Children’s Music Academy franchise unit economics
Children’s Music Academy franchisees run music academies that teach group classes to young children and their parents, paid as semester tuition.
Children’s Music Academy franchise at a glance
Children’s Music Academy’s 2026 FDD, issued 15 April 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A Children’s Music Academy franchise costs $72,200 to $138,200 to open, and $33,750 to $34,250 of that is paid to the franchisor or its affiliate.
- Children’s Music Academy charges an initial franchise fee of $32,000, with lower fees of $20,000 for military members, $15,000 for former or existing employees and $5,000 to $15,000 for an existing franchisee’s additional franchise.
- Children’s Music Academy charges a royalty of 8% of gross sales, currently collected on tuition sales only, plus a $50 monthly technology fee and $10 a month for each email address.
- Children’s Music Academy may charge up to 3% of gross sales for a brand fund but does not currently charge it, and it collected no brand fund contributions in 2025.
- Children’s Music Academy had 24 locations at the end of 2025, 22 franchised and 2 company-owned, the same total as at the end of 2023 and 2024.
- Children’s Music Academy reported no terminations, non-renewals, reacquisitions or other closures of franchised locations in 2023, 2024 or 2025.
These figures come from Children’s Music Academy's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Children’s Music Academy Conversion Package →- Item 19 contains no financial performance representation. The franchisor states that it does not make representations about the past financial performance of company-owned or franchised outlets. A buyer of an existing outlet may be given that outlet’s actual records.
- $33,750 of the $72,200 low-end cost to open is paid to the franchisor or its affiliate, 46.7%* of the total. At the high end it is $34,250 of $138,200, or 24.8%*. The payments are the $32,000 initial fee and $1,750 to $2,250 of branded student kits.
- The royalty is 8% of gross sales, and the franchisor currently collects it on tuition sales only. Gross sales as defined also include merchandise and product sales. The franchisor reserves the right to expand what it charges royalties on, with reasonable advance notice.
- The brand fund, local advertising requirement and advertising cooperative are permitted but not in force. The brand fund may be up to 3% of gross sales, local advertising up to 3% and a cooperative 1% to 2%. The franchisor collected no brand fund contributions in 2025.
- Total locations stayed at 24 from the end of 2023 to the end of 2025. In 2025 the affiliate sold two Denver academies to franchisees, so franchised locations went from 20 to 22 and company-owned locations from 4 to 2. Item 20 shows no agreements signed but not yet opened at the end of 2025.
Revenue
What the Children’s Music Academy FDD discloses about revenue
The 2026 FDD makes no financial performance representation. Item 19 states that the franchisor does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. The FDD gives no average revenue, median, range or profit figure for any academy.
A buyer of an existing outlet may receive that outlet’s records. Item 19 says that if you are purchasing an existing outlet, the franchisor may provide you with the actual records of that outlet.
Item 7 assumes no sales in the first three months. The additional funds line of $10,000 to $20,000 covers the first three months after opening and assumes that none of the expenses are offset by sales in that period. It excludes royalties, advertising fees and debt service.
The franchisee list is in Exhibit D. The FDD lists the names, addresses and telephone numbers of current franchisees there. With 22 franchised academies at the end of 2025, current owners are the source of revenue information the FDD itself does not give.
Term and territory
Term, territory and opening
| Provision | Terms |
|---|---|
| Initial term | 7 years |
| Successor terms | Five further terms of 7 years, up to 42 years in all* |
| Territory | Generally about 15 to 20 preschool and elementary schools |
| Premises | Typically 900 to 1,100 square feet, in a freestanding unit, shopping mall or strip mall |
| Typical time to open | Six to twelve months from signing |
| Required opening | Within twelve months of signing |
| Initial fee, standard | $32,000 |
| Initial fee, military | $20,000 |
| Initial fee, former or existing employee | $15,000 |
| Initial fee, additional franchise for an existing franchisee | $5,000 to $15,000 |
| Initial fee, existing licensee of the affiliate | Waived |
Source: Children’s Music Academy 2026 FDD, Items 5, 7, 11, 12 and 17. The 42-year figure is an Averan sum of the initial term and five successor terms*.
The territory is defined by a count of schools. Item 12 says it is based on geography, the number of elementary schools and demographics, and will generally contain about 15 to 20 preschool and elementary schools. Boundaries may be drawn by zip code, street, county or map.
A metro area or non-traditional location may receive no protected territory. Item 12 defines a metropolitan area as one where the population over a 24-hour period exceeds 50,000 persons per square mile. The territory is not exclusive, and its continuation does not depend on reaching a sales volume.
The fee for an additional franchise is set case by case. Item 5 says it depends on the number of franchises purchased, compliance history, experience and the franchisor’s then-current requirements.
A successor agreement may carry different terms. Item 17 says the then-current franchise agreement signed for a successor term may have different terms, including higher royalty and advertising contributions. The renewal fee is 50% of the then-current initial franchise fee.
By location
Locations by state, end of 2025
| State | Franchised | Company-owned |
|---|---|---|
| California | 3 | 0 |
| Colorado | 6 | 2 |
| Hawaii | 1 | 0 |
| Kentucky | 1 | 0 |
| Minnesota | 1 | 0 |
| Missouri | 1 | 0 |
| Nebraska | 2 | 0 |
| North Carolina | 1 | 0 |
| North Dakota | 4 | 0 |
| Pennsylvania | 2 | 0 |
| All | 22 | 2 |
Source: Children’s Music Academy 2026 FDD, Item 20, Tables 3 and 4. The two Colorado franchised additions in 2025 are the two affiliate academies sold to franchisees.
Item 19 does not report results by academy, by group or by year. With no financial performance representation, the FDD gives no way to compare higher- and lower-revenue academies.
Colorado holds the company-owned academies and eight of the 24 locations. The affiliate, Children’s Music Academy of Denver Inc., operates academies in Centennial, open since August 1983, and Castle Rock, open since April 2015. It sold its Park Hill and Congress Park academies in Denver to franchisees in August 2025.
Every state count except Colorado and North Carolina was unchanged across 2023, 2024 and 2025. North Carolina’s academy opened in 2023. Item 20 lists one transfer between franchisees in North Dakota in 2023 and one in 2024.
Brand charges
Brand charges
| Charge | Amount | Status at issue date |
|---|---|---|
| Royalty | 8% of gross sales | Currently collected on tuition sales only; due monthly by the 15th |
| Brand fund | Up to 3% of gross sales | Not currently charged |
| Local advertising | Spend up to 3% of gross sales; any shortfall is paid to the brand fund or the franchisor | No current requirement |
| Advertising cooperative | 1% to 2% of gross sales | No cooperative exists |
| Technology fee | $50 a month | Due monthly from the first class |
| Email address | $10 a month for each address, billed annually | At least one address required |
| Curriculum fee | $200 per course | When a new curriculum is adopted |
| Conference fee | $150 per person | Due whether or not the owner attends |
| Fixed charges in force, one email address | $60 a month*, $720 a year* | Plus the 8% royalty on tuition |
Source: Children’s Music Academy 2026 FDD, Item 6 (pages 11 to 17) and Item 11. With no revenue figure in Item 19, total brand charges cannot be stated as a share of an average academy’s sales. The total row is an Averan sum of the technology fee and one email address*.
The charges in force today are the 8% royalty, the $50 technology fee and $10 a month for each email address. The brand fund, the local advertising requirement and the cooperative are written into the agreement but not currently in force.
If the brand fund is introduced at its 3% maximum, royalty and brand fund together would be 11%* of gross sales. The franchisor may introduce a brand fund contribution of up to 3% of monthly gross sales on 30 days’ notice. It collected and spent no brand fund contributions in 2025.
The FDD sets no minimum royalty. Item 6 lists the royalty as a percentage of gross sales with no dollar minimum. The technology and email fees are fixed amounts due regardless of sales.
Fixed-dollar fees may rise with the Consumer Price Index. Item 6 says the franchisor may increase them at most once a year, and by a maximum of 15% per year calculated cumulatively, plus any increases in third-party costs.
Early termination carries liquidated damages of at least $30,000. Item 6 calculates them from the monthly average of royalties and brand fund contributions multiplied by the lesser of 36 or the months left in the term.
Cost to open
Cost to open
| Line | Low | High | Paid to |
|---|---|---|---|
| Initial franchise fee | $32,000 | $32,000 | Franchisor |
| Furniture, fixtures and décor | $3,500 | $3,500 | Suppliers |
| Computer and software | $3,000 | $4,500 | Third parties |
| Three months’ lease payments | $2,500 | $7,500 | Landlord |
| Leasehold improvements | $5,000 | $35,000 | Landlord and contractors |
| Utility and security deposits | $100 | $500 | Third parties |
| Signage | $500 | $4,500 | Suppliers |
| Licenses and permits | $100 | $200 | Authorities |
| Insurance | $3,000 | $7,000 | Insurer |
| Professional fees | $1,000 | $3,500 | Advisors |
| Office equipment and supplies | $3,000 | $4,500 | Suppliers |
| Opening inventory | $3,500 | $6,500 | Franchisor and vendors |
| Training travel and living | $4,000 | $6,000 | Travel providers |
| Grand opening program | $1,000 | $3,000 | Third parties |
| Additional funds, three months | $10,000 | $20,000 | Third parties |
| Total | $72,200 | $138,200 |
Source: Children’s Music Academy 2026 FDD, Item 7 (pages 18 to 20) and cover page. The lines add to the printed totals.
$33,750 to $34,250 of the total is paid to the franchisor or its affiliate. That is the $32,000 initial fee plus $1,750 to $2,250 of branded student kits, and it is 46.7%* of the low total and 24.8%* of the high total.
Leasehold improvements have the widest range, $5,000 to $35,000. The estimate excludes any construction allowance a landlord may offer. Centers are typically 900 to 1,100 square feet.
Opening inventory includes the branded student kits. They contain a book bag, magnet board and magnets, colored pencils, music books and t-shirts. Item 7 says about half of opening inventory is bought from the franchisor and half from approved suppliers, and the cost depends on classroom size and expected enrollment in the opening semester.
Initial training is free for up to three people. The franchisee pays travel, lodging and meals, which is the $4,000 to $6,000 training line. Additional trainees are $200 per person.
The grand opening campaign is $1,000 to $3,000. The franchisor sets the amount within that range based on planned classes, city size and territory.
Locations
Locations, 2023 to 2025
| Year | Franchised | Company-owned | Total | Franchised opened | Franchised closed, terminated or not renewed | Transfers |
|---|---|---|---|---|---|---|
| 2023 | 20 | 4 | 24 | 1 | 0 | 1 |
| 2024 | 20 | 4 | 24 | 0 | 0 | 1 |
| 2025 | 22 | 2 | 24 | 2 | 0 | 0 |
Source: Children’s Music Academy 2026 FDD, Item 20, Tables 1 to 5. At the start of 2023 there were 19 franchised and 4 company-owned locations. The 2025 franchised openings are the two affiliate academies sold to franchisees.
The system had 23 locations at the start of 2023 and 24 at the end of each year from 2023 to 2025. One franchised academy opened in North Carolina in 2023. In 2025 the affiliate sold two academies to franchisees, which moved two locations from company-owned to franchised.
Item 20 shows no terminations, non-renewals, reacquisitions or other closures in the three years. The company-owned table also shows no closures; its only change is the two sales to franchisees in 2025.
No agreements were signed but not yet opened at the end of 2025. The franchisor projects no new franchised or company-owned openings in the next fiscal year.
The franchisor collected no separate initial franchise fees on the two 2025 sales. Item 5 says this about the sale of the two affiliate-owned locations to franchisees.
Questions we get asked
Questions owners ask
How much does a Children’s Music Academy franchise make?
Children’s Music Academy’s 2026 FDD, issued 15 April 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A Children’s Music Academy franchise costs $72,200 to $138,200 to open, and $33,750 to $34,250 of that is paid to the franchisor or its affiliate.
How much does it cost to open a Children’s Music Academy franchise?
The 2026 FDD puts the total investment at $72,200 to $138,200, of which $33,750 to $34,250 is paid to the franchisor or its affiliate. The largest variable lines are leasehold improvements, $5,000 to $35,000, and three months of additional funds, $10,000 to $20,000.
What fees does a Children’s Music Academy franchisee pay?
A royalty of 8% of gross sales, currently collected on tuition sales only, a $50 monthly technology fee and $10 a month for each email address. The agreement allows a brand fund of up to 3% of gross sales, a local advertising requirement of up to 3% and a cooperative of 1% to 2%, but none is currently in force. There is no minimum royalty.
What is the average revenue of a Children’s Music Academy franchise?
The FDD does not say. Item 19 makes no financial performance representation, so it gives no average, median or profit figure. Current franchisees are listed in Exhibit D.
How much is the Children’s Music Academy initial franchise fee?
The standard fee is $32,000. Military members pay $20,000, former or existing employees $15,000, and an existing franchisee pays $5,000 to $15,000 for an additional franchise. The fee is waived for an existing licensee of the affiliate.
How many Children’s Music Academy locations are there?
There were 24 locations at the end of 2025: 22 franchised and 2 company-owned. The total was also 24 at the end of 2023 and 2024. Item 20 shows no franchised closures, terminations or non-renewals in those three years, and no signed agreements waiting to open.
How big is a Children’s Music Academy territory?
Item 12 says a territory will generally contain about 15 to 20 preschool and elementary schools, based on geography, school count and demographics. It is not exclusive, and a location in a metro area or a non-traditional site may not receive a protected territory.
Questions worth putting to Children’s Music Academy
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Children’s Music Academy see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Children’s Music Academy locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Children’s Music Academy owner
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Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Children’s Music Academy Franchising, Inc.’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Children’s Music Academy is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Children’s Music Academy Franchising, Inc., 2026 Franchise Disclosure Document, issued 15 April 2026.