Children's Music Academy
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.
- Rated MODERATE with a risk score of 64/100.
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Children's Music Academy unit return on the cash you put in?
Unlevered ROIC · per unit
101%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 64 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Children's Music Academy · FDD (2024) PDF