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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.

Chart 1: Net Sales 2016 Summary – Affiliate-Owned And Franchised Schools*

 2016 System Total2016 System Average2016 System Average
Open 24+ MonthsOpen 24+ MonthsOpen 36+ Months
Net Sales$6,559,661$655,966$725,897
Schools Attaining Average4 of 10 (40%)4 of 8 (50%)
Median$601,588$766,602
Highest Number in Range$1,035,081$1,035,081
Lowest Number in Range$268,064$384,758

The chart above presents the Net Sales achieved by our affiliate-owned and franchise schools open 24+ months during the 2016 calendar year. Please see Item 19 of our April 20, 2017 FDD for further details.

Chart 2: Net Sales 2016 – Affiliate-Owned And Franchised Schools*

 2016 System Total 2016 System
Average
2016 System
Average
      
Open 24+ MonthsOpen 24+ MonthsOpen 36+ Months
Private Lessons$4,338,648$433,865$475,518
Schools Attaining Average5 of 10 (50%)4 of 8 (50%)
Median$401,891$497,317
Highest Number in Range$679,984$679,984
Lowest Number in Range$220,602$291,021
Band, Group, Early Childhood$1,576,134$157,613$175,650
Schools Attaining Average5 of 10 (50%)4 of 8 (50%)
Median$157,824$181,787
Highest Number in Range$243,548$243,548
Lowest Number in Range$42,344$77,778
Camps$553,563$55,356$62,196
Schools Attaining Average3 of 10 (30%)3 of 8 (38%)
Median$49,585$54,363
Highest Number in Range$129,771$129,771
Lowest Number in Range$10,721$18,247
Parties$175,272$17,527$16,395
Schools Attaining Average5 of 10 (50%)4 of 8 (50%)
Median$15,143$15,143
Highest Number in Range$37,516$31,684
Lowest Number in Range$5,101$5,101
DJ$ 179,247$59,749$59,749
Schools Attaining Average1 of 3 (33%)1 of 3 (33%)
Median$42,037$42,037
Highest Number in Range$130,685$130,685
Lowest Number in Range$6,525$6,525
Other: Retail, Studio, Satellite$205,041$20,504$23,488
Schools Attaining Average4 of 10 (40%)3 of 8 (38%)
Median$12,542$17,385
Highest Number in Range$55,205$55,205
Lowest Number in Range$6,452$6,452
Less: Discounts($406,018)($40,602)($42,643)
Schools Attaining Average6 of 10 (60%)4 of 8 (50%)
Median($42,350)($42,350)
Highest Number in Range($60,873)($60,873)
Lowest Number in Range($16,209)($21,198)
Less: Cost of Goods Sold($62,227)($6,223)($7,113)
Schools Attaining Average4 of 10 (40%)3 of 8 (38%)
Median($5,824)($6,575)
Highest Number in Range($11,285)($11,285)
Lowest Number in Range($2,291)($4,247)
Net Sales$6,559,661$655,966$725,897
Schools Attaining Average4 of 10 (40%)4 of 8 (50%)
Median$601,588$766,602
Highest Number in Range$1,035,081$1,035,081
Lowest Number in Range$268,064$384,758
Direct Instructional Costs$1,770,658$177,066$194,704
Schools Attaining Average4 of 10 (50%)4 of 8 (50%)
Direct Margin %73%73%73%
Salary/Benefits/Taxes$1,296,073$129,607$140,590
Schools Attaining Average6 of 10 (60%)6 of 8 (75%)
Credit Card/Bank Fees$159,515$15,952$17,174
Schools Attaining Average4 of 10 (50%)4 of 8 (50%)
Telephone/ISP/Utilities$112,486$11,249$11,795
Schools Attaining Average4 of 10 (40%)3 of 8 (38%)
Bad Debt Expense$20,404$2,040$2,543
Schools Attaining Average3 of 10 (30%)3 of 8 (38%)
Copyright/Harmony Fees$63,900$6,390$6,539
Schools Attaining Average4 of 10 (40%)4 of 8 (50%)
Minor Equip Purchase/Repair$42,136$4,214$4,639
Schools Attaining Average4 of 10 (40%)4 of 8 (50%)
Property Tax/Other Tax$17,238$1,724$2,155
Schools Attaining Average5 of 10 (50%)4 of 8 (50%)
Insurance$56,780$5,678$5,200
Schools Attaining Average2 of 10 (20%)1 of 8 (13%)
Office Supplies$30,280$3,028$2,963
Schools Attaining Average3 of 10 (30%)2 of 8 (25%)
Other$85,158$8,516$8,042
Schools Attaining Average4 of 10 (40%)4 of 8 (50%)
Total Site G&A$1,883,971$188,397$201,639
Schools Attaining Average6 of 10 (60%)6 of 8 (75%)
G&A as a % of Revenue29%29%28%
Total Marketing$454,789$45,479$48,462
Schools Attaining Average4 of 10 (40%)4 of 8 (50%)

The chart above presents the Net Sales, direct instructional costs, site general and administrative expenses, and marketing expenses achieved by our affiliate-owned and franchise schools open 24+ months during the 2016 calendar year. Please see Item 19 of our April 20, 2017 FDD for further details.

Chart 3: All Schools Opened 36+ Months as of December 31, 2016*
 Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month
10
Month
11
Month
12
TOTAL
Average Net Sales$6,728$18,216$19,504$25,112$28,899$28,776$31,217$28,430$33,549$36,596$35,874$34,767$327,668
Number of Schools Reporting666666666666
Schools Attaining Average and
%
2 / 33%3 / 50%3 / 50%2 / 33%3 / 50%3 / 50%4 / 67%3 / 50%3 / 50%4 / 67%3 / 50%3 / 50%
Median$3,154$18,464$19,263$24,071$29,857$29,031$33,303$30,044$35,159$38,380$34,699$35,009
Highest Number in Range$16,395$32,415$31,615$37,490$42,999$41,888$47,102$37,006$41,945$56,328$57,551$51,010
Lowest Number in Range$2,074$5,042$1,951$8,459$10,908$9,876$12,140$13,466$17,873$16,730$16,599$13,952

 Month
13
Month
14
Month
15
Month
16
Month
17
Month
18
Month
19
Month
20
Month
21
Month
22
Month
23
Month 24TOTAL
Average Net Sales$42,430$40,325$41,723$41,447$41,386$39,327$41,509$39,692$45,223$46,449$43,855$41,564$504,930
Number of Schools Reporting666666666666
Schools Attaining Average
and %
3 / 50%3 / 50%3 / 50%3 / 50%3 / 50%2 / 33%4 / 67%5 / 83%4 / 67%3 / 50%3 / 50%4 / 67%
Median$42,265$42,278$43,473$43,345$42,336$36,025$44,898$41,531$49,126$47,767$45,331$42,882
Highest Number in Range$62,429$56,438$66,582$64,015$61,505$59,183$49,727$44,275$55,574$61,005$54,649$53,865
Lowest Number in Range$18,478$14,719$14,135$19,826$20,958$20,235$25,594$28,420$26,677$30,994$27,214$24,574

 Month
25
Month
26
Month
27
Month
28
Month
29
Month
30
Month
31
Month
32
Month
33
Month
34
Month
35
Month
36
TOTAL
Average Net Sales$41,044$46,061$48,925$44,708$47,268$45,457$44,865$43,078$49,532$53,882$52,934$58,052$575,805
Number of Schools Reporting666666666666
Schools Attaining Average
and %
3 / 50%3 / 50%2 / 33%2 / 33%3 / 50%3 / 50%2 / 33%3 / 50%3 / 50%2 / 33%3 / 50%4 / 67%
Median$40,064$46,304$43,567$38,642$42,755$44,129$41,637$43,033$51,668$49,696$52,777$63,555
Highest Number in Range$58,711$68,053$75,639$67,400$69,846$62,780$63,092$51,417$59,590$79,252$68,933$78,622
Lowest Number in Range$22,391$23,500$24,042$30,053$30,252$30,148$33,876$33,485$35,527$37,589$34,888$28,928

 Month
37
Month
38
Month
39
Month
40
Month
41
Month
42
Month
43
Month
44
Month
45
Month
46
Month
47
Month
48
TOTAL
Average Net Sales$53,245$57,118$54,292$52,132$58,362$49,055$53,198$52,356$58,490$63,149$62,883$66,804$681,084
Number of Schools Reporting666666555555
Schools Attaining Average
and %
2 / 33%2 / 33%2 / 33%2 / 33%2 / 33%3 / 50%2 / 40%2 / 40%3 / 60%3 / 60%2 / 40%2 / 40%
Median$50,250$53,677$47,629$41,345$52,644$47,900$48,942$50,528$61,408$64,744$62,765$62,859
Highest Number in Range$79,179$82,660$95,501$90,222$87,261$70,147$71,241$59,463$72,281$80,215$78,304$87,711
Lowest Number in Range$25,694$29,412$25,592$30,916$36,685$29,677$36,509$44,400$41,313$41,445$42,865$41,683

Presented above are average, monthly, Net Sales data for the affiliate-owned and franchised schools that were open and operating 36+ months as of December 31, 2016 during each of their first 48 months of operations (or for fewer than 48 months, if they have been open fewer than 48 months). Please see Item 19 of our April 20, 2017 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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