Why Bach to Rock is Great for Investors
Bach to Rock offers a way to affect community, earn income
While we are a creative business, we pay close attention to analytics and unit-level economics and profitability. We’ve built our company to be a worthy brand that allows investors to give back to their communities, dramatically improve the lives of young people and explore the potential for a high rate of return on reasonable investments.
Consider: Your initial investment for a Bach to Rock school will probably be between $360,000 to $505,000, according to our 2015 Franchise Disclosure Document (FDD). Consider the following financial results attained from our affiliate-based and franchised schools. The average Bach to Rock location generated average sales of $646,444***. That’s an average annual EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) before rent of $245,937 during the 2015 calendar year, according to Item 19 in our FDD. Rents vary by market, ranging from $2,500 a month to $8,000 a month.
“I like the fact that Bach to Rock is a sustainable business. It’s rooted in an amenity for a specific community,” says Sameer Patel, who owns a Montessori school and built a Bach to Rock in Bristow, VA. “Bach to Rock might not work in every community, but I think it would be very successful in many communities. I base this on seeing the kinds of activities parents and families are seeking for their kids.
“Bach to Rock creates structure around a fragmented industry,” Sameer says. “I think there is a lot of potential if it’s done well. The bottom line in any successful business or franchise is the ability to operate and execute efficiently.”
Bach to Rock is a good business to invest in based on our financial merits alone. The potential for you to do well is there, given the track record with our schools. The important thing is that if you love music, if you’re passionate about improving the lives of kids and if you believe the arts are an important part of our culture, this may be the perfect investment for you.
How big is the opportunity?
There seems to be more demand for music education now than ever, given that schools are not spending on the arts like they once did. Parents who value cultural education are willing to spend their disposable income on music lessons for their children. Our cost to acquire a customer is around $100, but the customer typically spends much more. Students enrolled in private lessons or band at Bach to Rock stay with us for an average of 70 weeks of instruction. Plus, there are other promising revenue-producing activities at Bach to Rock. About 30% of revenue at our franchises comes from Bach to Rock music camps and birthday parties.
“Obviously these numbers will vary widely market by market, but in any five-mile area with the demographic we shoot for, people spend a lot of money on music education,” says Brian Gross, President of Bach to Rock. “In our fractured industry, there are very few brands that go after that.”
Our business model is scalable, profitable and perfect for the experienced entrepreneur who has a passion for music, education and enriching their community. If you like what you’ve discovered so far, please click the button below to learn more.
* “Net Sales” –This represents the actual net sales for each School in the sample for the period January 1, 2014 to December 31, 2014. Three of the Schools in the sample offered the Beat Refinery program, and the revenues from Beat Refinery are indicated in the line item designated “DJ.” “Net Sales” includes all revenue from the sale of all Courses, services and products offered to customers and clients at or from the School, less discounts and cost of goods sold. However, “Net Sales” does not include any sales for which customers do not pay for the services or products (such as donations and free lessons), customer refunds, sales taxes or other taxes collected from customers and actually transmitted to the appropriate taxing authorities, or sales of equipment not in the ordinary course of business (such as sales of obsolete instruments or audio equipment). The Net Sales data figures are compiled by our affiliates that operate the Schools, or by our franchisee, and they are reported to us. We have not audited or verified the reports, nor have our affiliates or our franchisee confirmed that their reports are prepared in accordance with generally accepted accounting principles. The Net Sales of each School is subdivided into six major subcategories of revenue: private lessons; band, group and early childhood classes; camps; parties; DJ (Beat Refinery); and other revenue sources. These subcategories include sales for which customers do not pay for the services or products such as donations and free lessons.
*** Five, or 50%, of our ten affiliate-owned and franchise schools that were open and operating during all of 2014 achieved results which met or exceeded this amount. There is no assurance, however, that you will do as well. Please see Item 19 of our April 14, 2016 FDD for further details.