Franchising
The CNN Money web site featured School of Rock as one of their Five Hot Franchises on February 12, 2013, stating that there are "more than 10,000 kids enrolled in 105 locations in 31 states, as well as Mexico."
The company has plans to grow to more than 300 locations in the United States and Mexico by 2015.
25 of the locations were owned by the company as of December 16, 2012, the rest by franchisees. Purchasing a franchise requires an initial investment of $137,350 to $304,100 according to a review by Entrepreneur magazine that ranked it #211 of their 2013 Top 500 Franchise Opportunities, up from #289 in 2012, and #318 in 2011. This estimate includes a renewable ten year franchise fee of $49,500. The franchisee also pays an 8% annual royalty fee, and is required to have a net worth of $300,000, and $100,000 cash available. Each location will require from 14 to 21 employees. The majority of the employees are music teachers who are also working musicians.
The franchisee receives training in running the business, IT support including a website, assistance with real estate selection and designing the franchise location, Grand Opening and on-going marketing support, discounts on music equipment and a protected territory. The IT support includes access to a customized task management and internal social productivity site.
The majority of the Schools are in dedicated locations, although in January 2013, the company announced that they intend to expand their program to co-locate with music retailers, who are having difficulty competing with on-line retailers and frequently have surplus floor space. The Charlotte, N.C. location is the model, being co-located in a Sam Ash store.
Read more about this topic: The Paul Green School Of Rock Music