School of Rock Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
School of Rock is a music-education franchise teaching guitar, bass, drums, keys, and vocals through a performance-based method. Franchisees run a music school managing instructors, enrollment, lessons, and student concerts.
FranchiseVerdict summary · 2026
A School of Rock franchise requires a total initial investment of $425K – $705K, including a $60K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $672K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 104 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $425K – $705K
- 61st pct Education
- Avg gross sales
- $672K
- 22nd pct Education
- Royalty
- 8.0%
- 37th pct Education
- Units
- 303
- 75th pct Education
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
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 $425K – $705K including a $60K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $672K/year (median $640K).
- RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 0.0% across 104 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 20.4% CAGR over 3 years with 303 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- School of Rock Franchising, LLC
- Parent company
- School of Rock, LLC (SOR Parent)
- Ultimate parent
- Youth Enrichment Brands, LLC (owned by funds managed by Roark Capital Management, LLC)
- Predecessor
- Paul Green School of Rock Music Franchising, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer of YEB
- Robert Price
- Incorporated in
- Pennsylvania (originally); currently a Delaware/Pennsylvania LLC per FDD text (organized in Pennsylv
- HQ
- 1 Wattles Street, Canton, MA 02021
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $22.8M
- vs $26.1M prior year
Overview
About
- CEO
- Robert Price
- Headquarters
- MA
- Founded
- 2005
- FDD year
- 2025
- States available
- 38
Can you afford it, and what does the money buy?
Entry cost runs 15% below the typical education franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $25K | $85K |
| Equipment, build-out, other | $340K | $560K |
| Total initial investment | $425K | $705K |
Source: School of Rock 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $425K – $705K
- Middle of category vs category
- Liquid capital req'd
- $25K – $85K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 8.0%
- Gross Sales · 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 | $260 |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 16% below the education norm.
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
$81K
12.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.7 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 School of Rock unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
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 School of Rock units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$672K
on $3.4M purchase
Total debt
$2.7M
SBA $1.7M + 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
- Avg gross sales
- $672K
- Per unit, per year
- Median gross sales
- $640K
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 (average, median, high, low Total Sales by segment); also enrollment and expense breakdown for Company-Owned schools
- Sample size
- 223 outlets
- vs category median 17 · large
- Range (low → high)
- $173K→$2.1M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 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 $672K/year in gross sales. Revenue-to-investment ratio: 1.2x.
Fee burden
Total ongoing fee load of 11.0% (near the Education average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 20.4% CAGR over 3 years across 303 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 School of Rock Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 303
- Opened
- 24
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.4%
- Company-owned
- 49
- Corporate units in the system
- % franchised
- 84%
- vs corporate-owned
- Net growth (3-yr)
- +20.4%
- Net unit change over 3 years
- 3-yr CAGR
- +20.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 24
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 3
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 104
- Loan volume
- $37.8M
- Median loan
- $349K
- 50th percentile
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 34
- Defaults
- 0
- Typical loan rate
- 7.8%
- avg rate to borrowers
- Franchised industry avg
- 8.5%
- brand beats franchise avg ↓
- Jobs supported
- 1,516
- 4.0 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 84% went to startups / new businesses, 16% to established operators
Franchise vs independent — in fine arts schools, franchised businesses charge off at 8.5% vs 14.1% for independents — franchising is associated with 40% lower SBA default risk in this category.
Vintage analysis
School of Rock charge-off rate by loan vintage
Top lenders financing School of Rock franchisees
Showing 3 of 34 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into School of Rock's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 13-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 104 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean established system: net worth $2.56M, net income $10.65M on $26.1M revenue, 303 units growing 20.4%, audited, Item 19 disclosed. One old landlord/tenant case against parent settled for $35,000 in 2021. No bankruptcy or going-concern.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 86 / 100 verdict
- 01MINORSingle old settled parent case ($35K, 2021)
- 02MINORStrong net income $10.65M, 303 units, 20.4% growth
- 03MEDAudited, Item 19 disclosed
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 | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | protected |
| Protected territory | Yes |
| 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 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Massachusetts |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- POS system
- Pike13
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Pike13
Item 20 · call current owners
Franchisee Contacts
98 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
School of Rock · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a School of Rock franchise?
The total investment to open a School of Rock franchise ranges from $425K – $705K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do School of Rock franchise owners earn?
According to Item 19 of the School of Rock FDD, the average gross sales per unit is $672K. The median is $640K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the School of Rock 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 School of Rock FDD and qualifies whose outlets they describe.
What is School of Rock's franchise failure rate?
Based on SBA 7(a) loan data, School of Rock has a charge-off rate of 0.0% across 104 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many School of Rock franchise locations are there?
As of their most recent FDD filing, School of Rock has 303 total units in the United States, including 254 franchised units and 49 company-owned units. 24 new units were opened in the latest reporting year.
Is School of Rock a good franchise to buy?
FranchiseVerdict rates School of Rock as a A-grade franchise with a verdict score of 86 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.