Updated January 28, 2019.
Detailed Estimates of Bach to Rock Franchise Costs Based on Item 7 (Estimated Initial Investment) of Bach to Rock’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $35,000
2. Harmony Gateway License Fee: $5,000
3. Real Estate; Prepaid Rent and Security Deposit: $5,500 to $15,000
- The figures in the chart reflect Bach to Rock’s current prototypical model, which is approximately a 2,250 square foot space with estimated rental charges of approximately $12 to $45 per square foot.
- The figures also reflect rental charges for the build-out phase, the initial 3-month operation phase, and a one-month security deposit.
- The estimate of square foot rental charges for commercial space is based on Bach to Rock’s affiliates’ experience in leasing space for affiliate-owned Schools from 2012 through 2017, and the experience of Bach to Rock’s franchisees who signed leases for Schools from 2012 through 2017.
- The figures include a partial rent reduction or abatement prior to opening and for a short while after opening.
4. Leasehold Improvements: $150,000 to $260,000
- These improvements may include, for example, wiring, flooring, sheetrock, plumbing, paint, HVAC, lighting, millwork, sound reduction or attenuation, and decor items which must be constructed according to Bach to Rock’s specifications.
- The estimates are for a prototypical (approximately 2,250 square feet) space.
- You may be able to obtain a leasehold allowance covering a portion of the costs of constructing the leasehold improvements from the landlord.
- The figures in the chart are for the build-out of a “plain vanilla shell” location.
- The low end of the range reflects estimated costs after receiving allowances from the landlord and/or in lower cost build out regions, and the high end of the range includes estimates if you are not able to obtain landlord allowances and/or are in higher cost build out regions.
- Partial or fully alarmed space and partial or fully sprinkled space may be more than the figures in the chart.
5. Signage: $4,000 to $9,000
- Estimate includes exterior, illuminated signage visible from the road, and interior signage.
6. Furniture and Fixtures: $3,500 to $9,000
- The estimate includes office furniture, student chairs, and lobby furniture.
7. Architectural Plans and Design: $6,500 to $12,500
- The figures in the chart reflect the estimated cost for a franchisee’s architect to take specifications provided by Bach to Rock and make necessary modifications based on the actual size and shape of the commercial space to be leased, and for Bach to Rock’s architect to review a franchisee’s architect’s plans if the franchisee does not use an architect that Bach to Rock approves or designates.
8. Computer System: $3,000 to $7,000
- You are required to purchase certain computer equipment to operate your Computer System, including the point-of-sale system (which includes Harmony Gateway), and to implement the curricula.
9. Equipment: $27,000 to $40,000
- The estimate includes all musical instruments and recording equipment used to deliver the music curriculum.
10. Insurance Deposits and Premiums: $1,500 to $5,000
- The figures in the chart are estimated 3 months premiums (which you should expect to pay before you open, during your buildout period).
11. Travel and Living Expenses During Training: $750 to $7,000
- Bach to Rock provides initial training consisting of a “Franchisee” training component and a “Site Director” training component. The Franchisee training component is for two individuals who will serve in management capacities at your School. The Site Director training component is for you/your Operating Principal and one other employee manager who is the Site Director if your Operating Principal is not the Site Director.
- You will need to arrange and pay for transportation, lodging, and food for yourself (or your Operating Principal) and for your employee(s) during training.
- The estimate in the chart are per person trained.
- Bach to Rock requires that the two managers successfully complete its initial Franchisee training program and that the Operating Principal and Site Director (if not the Operating Principal) successfully complete its initial Site Director training program.
- If you request that Back to Rock send a trainer to the location of the School to conduct any additional initial training and/or any additional on-site training, you will be required to cover the reasonable travel and lodging expenses incurred by Bach to Rock’s trainer; this amount is not reflected in this chart.
12. Grand Opening Advertising: $25,000
- You are required under the Franchise Agreement to spend a minimum of $25,000 on Grand Opening Advertising, but you may wish to spend more on this program (and Bach to Rock may encourage you to spend more depending upon the market in which you will operate).
13. Licenses and Permits: $1,000 to $10,000
- The estimate includes occupancy permits, business permits, and related licenses.
14. Professional Fees: $2,700 to $12,000
- These estimated costs reflect one-time legal and accounting fees that you are likely to incur. Legal and accounting fees may include incorporating your company and setting up its books and records.
15. Inventory, Curriculum, and Course Materials: $1,200 to $6,000
- These items include course workbooks, brochures, recordable DVDs, and giveaways.
16. Pre-Opening Costs: $2,200 to $9,000
- This estimate covers miscellaneous costs and expenses that you are likely to incur to advertise for employees, to cover utility deposits, as well as for payroll and other expenses during training and other operating costs you are likely to incur prior to opening.
17. Additional Funds (3 Months): $18,000 to $38,000
- You will need additional capital to support on-going expenses to the extent that these costs are not covered by sales revenue.
- The estimates above do not include any salary or allowance for an owner’s draw; or any royalty fees, advertising contributions, or other amounts you must pay Bach to Rock.
18. Total Estimated Initial Investment: $291,850 to $504,500