Children's Music Academy Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Children's Music Academy is a children's education franchise offering music instruction classes for kids ages 3 to 12. Franchisees run local programs, managing instructors, scheduling, and enrollment.
FranchiseVerdict summary · 2026
A Children's Music Academy franchise requires a total initial investment of $72K – $138K, including a $32K franchise fee and an ongoing 8.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $72K – $138K
- 23rd pct Education
- Avg gross sales
- N/A
- Royalty
- 8.0%
- 37th pct Education
- Units
- 24
- 43rd 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 $72K – $138K including a $32K franchise fee, 8.0% ongoing royalty.
- RETURNSItem 19 contains no financial performance representation; franchisor does not make any representations about franchisee financial performance
- RISKVerdict A (Strongest tier), verdict score 63/100 (higher is better).
- GROWTHSystem growing at 15.8% CAGR over 3 years with 24 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Children's Music Academy Franchising, Inc.
- CEO title
- President/Chief Executive Officer
- Janet Cross
- Incorporated in
- Colorado
- HQ
- 9846 S. Venneford Ranch Rd, Highlands Ranch, Colorado 80126
Overview
About
- CEO
- Janet Cross
- Headquarters
- Colorado
- Founded
- 2012
- FDD year
- 2024
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 84% below the typical education franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown30 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
- $72K – $138K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $32K – $32K
- Top 40% of category vs category
- Royalty
- 8.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- 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 | 3.0% of gross sales |
| Technology fee | $50 |
| Training fee | $4K |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Inventory (initial) | $4K – $7K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Children's Music Academy 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 Children's Music Academy unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
75%
Above the 30–60% band. Verify revenue is per-unit average
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: 2024 FDD
Financial Performance
Item 19 contains no financial performance representation; franchisor does not make any representations about franchisee financial performance
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 10.0% (near the Education average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 15.8% CAGR over 3 years across 24 units — operators are staying and new ones are joining.
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 Children's Music Academy Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 2
- 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
- 2
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (3-yr)
- +15.8%
- Net unit change over 3 years
- 3-yr CAGR
- +15.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 7 states 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.
7
states with franchisees (per FDD Item 12)
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
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
No litigation disclosed in Item 3
Largest disclosed settlement: $1,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 01MINORDeclining unit count: -5.3% YoY with only 22 locations suggests system contraction and weak franchisee success/retention
- 02MINORRegulatory violation: 2013 Minnesota Consent Order for selling unregistered franchises indicates compliance issues and potential systemic problems
- 03MINORUnprotected territory: No territorial exclusivity creates direct competition between franchisees and limits revenue predictability
- 04MINORHigh royalty burden: 8% of gross sales (not net) is aggressive for a children's education business with typically thin margins
- 05MEDMicro-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
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 5 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 15 to 20 preschool and elementary schools within the territory |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 25 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Principal city closest to franchisor's principal place of business (currently Highlands Ranch, Colorado) |
| Jury trial waiver | No |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 30 hrs
- Training location
- Training Facility in Denver, Colorado & Virtual Classroom
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisor designates area; franchisee selects site subject to approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks, Adobe Acrobat and CRM
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks, Adobe Acrobat and CRM
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 $72K – $138K, 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 Item 19 in the Children's Music Academy 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 Children's Music Academy FDD and qualifies whose outlets they describe.
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 24 total units in the United States, including 22 franchised units and 2 company-owned units. 2 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 A-grade franchise with a verdict score of 63 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?
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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.