Abbey Road Institute Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Abbey Road Institute is a music education franchise operating audio engineering and music production schools. Franchisees run the schools, managing instructors, curriculum, studio facilities, and enrollment.
FranchiseVerdict summary · 2026
A Abbey Road Institute franchise requires a total initial investment of $517K – $2.5M, including a $250K – $1.0M franchise fee and an ongoing 8.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $517K – $2.5M
- 63rd pct Education
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 8.0%
- 37th pct Education
- Units
- 1
- 2nd pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $517K – $2.5M including a $250K franchise fee, 8.0% ongoing royalty.
- RETURNSFY2025 royalty revenue $21,700; FY2024 and FY2023 royalty revenue $0.
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Abbey Road Institute, LLC
- Parent company
- Abbey Road Training Limited
- Ultimate parent
- Abbey Road Training Limited (joint venture owned by Heritage Investments FZE and Virgin Records Limited; Virgin Records' ultimate parent is Universal Music Group N.V.)
- Predecessor
- None (no predecessors)
- Prior franchisor entity
- CEO title
- Company Director / Chief Executive Officer of Abbey Road Training Limited
- Luca Barassi
- CEO experience
- 2018 yrs
- Years in role or industry
- Incorporated in
- Delaware
- HQ
- 4 Pancras Square, London N1C 4AG, United Kingdom
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $22K
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
- CEO
- Luca Barassi
- Headquarters
- United Kingdom (London)
- Founded
- 2021
- FDD year
- 2026
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 125% above the typical education franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Fee | $250K | $1.0M | |
| Pre-Opening Training Expensesnot refundable | $7K | $10K | |
| Real Property | — | — | |
| Construction and Leasehold Improvementsnot refundable | $60K | $600K | |
| Equipmentnot refundable | $100K | $650K | |
| Inventory to Begin Operatingnot refundable | $2K | $5K | |
| Permits and Licensesnot refundable | $15K | $30K | |
| Insurancenot refundable | $8K | $13K | |
| Professional Feesnot refundable | $14K | $20K | |
| Signsnot refundable | $1K | $2K | |
| Pre-Launch Marketing and Recruitment Campaignnot refundable | — | — | |
| Additional Funds (initial period - 3 months)not refundable | $60K | $130K | |
| Total initial investment | $517K | $2.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $517K – $2.5M
- Middle of category vs category
- Liquid capital req'd
- $60K – $130K
- Middle of category vs category
- Franchise fee
- $250K – $1.0M
- Bottom third — review vs category
- Royalty
- 8.0%
- tiered · typical 6–8%
- Ad fund
- No franchisor-administered advertising fund. Required Min…
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Transfer fee | $500K |
| Renewal fee | $50K |
| Inventory (initial) | $2K – $5K |
| Total fee load | 12.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Abbey Road Institute did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Abbey Road Institute unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
FY2025 royalty revenue $21,700; FY2024 and FY2023 royalty revenue $0.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 12.0% (near the Education average).
Disclosure
Item 19 reports student population and tuition metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth roughly flat at 0.0%.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How Abbey Road Institute Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Abbey Road Institute presents meaningful financial opacity and growth constraints; the lack of disclosed revenue data, unprotected territory, and modest unit expansion create elevated risk for a $500K+ investment with no validated ROI benchmarks.
Litigation (Item 3)
Item 3: "No litigation is required to be disclosed in this Item."
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 30 / 100 verdict
- 01MINORNo Item 19 financial performance disclosure — cannot validate revenue/profitability claims despite $517K-$2.46M investment requirement
- 02MINORUnprotected territory creates direct competition risk; franchisees can cannibalize each other's markets
- 03MINORHigh franchise fee ($250K) relative to unit count indicates dependency on new franchisee recruitment rather than system profitability
- 04MED8-12% royalty rate on undisclosed revenues creates unpredictable cash flow burden for franchisees
- 05MINORNo 'Going Concern' status may indicate recent financial instability or restructuring at corporate level
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 12.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | London, England (London Court of International Arbitration Rules) |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
Item 3: "No litigation is required to be disclosed in this Item."
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 14 hrs
- Training location
- London, United Kingdom (headquarters and an Abbey Road Institute in London)
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Computer and Point of Sale System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Computer and Point of Sale System
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Abbey Road Institute · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Abbey Road Institute franchise?
The total investment to open a Abbey Road Institute franchise ranges from $517K – $2.5M, with an initial franchise fee of $250K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Abbey Road Institute franchise owners earn?
Abbey Road Institute does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Abbey Road Institute FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Abbey Road Institute FDD and qualifies whose outlets they describe.
What is Abbey Road Institute's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Abbey Road Institute (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Abbey Road Institute franchise locations are there?
As of their most recent FDD filing, Abbey Road Institute has 1 total units in the United States, including 1 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Abbey Road Institute a good franchise to buy?
FranchiseVerdict rates Abbey Road Institute as a D-grade franchise with a verdict score of 30 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Abbey Road Institute, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.