School of Rock franchise unit economics
School of Rock franchisees run performance-based music schools in leased premises that sell monthly music tuition.
School of Rock franchise at a glance
School of Rock’s Item 19 reports 2025 sales and students for 243 franchised schools and 46 company-owned schools, and a profit and loss statement for the company-owned schools and none for franchised schools.
School of Rock franchisees averaged $683,344 of sales in 2025, with a median of $658,980, according to Item 19 of School of Rock’s 2026 FDD, issued 15 April 2026. The 243 in that group are 88%* of School of Rock’s 276 locations. Fees paid to School of Rock come to about 11%* of sales.
- A School of Rock franchise costs $378,050 to $756,100 to open, including a $59,900 initial franchise fee, according to the brand's 2026 FDD.
- School of Rock charges a royalty of 8% of sales and a 3% brand fund contribution.
- School of Rock reported 276 franchised locations in its 2026 FDD.
- 47% of reporting School of Rock locations reached the average.
- School of Rock’s 46 company-owned schools averaged net operating income of 24.2% of sales in 2025 after an imputed 8% royalty. School of Rock’s FDD takes it after cost of sales, management and administrative labor, rent, marketing, technology fees, the imputed royalty and other expenses, and before taxes and depreciation.
- At the average School of Rock location, wages took 14.7%, rent and space costs took 9.8% and cost of goods took 36.7% of sales.
- Work out School of Rock's fees at your own sales with the minimum fee calculator.
These figures come from School of Rock's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- Company schools earn $688 more per student a year. That is $4,506 against $3,818 *, 18.0% more from each child on a roll 20.7% larger.
- The company's own schools keep 24.2% of sales after an imputed 8% royalty. That is $235,955 on $973,321, with cost of sales at 36.7%, rent at 9.8% and management labor at 9.8%.
- Carrying that same fixed cost base at the franchised average leaves 12.6%. $86,423 against $165,656 on a straight ratio *, because rent, management and administration change little with volume.
- The royalty and brand fund take 11% of sales. That is 8% royalty and 3% brand fund, $75,168 a year at the franchised average *, plus a flat $4,141 technology charge. Local advertising adds 3%.
- Tenant improvement allowances ran $26,630 to $170,011 in 2025. $10 to $57 a square foot with an average of $31, which is $90,985 at the 2,935 square feet a 2025 school averaged *.
How much does a School of Rock franchise make?
The average School of Rock unit reported $683,344 of revenue in the 2026 FDD, and the median reported $658,980. The brand’s disclosure document puts net operating income at its company schools at 24.2% of revenue. Fees come off the top first, at about 11% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top School of Rock performers
School of Rock publishes a range for its schools instead of grouped averages. The highest-selling School of Rock franchised school had $1,820,477 of total sales in 2025. The lowest-selling School of Rock franchised school had $149,336. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $658,980. The average was $683,344. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The highest-selling School of Rock franchised school sells 12.2× the lowest-selling one. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Locations run 2,500 to 3,000 square feet. The build sets how much you can sell.
- Opening cost range.Opening costs $378,050 to $756,100, a 2.0× range inside one brand.
- Lease cost.Occupancy cost ran 9.8% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
Live operating levers
- Products and materials.Cost of sales, mostly teacher wages, takes 36.7% of sales at School of Rock company schools, against net operating income of 24.2%. The levers are teacher hours against enrollment and tuition pricing.
- Occupancy cost.Rent and building costs take 9.8% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Enrollment.Track how many students a School of Rock school enrolls, the monthly tuition each pays, and how long families stay.
- Fees.School of Rock’s fees run about 11.0% of sales, and School of Rock sets no minimum royalty.
Context you underwrite around
- Locations included.These figures cover 243 of 276 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard.
- The franchisor reports its own locations too.The franchisor reports its own locations alongside the franchised ones. Treat them as a guide to what is possible. They do not represent the system: they are operated by the franchisor, usually mature, and usually few.
The only profit and loss
Profit and loss for company-owned schools, 2025
| Line | Average | Share of sales | Reaching the average | Median |
|---|---|---|---|---|
| Total sales | $973,321 | 100.0% | 20 (43.5%) | $920,319 |
| Cost of sales | $356,797 | 36.7% | 20 (43.5%) | $328,617 |
| Gross profit | $616,524 | 63.3% | 21 (45.7%) | $564,211 |
| Management labor | $95,858 | 9.8% | 19 (41.3%) | $84,145 |
| Rent | $95,864 | 9.8% | 21 (45.7%) | $90,729 |
| Imputed royalty at 8% | $77,866 | 8.0% | 20 (43.5%) | $73,626 |
| Administrative labor | $46,946 | 4.8% | 25 (54.3%) | $47,823 |
| Marketing | $36,755 | 3.8% | 21 (45.7%) | $34,634 |
| Other expenses | $23,141 | 2.4% | 29 (63.0%) | $30,703 |
| Technology fees | $4,141 | 0.4% | 46 (100.0%) | $4,141 |
| Total expenses | $380,569 | 39.1% | 18 (39.1%) | $338,385 |
| Net operating income after operating costs | $235,955 | 24.2% | 20 (43.5%) | $195,915 |
As the brand reported it, reordered here by size within operating expenses.
| Line | Company school, as the brand reported it | At the franchised average, cost ratios held | At the franchised average, fixed costs held |
|---|---|---|---|
| Total sales | $973,321 | $683,344 | $683,344 |
| Cost of sales at 36.7% | $356,797 | $250,498 | $250,498 |
| Marketing at 3.8% | $36,755 | $25,805 | $25,805 |
| Royalty at 8% | $77,866 | $54,668 | $54,668 |
| Rent | $95,864 | $67,304 | $95,864 |
| Management labor | $95,858 | $67,299 | $95,858 |
| Administrative labor | $46,946 | $32,960 | $46,946 |
| Other expenses | $23,141 | $16,247 | $23,141 |
| Technology fees | $4,141 | $2,907 | $4,141 |
| Net operating income after operating costs | $235,955 | $165,656 | $86,423 |
| Share of sales | 24.2% | 24.2% | 12.6% |
Every figure here except the first column is our calculation.
Rent is 9.8% of sales at a company school and 14.0% at the franchised average. Both pay the same $95,864 *. At the lowest-selling franchised school's $149,336 of sales, that rent would be 64.2%. So the minimum of the School of Rock franchised range sits at about two fifths of the company minimum.
Cost of sales is 36.7%, and teachers are most of it. That is $356,797 at a company school. It moves with volume, which makes it the one large line a school at $683,344 has in proportion.
Management and administrative labor together cost $142,804. That is 14.7% of company sales and 20.9% of the franchised average *. A general manager and an administrator is the standard staffing, and it is the first thing a smaller school has to decide about.
Every company school pays the same $4,141 technology fee. 46 of 46 at the average, the one line in the statement that lands identically everywhere. At the lowest-selling franchised school it would be 2.8% of sales * against 0.4%.
The brand’s own locations against yours
Sales and enrollment, company-owned and franchised, 2025
| Measure | Company-owned, 46 schools | Franchised, 243 schools | Difference * |
|---|---|---|---|
| Average total sales | $973,321 | $683,344 | +42.4% |
| Median total sales | $920,319 | $658,980 | +39.7% |
| Highest | $1,978,758 | $1,820,477 | +8.7% |
| Lowest | $363,147 | $149,336 | +143.2% |
| Reaching the average | 20 (43%) | 114 (47%) | n/a |
| Average enrollment | 216 | 179 | +20.7% |
| Median enrollment | 219 | 170 | +28.8% |
| Highest enrollment | 406 | 400 | +1.5% |
| Lowest enrollment | 93 | 49 | +89.8% |
| Reaching the average enrollment | 22 (48%) | 114 (47%) | n/a |
| Sales per student, average * | $4,506 | $3,818 | +18.0% |
| Sales per student, median * | $4,202 | $3,876 | +8.4% |
Sales, enrollment and counts are as the brand reported it; the per-student rows and the difference column are marked *.
The company earns $688 more a year from each student. That is $4,506 against $3,818 *. Across a franchised roll of 179 students that gap is worth $123,152 a year, more than the whole difference in rent, management and administration between the two groups.
The lowest-selling schools are 143% apart; the top schools are 8.7% apart. The top company school bills $1,978,758 and the top franchised one $1,820,477, 8.7% apart. The lowest-selling company school bills $363,147 and the lowest-selling franchised one $149,336, 143% apart.
The lowest-selling franchised school has 49 students. That compares with a company minimum of 93 students and a franchised average of 179. A school at 49 students on a building sized for 179 is carrying the same rent on a quarter of the roll.
The median franchised school bills $658,980 on 170 students. That is $3,876 apiece *, slightly above the franchised average ticket of $3,818, so the larger franchised schools discount.
Fees and what it costs to open
Royalty, brand charges and cost to open
| Level | Total sales | Royalty at 8% | Brand fund at 3% | Local advertising at 3% | Technology | Total with local advertising | Share with local advertising |
|---|---|---|---|---|---|---|---|
| Highest franchised school | $1,820,477 | $145,638 | $54,614 | $54,614 | $4,141 | $259,008 | 14.2% |
| Company school average | $973,321 | $77,866 | $29,200 | $29,200 | $4,141 | $140,406 | 14.4% |
| Franchised average | $683,344 | $54,668 | $20,500 | $20,500 | $4,141 | $99,809 | 14.6% |
| Franchised median | $658,980 | $52,718 | $19,769 | $19,769 | $4,141 | $96,398 | 14.6% |
| Lowest-selling franchised school | $149,336 | $11,947 | $4,480 | $4,480 | $4,141 | $25,048 | 16.8% |
We applied the published rates to filed sales.
| Item | Low | High |
|---|---|---|
| Building work | $195,000 | $417,000 |
| Initial franchise fee | $59,900 | $59,900 |
| Additional funds, three months | $25,000 | $85,000 |
| Equipment | $26,000 | $40,000 |
| Furnishings and finishings | $14,000 | $26,000 |
| Initial rent outlays | $8,500 | $24,800 |
| Security and cameras | $6,500 | $20,000 |
| Signage | $8,000 | $15,000 |
| Architectural fees | $11,700 | $14,000 |
| Advertising | $10,000 | $12,000 |
| Miscellaneous opening expenses | $6,500 | $12,000 |
| Computer and software | $4,000 | $9,000 |
| Permits and licenses | $3,200 | $7,200 |
| Opening inventory | $3,000 | $4,000 |
| Pre-opening training | $2,300 | $3,700 |
| Supplies | $2,000 | $3,000 |
| Prepaid insurance premiums | $750 | $2,000 |
| Utility costs and deposits | $700 | $1,500 |
| Total as the brand reported it | $378,050 | $756,100 |
As the brand reported it, reordered here by size.
Discounts available
- School of Rock takes $5,000 off the first franchise's fee for U.S. military veterans or entities majority-owned by one.
- School of Rock may let select top-performing existing franchisees open a second location in their territory with no initial franchise fee.
From Item 5 of the School of Rock 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The build is half the cost of opening. That is $195,000 to $417,000 of a $378,050 to $756,100 total. A school needs sound isolation in every room and a performance space, which is what puts School of Rock building work at 3.3 to 7.0 times the franchise fee.
An average tenant improvement allowance is $90,985. That is $31 a square foot across 2,935 square feet *. The reported range runs from $26,630 to $170,011, so the gap between the lowest and highest School of Rock allowance, $143,381 *, is larger than the franchise fee.
A company school's net operating income repays the low investment estimate in 1.6 years. That is $235,955 against $378,050 *. At the franchised average with fixed costs held, $86,423 takes 4.4 years, and that is the range the decision actually sits in.
A top-performing franchisee can be offered a second school with the fee waived. That is $59,900 saved, inside the existing territory. Against a build of $195,000 and up, the fee is the smaller half of that decision.
The network of locations
Units opened and closed, 2023 to 2025
| Measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Franchised at start | 211 | 234 | 254 |
| Opened | 25 | 24 | 27 |
| Terminations | 0 | 1 | 2 |
| Non-renewals | 1 | 0 | 0 |
| Reacquired by franchisor | 1 | 3 | 1 |
| Ceased for other reasons | 0 | 0 | 2 |
| Franchised at end | 234 | 254 | 276 |
| Company-owned at end | 47 | 49 | 47 |
| Total outlets at end | 281 | 303 | 323 |
As the brand reported it; every year reconciles exactly *.
The franchised estate grew 30.8% in three years. That is 211 to 276, on 76 openings against 11 departures. That is roughly seven openings for every exit, one of the steadier records in this library.
Forty-six agreements are signed and waiting. That compares with 276 trading schools, and 38 openings are projected for 2026, more than the 27 that actually opened in 2025.
The franchisor bought five schools back across three years and sold two. Company-owned count stayed at 47 from start to finish. The company is holding its own estate steady while the franchised side adds twenty-plus a year.
Two schools closed on termination in 2025 and two ceased for other reasons. School of Rock had 254 schools trading at the start of the year. Four departures against 27 openings is the shape of a system in expansion.
Questions we get asked
Questions owners ask.
How much does a School of Rock franchise make?
School of Rock franchisees averaged $683,344 of sales in 2025, with a median of $658,980, according to Item 19 of School of Rock’s 2026 FDD, issued 15 April 2026. The 243 in that group are 88%* of School of Rock’s 276 locations. Fees paid to School of Rock come to about 11%* of sales.
What should a School of Rock be billing?
Across 243 franchised schools open at least five days a week through all of 2025, total sales averaged $683,344 with a median of $658,980, ranging from $149,336 to $1,820,477. 114 of the 243 reached the average. The 46 company-owned schools averaged $973,321 with a median of $920,319, ranging from $363,147 to $1,978,758. Enrollment at 31 December 2025 averaged 179 students at a franchised school and 216 at a company one, with franchised rolls running from 49 to 400.
What is left after costs at School of Rock?
The one available profit and loss covers the 46 company-owned schools. At $973,321 of sales, cost of sales took 36.7%, leaving gross profit of 63.3%. Management labor took 9.8%, rent 9.8%, an imputed 8% royalty, administrative labor 4.8%, marketing 3.8%, other expenses 2.4% and technology 0.4%. That leaves net operating income of $235,955 or 24.2%. That sits before taxes and depreciation. Holding the same dollar figures for rent, management, administration, other expenses and technology at the franchised average of $683,344 leaves $86,423, or 12.6%, which is marked *.
Why do company schools bill more at School of Rock?
Two reasons, and they are separable. Company schools take 216 students against 179, which is 20.7% more, and they collect $4,506 a student against $3,818, which is 18.0% more, both marked *. The ceilings are close: the top company school bills $1,978,758 against $1,820,477 for the top franchised one. The minimums are apart: $363,147 against $149,336, and 93 students against 49. So the gap is mostly about the bottom of the franchised range.
What fees does School of Rock charge?
School of Rock charges a royalty of 8% of gross sales and a brand fund contribution of 3%, both due on the 10th for the previous month. School of Rock charges a local advertising spend of 3% of annualized gross sales each year, spent in the franchisee's own market. The published School of Rock profit and loss puts the technology charge at a flat $4,141 a school. An advertising cooperative of up to 3% may be established, with none in place at present, and contributions would count against the local advertising requirement. The royalty and brand fund come to $75,168 a year at the franchised average, or 11% of sales. That is marked *, before the flat technology charge and the local advertising spend.
Who does bookkeeping for a School of Rock franchise?
Three things shape the close here. Revenue is a monthly roll, so enrollment count belongs beside the revenue line every month, at $3,818 a student a year, which is marked *. Ten School of Rock students lost is $38,180 of annual revenue, and the loss appears in the roll long before it appears in the bank. Second, cost of sales at 36.7% is mostly teacher wages. Teacher hours follow enrollment with a lag. So the gross profit moves against you in a falling month and for you in a rising one. A monthly teacher-cost-per-student figure catches that earlier than a margin percentage does. Third, the only published profit and loss belongs to company schools at $973,321 of sales. So benchmarking against it needs the fixed lines (rent, management labor, administration) compared in dollars. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
Questions worth putting to School of Rock
These are questions the School of Rock filing leaves open. An owner or a buyer can put them to School of Rock directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does School of Rock see in its highest-selling locations, such as trade area, years open and size?
- 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 School of Rock 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. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →How does your school read against the company's at School of Rock?
We review your unit economics, cash forecast and reporting, built around revenue per student, teacher cost per student, and fixed lines compared in dollars.
Talk to AveranWhere these figures come from.
Every figure here comes from School of Rock Franchising, LLC’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. School of Rock® is a registered 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: School of Rock Franchising, LLC, 2026 Franchise Disclosure Document, issued 15 April 2026.
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School of Rock reads against the rest of the music and art group: Bach to Rock · We Rock The Spectrum · Young Rembrandts. The music and art guide compares all of them on the same figures.
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.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.
- Revenue was the highest it has been. Why did profit not move?It traces where the extra revenue went, line by line.