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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.

Total & Net Sales 2018 Summary – Affiliate-Owned And Franchised Schools*

 Affiliate-Owned
2018 System Average
Open 60+ Months
Franchised
2018 System Average
Open 24+ Months
Franchised
2018 System Average
Open 36+ Months
Franchised
2018 System Average
Open 60+ Months
Total Sales$869,202$440,420$592,708$710,770
Schools Attaining Average3 of 6 (50%)5 of 14 (36%)2 of 5 (40%)1 of 2 (50%)
Median$907,755$385,013$545,756$710,770
Highest Number in Range$1,175,994$1,011,438$1,011,438$1,011,438
Lowest Number in Range$539,442$181,103$309,766$410,103
Private Lessons$549,449$294,063$401,794$460,885
Schools Attaining Average
3 of 6 (50%)7 of 14 (50%)2 of 5 (40%)1 of 2 (50%)
Median$563,122 $270,528$398,062$460,885
Highest Number in Range
$819,943 $609,444$609,444$609,444
Lowest Number in Range$292,135 $103,223$234,313$312,326
Band, Group, Early Childhood$175,254$91,158$131,280$177,366
Schools Attaining Average3 of 6 (50%)4 of 14 (29%)2 of 5 (40%)1 of 2 (50%)
Median$176,984 $73,552$107,398$177,366
Highest Number in Range$245,829 $287,994$287,994$287,994
Lowest Number in Range$101,932 $27,327$50,938$66,738
Camps$75,301 $34,307$36,883$48,614
Schools Attaining Average2 of 6 (33%)6 of 14 (43%)2 of 5 (40%)1 of 2 (50%)
Median$59,130 $27,980$23,044$48,614
Highest Number in Range$137,953 $80,923$80,923$80,923
Lowest Number in Range$23,834 $13,299$13,391$16,305
Parties$11,785 $8,269$9,352$9,569
Schools Attaining Average3 of 6 (50%)6 of 14 (43%)2 of 5 (40%)1 of 2 (50%)
Median$11,640 $7,548$5,585$9,569
Highest Number in Range$21,723 $23,542$23,542$13,552
Lowest Number in Range$2,157 $1,761$1,761$5,585
DJ$38,482$6,048$3,433n/a
Schools Attaining Average1 of 5 (20%)2 of 5 (40%)1 of 1 (100%)n/a
Median$27,934 $3,433$3,433n/a
Highest Number in Range$98,510 $18,166$3,433n/a
Lowest Number in Range$6,260 $310$3,433n/a
Other: Retail, Studio, Satellite$25,346$10,466$12,712$14,337
Schools Attaining Average
3 of 6 (50%)7 of 14 (50%)2 of 5 (40%)1 of 2 (50%)
Median$24,970$10,467$11,502$14,337
Highest Number in Range$43,011$19,525$19,525$19,525
Lowest Number in Range$11,693$3,327$9,149$9,149
Less: Discounts-$42,431-$27,237-$33,558-$40,092
Schools Attaining Average3 of 6 (50%)6 of 14 (43%)3 of 5 (60%)1 of 2 (50%)
Median-$43,524-$25,218-$37,559-$40,092
Highest Number in Range-$61,143-$58,823-$58,823-$58,823
Lowest Number in Range-$23,937-$7,549-$9,115-$21,360
Less: Cost of Goods Sold-$8,164-$4,760-$5,057-$4,135
Schools Attaining Average2 of 6 (33%)6 of 14 (43%)2 of 5 (40%)1 of 2 (50%)
Median-$6,267-$4,412-$4,602-$4,135
Highest Number in Range-$16,069-$8,568-$6,737-$4,602
Lowest Number in Range-$4,941-$1,813-$3,667-$3,667
Net Sales$818,607$408,424$554,094$666,544
Schools Attaining Average3 of 6 (50%)5 of 14 (36%)2 of 5 (40%)1 of 2 (50%)
Median$852,170$355,975$498,770$666,544
Highest Number in Range$1,113,831$948,947$948,947$948,947
Lowest Number in Range$508,905$166,231$293,914$384,141
Direct Instructional Costs$216,104$118,089$162,154$202,150
Schools Attaining Average
3 of 6 (50%)6 of 14 (43%)2 of 5 (40%)1 of 2 (50%)
Median$226,360$111,218$147,515$201,635
Highest Number in Range$285,671$256,364$256,364$256,364
Lowest Number in Range$136,604$47,201$73,085$146,906
Salary/Benefits/Taxes$160,625$87,142$81,378$93,975
Schools Attaining Average
3 of 6 (50%)6 of 14 (43%)3 of 5 (60%)1 of 2 (50%)
Median$159,845$85,426$84,623$93,975
Highest Number in Range$184,371$158,918$157,743$157,743
Lowest Number in Range$141,951$29,000$29,000$30,208
All Other$57,852$53,091$60,279$64,373
Schools Attaining Average2 of 6 (33%)8 of 14 (57%)1 of 5 (20%)1 of 2 (50%)
Median$49,100$54,963$57,775$64,373
Highest Number in Range$96,561$74,161$74,161$74,161
Lowest Number in Range$37,644$35,218$54,584$54,584
Total Site G&A$218,477$140,233$141,657$158,348
Schools Attaining Average
2 of 6 (33%)5 of 14 (36%)2 of 5 (40%)1 of 2 (50%)
Median$205,582$132,133$139,965$158,348
Highest Number in Range$280,932$231,904$231,904$231,904
Lowest Number in Range$184,705$84,791$84,791$84,791
Total Marketing$52,903$33,966$41,515$49,332
Schools Attaining Average
3 of 6 (50%)6 of 14 (43%)2 of 5 (40%)1 of 2 (50%)
Median$51,920$29,653$36,217$49,332
Highest Number in Range$71,386$69,510$69,510$69,510
Lowest Number in Range$37,661$13,115$18,979$29,154

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 2018 calendar year. Please see Item 19 of our April 25, 2019 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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