In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Bach to Rock franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Bach to Rock franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Bach to Rock franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Bach to Rock’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, median, high, and low net sales for the 6 affiliates and 4 franchisees operating more than 24 months as of December 31, 2016, and the 6 affiliates and 2 franchisees operating more than 36 months as of December 31, 2016 (separately stated)
- 2016 average net sales (private lessons; band, group, early childhood; camps; parties; DJ; other (retail, studio, satellite); less: discounts; less: cost of goods sold) and certain costs and expenses (direct instructional costs; salary/benefits/taxes; credit card/bank fees; telephone/ISP/utilities; bad debt expense; copyright/harmony fees; minor equipment purchase/repair; property tax/other tax; insurance; office supplies; other; total site general and administrative; total marketing) for the 6 affiliates and 4 franchisees operating more than 24 months as of December 31, 2016, and the 6 affiliates and 2 franchisees operating more than 36 months as of December 31, 2016 (separately stated)
Section I – Background Information
13 Things You Need to Know About the Bach to Rock Franchise
Announced Plans to Open Six Franchised Locations by End of 2017
1. In early March, Bach to Rock announced that it had signed franchise development agreements to launch six new schools in Florida, Georgia, New Jersey, North Carolina, Oregon, and South Carolina in the third quarter of 2017. Over the past two years, the brand has grown at “a brisk pace” and opened nine new schools in 2016.
2. Bach to Rock’s president, Brian Gross, said, “Bach to Rock is flourishing. We experienced one of our most positive years in 2016 and the trend continues into 2017. We have an excellent group of new franchisees coming on board. They all share an entrepreneurial spirit, a passion for music education and a desire to become part of the exciting growth our brand represents.”
3. The schools were opened in the following cities by the following franchisees:
- Orlando, Florida: Husband and wife team, Jeff and Jessi Marin
- Atlanta, Georgia: Husband and wife team, Mark and Jennifer Reiser
- Morristown, New Jersey: Husband and wife team, Marc and Lisa Saltzman
- Charlotte, North Carolina: Retired business executive Polly Stephenson
- Portland, Oregon: Husband and wife team, Matt and Nikki Duffne
- Charleston, South Carolina: Husband and wife team, Brad and Cindy Dunnells
Celebrated 10th Anniversary
4. To mark Bach to Rock’s 10th anniversary, the brand opened a new school on October 21 in Northbrook, Illinois and hosted a grand opening celebration. The celebration showcased the specialties of Bach to Rock – “teaching students of all ages to play the music they love in a fun, nurturing, team-oriented, and supportive environment.”
5. According to Brian Gross, president of Bach to Rock, over the past 10 years, the company has “reached over 35,000 children and families with [its] innovative approach to music instruction.”
Opened First South Carolina School
6. At the end of September, Bach to Rock opened its first South Carolina school in Mount Pleasant. During the location’s grand opening event, attendees were able to tour the school, enjoy a free music lesson, learn about individual lessons and group classes, try out free toddler “Mommy and Me” classes, enter prize drawings and giveaways, check out the recording studio, and meet the teachers.
7. The Mount Pleasant school is owned and operated by Brad and Cindy Dunnells, who said that owning a Bach to Rock is “a dream come true.” President of Bach to Rock, Brian Gross, said, “We have been eager to open a Bach to Rock school in South Carolina. The family-oriented nature of Mount Pleasant and its growing population make it ideal. Folks in Mount Pleasant and the communities of Charleston, North Charleston, Isle of Palms and Sullivan’s Island will truly benefit from our innovative and exciting approach to music education.”
Launches New Online Dashboard
8. In early February, Bach to Rock launched MyB2R, a new online dashboard offering real-time access to student progress. With MyB2R, students can track their advancement, obtain homework, and stream pre-recorded music to practice at home.
9. According to Brian Gross, president of Bach to Rock, “Bach to Rock is the only music school that offers an online, real-time information hub for facilitating improved communication between parents, teachers and students. With MyB2R, a detailed, live dashboard is at your fingertips now.”
10. MyB2R provides the following benefits to students, parents, and teachers:
- Documents the individual skills each student is learning and mastering with each concept and assignment
- Provides updates on curriculum progress and homework assignments and completion
- Offers access to a music player library of 300+ multi-tracked and customized recordings of songs by instrument, for students of all levels to accompany
- Shares insights into how each student is learning music – reading, writing, ear-training, playing by reading, playing by ear, improvisation, and repertoire
- Enables teachers to quickly update and monitor each student’s progress in the Bach to Rock curriculum and further assist in student development
11. Bach to Rock was founded in 2007 by Jeff Levin, a music teacher, in Bethesda, Maryland. Soon after opening the first location, Levin sold the company to Cambridge Information Group and worked together to build off the existing curriculum to create a professionally branded and commercialized business.
12. The school was designed to teach children music in a similar way to teaching them to play sports – individual music lessons are combined with playing in a band or ensemble. Bach to Rock began franchising in 2011 and has grown to over 30 locations around the U.S. today.
Entrepreneur’s Franchise 500
13. In 2017, Bach to Rock earned a spot on Entrepreneur’s annual Franchise 500 list for the first time since it began franchising in 2011. The company ranked at No. 280 on the 2017 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Bach to Rock franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Bach to Rock’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
Part 1 – Net Sales 2016 Summary – Affiliate-Owned and Franchised Schools
- Presented below are net sales data for 2016 for 6 affiliate-owned and 4 franchised Bach to Rock Schools that were open and operating for more than 24 months, as of December 31, 2016.