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How Much Money Can I Make?

Bach to Rock attracts franchisees who want to build multiple units

music education franchises have strong revenue streamsAlan Goodstadt and Glenn Fleischman are both passionate amateur musicians who wanted to find a way to get more music into their lives. Alan was an investment banker for 20 years; Glenn was a successful technology executive.

The two entrepreneurs recognized the investment potential in Bach to Rock and became our company’s first franchisees. They built a school in Port Washington, NY, a community on Long Island, and opened a second school in the 3rd quarter of 2014, 18 months ahead of their development schedule.

Music education franchises: multiple revenue streams

The average student at Bach to Rock takes 70 weeks of music instruction, but those aren’t necessarily consecutive. Many children take summers off, for instance, to vacation with their families. Bach to Rock has created multiple streams of revenue to maximize earnings potential for our franchisees. Here are some of the ways our schools make money:

Private lessons. Before students get into ensembles, they typically sign up for some one-on-one instruction.

Band lessons. The most appealing part of the Bach to Rock instruction method is also a moneymaker, since many parents are eager to sign up their kids for an opportunity to perform with a band in public.

Summer camps. This is how it all began for Bach to Rock, and limited-engagement summer sessions are a very popular way to introduce kids to everything our schools have to offer.

Parties and corporate events. Bach to Rock events are popular with all ages — from first-graders to 50-year-olds. They are customized for birthdays, anniversaries, corporate team-building events and more. One of our most requested events, the Karaoke Birthday Party, brings partiers of all ages into our recording studio.

Recording studio. Local bands take advantage of our full-scale 16-channel recording studio, where students also record their music. Bands often come in the mornings (before Bach to Rock classes are underway) and after lessons are over in the evenings.

recording studios in our music education franchises

Whether you’re interested in building your own mini-chain of Bach to Rock franchises or want to invest in a single school, this could be the perfect opportunity for you. Our company has been recognized among the Franchise Gator Top 100 franchises and was included in “Entrepreneur” magazine’s Franchise 500.

Consider the breakdown below from Item 19 of our Franchise Disclosure Document. Please note: Charts 1 and 2 contain affiliate-owned and franchise data.

Total & Net Sales 2017 Summary – Affiliate-Owned And Franchised Schools*

Affiliate-Owned      
School ASchool BSchool CSchool DSchool ESchool F
Total Sales$1,150,785$1,025,184$1,075,180$686,244$576,838$496,625
Private Lessons594,995598,942722,577445,986301,904347,980
Band, Group, Early Childhood215,202209,734278,753152,198163,845108,634
Camps153,827117,93329,95153,37070,12225,564
Parties27,78021,9828,97818,5195,2364,168
DJ124,63139,6990027,6683,022
Other: Retail, Studio, Satellite, Events34,35036,89434,92116,1718,0637,257
Less: Discounts(57,194)(61,614)(51,357)(32,660)(32,827)(32,779)
Less: Cost of Goods Sold(7,535)(8,602)(11,598)(5,351)(1,765)(3,721)
Net Sales1,086,056954,9681,012,225648,233542,246460,125
Direct Instructional Costs271,077271,004239,048177,344143,213120,560
Direct Margin %75.0%71.6%76.1%72.6%73.6%73.8%
Salary/Benefits/Taxes198,798208,309217,419154,617136,967414,070
Credit Card/Bank Fees26,38322,98822,82914,19511,85110,553
Telephone/ISP/Utilities20,0499,77914,12910,15014,3267,204
Bad Debt Expense3,6962,1801,2731,2733,0001,272
Copyright/Harmony Fees9,1209,1207,9206,2207,4205,970
Minor Equip Purchase/Repair2,2696,3487,9213,0245,9092,618
Property Tax/Other Tax4,1254,9663,0791,3162,9821,718
Insurance4,4494,9074,4584,4083,9193,119
Office Supplies3,1262,7472,1703,0271,9891,831
Other9,7252,8097,7051,6552,6273,118
Total Site G&A281,740274,153288,903199,885190,990178,473
G&A as a % of Revenue25.9%28.7%28.5%30.8%35.2%38.8%
Total Marketing71,58564,20578,94845,15540,02537,549

Franchisee-Owned     
School ASchool BSchool CSchool DSchool E
Total Sales1,009,498$608,923$521,841$428,237$194,778
Private Lessons629,973387,349362,435310,564152,486
Band, Group, Early Childhood266,723129,235115,50482,18724,550
Camps77,04247,58422,97919,6518,193
Parties19,43028,6675,6915,7164,675
DJ00000
Other: Retail, Studio, Satellite, Events16,33116,08815,23210,1184,874
Less: Discounts(50,969)(45,888)(34,989)(24,340)(7,765)
Less: Cost of Goods Sold(3,572)(3,929)(7,535)(4,599)(9,997)
Net Sales954,957559,106479,317399,298183,016
Direct Instructional Costs240,037163,850134,372140,20349,690
Direct Margin %74.9%70.7%72.0%64.9%72.8%
Salary/Benefits/Taxes168,057104,598111,93035,91642,658
Credit Card/Bank Fees24,69713,5398,98511,2726,773
Telephone/ISP/Utilities14,05014,3338,9999,7136,517
Bad Debt Expense3079000
Copyright/Harmony Fees7,0706,2206,4705,4515,370
Minor Equip Purchase/Repair2,1341,1993352,96929
Property Tax/Other Tax001,090172286
Insurance13,01410,8495,2356,3244,772
Office Supplies8,3962,87110,6022,6381,058
Other6,8877,68511,74011,84410,643
Total Site G&A244,335161,373165,38786,29978,106
G&A as a % of Revenue25.6%28.9%34.5%21.6%42.7%
Total Marketing44,38533,48940,50930,66115,170

The chart above presents the Total & Net sales, direct instructional costs, site general and administrative expenses, and marketing expenses achieved by our affiliate-owned and franchise schools open more than 2 years during the 2017 calendar year. Please see Item 19 of our April 20, 2018 FDD for further details.

Disclaimer:
* Additional details on these figures are included in the Franchise Disclosure Document (FDD).

1. This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. An offer is made only by Franchise Disclosure Document (FDD). Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states or a country whose laws regulate the offer and sale of franchises, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction.

2. Actual results vary from franchisee to franchisee and we cannot estimate or predict the results that you may experience as a franchisee.  Your individual financial results are likely to differ from the results shown in the charts. Your results will be affected by factors such as prevailing economic or market area conditions, demographics, geographic location, interest rates, your capitalization level, the amount and terms of any financing that you may secure, the property values and lease rates, your business and management skills, staff strengths and weaknesses, and the cost and effectiveness of your marketing activities.

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