Risk Score
Pending analysis
Investment Range
$357,350 - $630,000
Franchise Fee
$33,750
Total US Locations
2
Business Summary
WePlay Music operates music schools that provide professionally taught musical instrument and voice lessons, classes, choir, and music theory to adults and children from pre-school through high school. The business also sells related products and offers professional certification programs under the WePlay Music brand.
Corporate History
WePlay Music Franchise, LLC was formed in California on July 27, 2022, and is the franchisor. However, the WePlay Music business concept itself began operations earlier; an affiliate, WePlay Music, LLC, was formed in January 2017 and has operated a music school in Irvine, California since then. Another affiliate, WePlay Music – Parkview LLC, was formed in June 2022 and opened a second corporate-owned location in August 2022. WePlay Music began offering franchises in 2023 and, as of the disclosure document date, had not yet sold any franchises.
Financial Overview
Investment Range
$357,350 - $630,000
Franchise Fee (Low)
$33,750
Franchise Fee (High)
$45,000
Royalty %
8%
Equipment Costs (Low)
$241,500
Equipment Costs (High)
$458,500
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
WePlay Music's financial condition, as noted in its FDD's Special Risks section, calls into question its financial ability to provide services and support to franchisees. As of December 31, 2023, WePlay Music Franchise, LLC reported no revenues, a net loss of $33,285, and negative equity of ($85,935). Despite these figures, the independent auditor issued an unqualified opinion on the financial statements and found no substantial doubt about WePlay Music Franchise, LLC's ability to continue as a going concern.
Financing Details
WePlay Music does not offer any direct or indirect financing options to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
1,900
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
WePlay Music has no litigation to report in its Franchise Disclosure Document.
Bankruptcy History
WePlay Music has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, WePlay Music franchisees must meet several conditions. They need to be in good standing, without any unremedied breaches, and must not have engaged in unethical or dishonest conduct. Franchisees must also provide 6 months' advance written notice of their intent to renew and pay a renewal fee equal to one-half of the then-current initial franchise fee. Additionally, franchisees will be required to sign a new franchise agreement, which may contain materially different terms, update or replace their equipment, retain their current location, and remodel or refurbish their WePlay Music location to meet current brand standards. Renewal is also contingent on WePlay Music still offering franchises.
Training & Support Program
Franchisor Assistance
Before opening, WePlay Music provides franchisees with a license to use its marks and system, designates a territory, and approves the business location. The franchisor offers leasehold improvement guidelines, supplies required musical instruments, accessories, music books, and branded items (which franchisees purchase from them), and lists the franchisee's location on its main website. Franchisees receive current curriculum materials and suggested pricing guidelines through the operations manual, which is loaned to them. WePlay Music also provides initial training for the franchisee and one additional person and advises and assists with pre-opening activities. After opening, WePlay Music protects and defends its marks and system, provides periodic updates to the operations manual, and shares ongoing lists of new curriculum, materials, suggested pricing, and approved vendors. The franchisor offers periodic training programs for managers and other employees (for a fee) and provides general consultation and advice. Franchisees can also request additional on-site training for a daily fee plus travel and lodging expenses. WePlay Music maintains its main website and manages the Brand Marketing Program.
Initial Training Hours
60
Training Location
Irvine, CA
Ongoing Support
After opening, WePlay Music provides ongoing support to its franchisees. This includes periodic updates to the Operations Manual and ongoing lists of new curriculum, materials, suggested pricing, and approved vendors. WePlay Music offers periodic training programs for franchisee managers and certain employees for a fee, along with periodic consultation and advice regarding business operations. Franchisees can also request additional on-site training for a daily fee plus the franchisor's travel and lodging expenses. WePlay Music maintains its main website and manages the Brand Marketing Program. Additionally, corporate personnel spend approximately 1 day per week during the first 4 weeks after opening at the franchisee's WePlay Music location to provide post-opening training.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
Limited
Territory Size Requirements
WePlay Music territories are determined by the franchisor once a location is secured. They are based on the population and/or number of households in the surrounding area, with a minimum population of 30,000.
Staffing Notes
WePlay Music franchisees are solely responsible for recruiting, hiring, and training all their employees. All Music Instructors must hold at least a Bachelor's Degree or higher in the instrument they teach. WePlay Music requires employees working with children to undergo criminal background checks through a designated or approved vendor. The franchisor provides training for up to two initial trainees as part of the initial fee, but additional employee training incurs a daily fee. WePlay Music franchisees are responsible for all compensation, benefits, and travel expenses for their trainees and employees. The franchisor does not have authority over the franchisee's employees or advise on hiring decisions.