School of RockFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $425K – $705K
- 53rd pct Education
- Avg gross sales
- $672K
- 28th pct Education
- Royalty
- 8.0%
- 31st pct Education
- Units
- 303
- 67th 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
Only 0.0% of 104 SBA loans charged off, well below the 16% franchise average.
32% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $425K – $705K including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $672K/year (median $640K), with an estimated 32% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 27/100. SBA loan charge-off rate of 0.0% across 104 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 20.4% CAGR over 3 years with 303 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SCHOOL OF ROCK FRANCHISING LLC
- Parent company
- School of Rock, LLC
- Incorporated in
- PA
- HQ
- 1 Wattles Street, Canton, MA 02021
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $22.8M
- vs $26.1M prior year
Overview
About
School of Rock franchisees operate music education centers offering group and private instruction in guitar, bass, drums, keyboard, and vocals, with a performance-based learning model culminating in student performances. Day-to-day operations include scheduling lessons, managing student enrollment, hiring and training instructors, marketing locally, managing facility logistics, and coordinating student performances and events.
- CEO
- Stacey Ryan
- Headquarters
- MA
- Founded
- 2005
- FDD year
- 2025
- States available
- 38
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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $425K – $705K
- Near category avg vs category
- Liquid capital req'd
- $25K – $85K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg 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
- Payback period
- 3.1 yrs
- From FDD / Item 19
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 |
Financial Performance
- Avg gross sales
- $672K
- Per unit, per year
- Median gross sales
- $640K
- Avg net income
- $180K
- Cash-on-cash
- 31.9%
- Based on Net Income / investment midpoint
- Item 19 type
- Average Total Sales and Net Operating Income
- Sample size
- 269 units
- vs category median 14 · large
- Range (low → high)
- $173K→$2.1M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How School of Rock Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 303
- Opened
- 24
- Last reporting year
- Closed
- 1
- Turnover rate
- 0.3%
- Company-owned
- 49
- Corporate units in the system
- % franchised
- 84%
- vs corporate-owned
- Net growth (yr3)
- +8.5%
- Net unit change last year
- 3-yr CAGR
- +20.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 10
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
Vintage analysis
School of Rock charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
School of Rock presents moderate-to-cautious risk due to missing financial performance data, slower unit growth, parent company litigation, and high capital requirement relative to unvalidated revenue claims.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 27 / 100 rating
- 01MINORAbsence of Item 19 (Financial Performance Representations) limits ability to validate claimed average revenue of $672,488 and net income of $207,093
- 02MINORModerate unit growth of 8.5% YoY is slower than healthy franchise systems; questions sustainability of expansion claims
- 03HIGHParent company litigation (landlord/tenant dispute) and affiliate settlements involving 'no-poaching' and cybersecurity suggest corporate governance and operational security weaknesses
- 04MEDHigh initial investment ($425k-$705k) paired with 8% royalty creates significant breakeven threshold; limited margin for underperformance
- 05MINORProtected territory is positive, but combined with lack of financial disclosure, territory boundaries and enforcement mechanisms are unverified
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 | 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 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 211 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 risk score of 27 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.
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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.