and software at $1,500 to $2,500, permits and licenses at $250 to $1,000 and architectural fees at $5,000 to $15,000. Prepaid insurance takes up about $500 to $3,000, utility costs & deposits start at $400 to $1,000.
What more? As its franchisee, you’ll be needing additional funds of $15,000 to $45,000 for three months.
This is necessary until the business stabilizes and becomes profitable. Royalties include the ongoing royalty fee and the ad royalty fee of 8 and 3% respectively.
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Other Costs
Franchisees are also required to have liquid assets of $100,000. This is in addition to a net worth of $300,000 which is for single candidates. The net-worth of a group of investors will translate to the sum of $300,000.
For instance, a group of investors consisting of 3 persons will require a net worth of $300,000+3 which equals $900,000.
Financing
A lot of prospective franchisees usually require some form of financing. School of Rock makes this easier through its relationship with financing sources. These offer financing that covers vital areas of operation such as equipment purchase and start-up costs. Others include the franchise fees, inventory, payroll and accounts receivable.
Honorably discharged veterans get to enjoy a 10% discount off of the franchise fee. This is the franchisor’s way of honoring them(vets) for their gallantry and sacrifice to the country.
Training
Training is essential to your successful take off as a School of Rock franchise. However, this follows immediately after signing the franchise contract. It involves onsite training which lasts for 5 hours. This is followed by another training held at the franchisor’s headquarters which lasts for 25 hours.
That is not all. Additional training is provided as needed in addition to refresher courses that seek to update franchisee skills.
Support
School of Rock considers support an essential part of its operations. The more support franchisees get, the better their performance and growth. This support is offered in two categories; marketing and ongoing support.
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Marketing Support
Marketing support includes several activities and privileges such as access to the franchisor’s cooperative advertising.
Others include the use of its ad templates, regional advertising, social media advertising, SEO website development, and email marketing.
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Ongoing Support
This type of support covers or includes grand opening ceremony, access to its purchasing cooperative, newsletter publications, meetings & conventions, a toll-free line, and online support.
Others are security & safety procedures, field operations, site selection, use of its proprietary software and access to its franchisee intranet platform.
Apply Or Request For Information
Having read this article, lots of questions might arise. For some other readers, the information here might be enough motivation for them to apply. Whatever the case is, School of Rock provides an online application form where you can fill and submit. This essentially kick-starts the process and leads to other actions.
If you prefer to call, you can reach the franchisor on (866) 293-5903. Filling and submitting the form also gives you access to download the School of Rock’s Executive Summary. This gives you a more detailed financial information.
The next step is the pre-qualification call. Here, the franchisor’s franchise development team reaches out and provides you with a quick overview of its franchising opportunities.
Financially qualified candidates get a scheduled call with the School of Rock’s Director of Franchise Development.
This leads to other steps like candidate interviews, FDD review, due diligence or program review, the opening act, final approval and starting your franchise.
During the application process, you get more detailed information on the whole process. However, the School of Rock reserves the sole right to alter any part of its franchise requirements. Under such circumstances, some little variations in the information provided here may result.
