Little School of Music Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Little School of Music is a music education franchise offering lessons on piano, guitar, and other instruments for kids and adults. Franchisees run the studios, managing instructors, scheduling, and enrollment.
FranchiseVerdict summary · 2026
A Little School of Music franchise requires a total initial investment of $248K – $335K and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $734K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $248K – $335K
- 52nd pct Education
- Avg gross sales
- $734K
- Company-owned only1 outlet24th pct Education
- 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 $248K – $335K, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $734K/year (company-owned outlets only - not franchisee performance).
- RISKVerdict C (Average), verdict score 44/100 (higher is better).
- FLAGRevenue data based on only 1 outlet. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Once Upon A Tune, LLC
- CEO title
- President and CEO
- Mindy Cabral
- CEO experience
- 19 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 1320 Arrow Point Drive, Ste 501-90, Cedar Park, TX 78613
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $62K
- vs $0 prior year
Overview
About
- CEO
- Mindy Cabral
- Headquarters
- TX
- Founded
- 2023
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 56% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Feenot refundable | $499 | $499 | |
| Initial Feesnot refundable | $25K | $25K | |
| Travel and Living Expenses While Trainingnot refundable | $3K | $15K | |
| Rent / Real Estate Depositnot refundable | $0 | $9K | |
| Real Estate Site Selectionnot refundable | $0 | $1K | |
| Utility and Miscellaneous Security Depositsnot refundable | $0 | $1K | |
| Leasehold Improvementsnot refundable | $25K | $50K | |
| Furniture, Fixtures, and Equipmentnot refundable | $24K | $28K | |
| Opening Inventory and Equipmentnot refundable | $106K | $132K | |
| Office Suppliesnot refundable | $5K | $7K | |
| Grand Openingnot refundable | $20K | $20K | |
| Insurancenot refundable | $3K | $5K | |
| Signagenot refundable | $2K | $5K | |
| Licensing and Permitsnot refundable | $2K | $2K | |
| Technology Setup Feenot refundable | $8K | $9K | |
| Security Systemnot refundable | $8K | $10K | |
| Professional Legal / Financial Servicesnot refundable | $3K | $5K | |
| Additional Funds (Three Months)not refundable | $15K | $20K | |
| Franchise Add-On (Studio Plus Optional)not refundable | $8K | $8K | |
| Concert Grand Piano (Studio Plus Optional)not refundable | $45K | $85K | |
| Total initial investment | $433K | $599K |
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
- $248K – $335K
- Middle of category vs category
- Liquid capital req'd
- $15K – $20K
- Top 40% of category vs category
- Franchise fee
- N/A
- Top 40% of category vs category
- Royalty
- 8.0%
- tiered · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 11.0%
- 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 | $225 |
| Training fee | $25K |
| Transfer fee | $10K |
| Renewal fee | $4K |
| Inventory (initial) | $106K – $132K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 8% below the education norm.
Company-owned outlets only - not franchisee performance
Based on a single outlet - not a system average
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$88K
12.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Little School of Music unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
28%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Little School of Music units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$734K
on $3.7M purchase
Total debt
$2.9M
SBA $1.8M + senior + seller note
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: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
Based on a single outlet - not a system average
- Avg gross sales
- $734K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical and projection
- Sample size
- 1 outlet
- vs category median 17 · small
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2023
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $734K/year in gross sales. Revenue-to-investment ratio: 2.5x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 11.0% (near the Education average).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 1 outlet — treat as directional only.
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 Little School of Music Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- 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
- 5
- 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?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Single-unit franchise with unverified financials, no territory protection, and franchisor stability concerns presents substantial execution and scalability risk.
Litigation (Item 3)
Item 3 discloses no litigation. Item 4 discloses no bankruptcy.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 44 / 100 verdict
- 01MINOROnly 1 operating unit with unknown growth trajectory indicates unproven scalability and potential system collapse risk
- 02MINORUnprotected territory creates direct competition risk; franchisor can open competing units in your market
- 03HIGHGoing Concern = False suggests potential franchisor financial instability or operational uncertainty
- 04MINOR8% royalty on $537k revenue = $43k+ annual ongoing fees with only 1 unit for support infrastructure
- 05MINOR10-year term is unusually long for an unproven single-unit franchise system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 |
| Territory population | 1,500 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 0 |
View Item 3 litigation summary
Item 3 discloses no litigation. Item 4 discloses no bankruptcy.
Items 10, 11
Training & Operations
- Classroom training
- 110 hrs
- On-the-job training
- 36 hrs
- Training location
- Valencia, CA (Live Virtual or In-person); franchisor office/online and franchisee location
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Little School of Music franchise?
The total investment to open a Little School of Music franchise ranges from $248K – $335K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Little School of Music franchise owners earn?
According to Item 19 of the Little School of Music FDD, the average gross sales per unit is $734K. Important context: Company-owned outlets only - not franchisee performance; Based on a single outlet - not a system average. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Little School of Music 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 Little School of Music FDD and qualifies whose outlets they describe.
What is Little School of Music's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Little School of Music (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 Little School of Music franchise locations are there?
As of their most recent FDD filing, Little School of Music has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Little School of Music a good franchise to buy?
FranchiseVerdict rates Little School of Music as a C-grade franchise with a verdict score of 44 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
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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.