Children's Music AcademyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Children's Music Academy franchise requires a total initial investment of $39K – $130K, including a $32K franchise fee and an ongoing 8.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $39K – $130K
- 4th pct Education
- Avg gross sales
- N/A
- 47th pct Education
- Royalty
- 8.0%
- 31st pct Education
- Units
- 22
- 38th pct Education
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 5% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $39K – $130K including a $32K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- System contracting at -5.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Children's Music Academy Franchising, Inc.
- Incorporated in
- CO
- HQ
- 9846 S. Venneford Ranch Road, Highlands Ranch, Colorado 80126
Overview
About
Franchisees operate children's music instruction academies, typically offering group and private lessons in piano, voice, guitar, and other instruments for students aged 4-18. Day-to-day operations include scheduling lessons, managing instructors, handling student registration/billing, marketing to parents, and maintaining studio facilities.
- CEO
- Janet Cross
- Headquarters
- CO
- Founded
- 1983
- FDD year
- 2024
- States available
- 10
FDD Item 7 · 2024 filing · 30 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Standard Unit) | $32K | $32K | |
| Real Estate/Rent (Standard Unit)not refundable | $2K | $3K | |
| Utility Deposits (Standard Unit) | $100 | $500 | |
| Leasehold Improvements (Standard Unit) | $10K | $35K | |
| Initial Inventory (Standard Unit) | $4K | $5K | |
| Insurance (Standard Unit) | $3K | $7K | |
| Office Equipment and Supplies (Standard Unit) | $3K | $5K | |
| Training (Standard Unit) | $4K | $6K | |
| Signage (Standard Unit) | $500 | $5K | |
| Furniture, Fixtures & Equipment (Standard Unit) | $4K | $4K | |
| Grand Opening (Standard Unit) | $2K | $2K | |
| Computers & Software (Standard Unit) | $3K | $5K | |
| Licenses & Permits (Standard Unit) | $100 | $200 | |
| Legal & Accounting (Standard Unit) | $2K | $4K | |
| Additional Funds - 3 months (Standard Unit) | $10K | $20K | |
| Initial Franchise Fee (Small Market Unit) | $15K | $15K | |
| Real Estate/Rent (Small Market Unit)not refundable | $750 | $2K | |
| Utility Deposits (Small Market Unit) | $100 | $500 | |
| Leasehold Improvements (Small Market Unit) | $5K | $8K | |
| Initial Inventory (Small Market Unit) | $1K | $2K | |
| Total initial investment | $117K | $189K |
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
- $39K – $130K
- Better than avg vs category
- Liquid capital req'd
- $5K – $20K
- Better than avg vs category
- Franchise fee
- $15K – $32K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Education averages
How Children's Music Academy Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 1
- Last reporting year
- Closed
- 1
- Turnover rate
- 4.5%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (yr3)
- -5.3%
- Net unit change last year
- 3-yr CAGR
- -5.3%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 1
- Transfers (3yr)
- 1
- Transfer rate
- 4.3%
- Owners selling to other franchisees
- Continuity rate
- 90.0%
- Units that stayed open
- Ceased ops
- 4.3%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 30 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $80K
- Median loan
- $80K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This is a contracting micro-franchise with regulatory baggage, zero financial transparency, and structural weaknesses that make ROI validation impossible before investment.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $1,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 57 / 100 rating
- 01MINORDeclining unit count: -5.3% YoY with only 22 locations suggests system contraction and weak franchisee success/retention
- 02MINORNo financial disclosure: Franchisor withheld average revenue and net income data (Item 19), preventing ROI assessment on $38,670-$130,300 investment
- 03MINORRegulatory violation: 2013 Minnesota Consent Order for selling unregistered franchises indicates compliance issues and potential systemic problems
- 04MINORUnprotected territory: No territorial exclusivity creates direct competition between franchisees and limits revenue predictability
- 05MINORHigh royalty burden: 8% of gross sales (not net) is aggressive for a children's education business with typically thin margins
- 06MEDMicro-franchise system: 22 units is a very small franchise network with limited brand recognition, support infrastructure, and peer learning opportunities
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Area of Primary Responsibility |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Children's Music Academy · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Children's Music Academy franchise?
The total investment to open a Children's Music Academy franchise ranges from $39K – $130K, with an initial franchise fee of $32K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Children's Music Academy franchise owners earn?
Children's Music Academy 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 Children's Music Academy's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Children's Music Academy (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 Children's Music Academy franchise locations are there?
As of their most recent FDD filing, Children's Music Academy has 22 total units in the United States. 1 new units were opened in the latest reporting year.
Is Children's Music Academy a good franchise to buy?
FranchiseVerdict rates Children's Music Academy as a B-grade franchise with a risk score of 57 out of 100, 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
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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.