Risk Score
Pending analysis
Investment Range
$425,250 - $704,800
Franchise Fee
$19,050
Min Cash Required
$25,000
Total US Locations
303
Business Summary
School of Rock businesses are performance-based music schools that offer a rock music program for both children and adults. These schools provide individual music lessons, group rehearsals, and opportunities for students to gain performance experience by playing in front of a live audience at real rock venues. School of Rock also utilizes proprietary technology to enhance its teaching methods and offers an optional "Little Wing" program for younger children. Additionally, the brand organizes elite student groups known as "The School of Rock AllStars" for advanced musicians.
Corporate History
School of Rock Franchising LLC was initially established as Paul Green School of Rock Music Franchising, LLC in Pennsylvania in August 2005, later changing its name to School of Rock in January 2010. Its direct parent, School of Rock, LLC (SOR Parent), started operating music schools in December 2004. In September 2023, School of Rock Franchising LLC became an indirect, wholly-owned subsidiary of Youth Enrichment Brands, LLC, which is ultimately owned by funds managed by Roark Capital Management, LLC.
Financial Overview
Investment Range
$425,250 - $704,800
Franchise Fee (Low)
$19,050
Franchise Fee (High)
$59,900
Minimum Cash Required
$25,000
Royalty %
8%
Marketing %
3%
Equipment Costs (Low)
$296,500
Equipment Costs (High)
$483,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
School of Rock Franchising LLC appears to be in a healthy financial position, reporting a net income of over $10.6 million in 2024 and significant positive working capital of more than $8.4 million. The company's financial statements received an unqualified opinion from its independent auditor, with no going concern issues noted. However, School of Rock Franchising LLC has guaranteed long-term debt of an upstream affiliate, YEB Intermediate Holdings, LLC, which amounts to approximately $273 million as of December 31, 2024, payable through October 2027. The company's assets and franchise license agreements are pledged as collateral for this debt, though School of Rock Franchising LLC states it is unaware of any circumstances that would require it to perform under this guarantee.
Financing Details
School of Rock Franchising LLC does not offer any direct or indirect financing options. Additionally, it does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
303
Franchised Units
254
Corporate Units
49
Avg Square Footage
2,850
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
School of Rock Franchising LLC itself has no litigation to report. However, its direct parent, School of Rock, LLC, was involved in a landlord/tenant dispute filed in 2020, which was settled in 2021 with a payment of $35,000. Additionally, several affiliated franchise programs under the same indirect parent (Roark Capital Management, LLC) have concluded litigation. Arby's Restaurant Group, Inc. and Dunkin' Brands, Inc. each settled multi-state lawsuits filed in 2019 regarding "no-poaching" clauses in their franchise agreements, agreeing to modify practices and not enforce such provisions. Dunkin' Brands also settled a 2019 New York lawsuit related to cyberattacks, paying $650,000 and agreeing to maintain an information security program until September 2026. None of the affiliate actions are alleged to involve unlawful conduct by School of Rock or its brand, and are described as having no impact on them.
Bankruptcy History
School of Rock Franchising LLC has no bankruptcy history to disclose in its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, School of Rock franchisees must provide timely notice, renovate their premises to meet current brand standards, and ensure they are not in default of any agreements with School of Rock or its affiliates. They must have satisfied all financial obligations, have the right to possess their operating location, and sign School of Rock's then-current franchise agreement (which may have different terms). Franchisees also need to sign a general legal release, comply with all training requirements, pay a renewal fee equal to one-third of the then-current initial franchise fee, and be current on all payments to their landlord, suppliers, and other business partners.
Training & Support Program
Franchisor Assistance
School of Rock Franchising LLC provides extensive support to its franchisees. Before opening, it offers site selection guidelines and consultations, conducts on-site evaluations for site approval (with franchisees covering expenses), and assists with lease negotiations. School of Rock also provides specifications for a prototypical school, initial training, and an equipment list, along with access to a confidential operating manual. For ongoing support, the franchisor makes advertising and promotional materials available (at franchisee expense), and offers advice and written materials on various operational aspects, teaching methods, and marketing techniques. This advice specifically relates to the unique traits of the System and does not include guidance on employee employment terms. The franchisor designates and approves suppliers for products and equipment, and manages the Brand Fund for system-wide advertising and brand promotion. Additionally, School of Rock organizes and promotes concerts for "The School of Rock AllStars" student groups, retaining all revenue from these activities.
Initial Training Hours
35
Training Location
Hybrid (virtual and in-person in Glen Ellyn, Illinois or another designated location)
Ongoing Support
After opening, School of Rock provides ongoing support by making advertising and promotional materials available (at the franchisee's expense). School of Rock also offers advice, assistance, and written materials on various aspects of operations, services, teaching methods, show selection, music development, business issues, class scheduling, sales, and marketing techniques, as determined in its discretion. This advice specifically relates to the unique traits of the System and does not include guidance on employee employment terms. The franchisor also designates and approves suppliers for products and equipment, and maintains and administers the Brand Fund for system-wide advertising and brand promotion.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
School of Rock territories are designated in the Franchise Agreement and offer limited protected rights. The specific size of each territory can vary based on the population density of the area around the school, ranging from a certain number of city blocks in an urban setting to an entire township in a suburban area. School of Rock does not guarantee a minimum size for the territory.
Staffing Notes
School of Rock franchisees are responsible for all staffing decisions, including hiring, firing, training, wages, and scheduling. However, the school must always be under the direct, on-premises supervision of an individual who has completed the Initial Training Program. Franchisees must also maintain a trained staff, including a Music Director who has completed the Initial Training Program. All employees must provide competent and courteous service, meet established attire standards, and undergo background checks prior to hiring and periodically thereafter. While School of Rock sets operational standards for customer relations and employee conduct, it does not dictate essential terms of employment such as wages, working conditions, hours, or staffing levels, as these decisions remain the sole authority of the franchisee.