School of Rock

Can you provide details about the 2 cases where the franchisor was named as defendant? What were the specific claims and how were they resolved?

What was the nature and outcome of the 1 case where the franchisor was plaintiff against a franchisee?

The franchise fee of $59,900 is above the typical range for this category. What does this higher fee include compared to competitors?

The advertising fund rate is 3.0%, above the typical 1.0-2.0% range. How is this fund deployed, and can franchisees see a detailed accounting of how their contributions are spent?

With a 25-year total potential term (above the typical 15-20 year range), what circumstances would allow the franchisor to decline renewal after the initial 10-year term?

The franchise agreement mentions mandatory purchases from franchisor-approved suppliers only. What percentage of franchisee operating costs are typically subject to these supplier restrictions?

How many of the 4 unit closures in 2024 were attributed to owner choice versus business underperformance?

Can you clarify the difference between the 'Closed,' 'Terminated,' and 'Ceased Other' categories in the unit history, and provide specific reasons for each closure type from 2020-2024?

The renewal conditions require meeting 9 specified conditions and payment of one-third of the then-current initial franchise fee. What happens if a franchisee cannot meet these conditions, and is renewal negotiable?

The dispute resolution clause requires binding arbitration in Boston, Massachusetts. Are there any geographic considerations for franchisees located outside the Northeast regarding dispute resolution costs?

The agreement identifies 18 non-curable defaults with potential for immediate termination. Can you provide a list of what these non-curable defaults are so I can assess my risk?

With median gross sales of $732,636, what is the typical net profit margin after royalties, advertising fees, and technology fees for an average franchisee?

The territory is protected but not exclusive—what protections exist against the franchisor opening a competing School of Rock location nearby?

Personal guarantees are required from all franchisee owners and spouses. Are there any circumstances under which this personal guarantee can be released or modified during the franchise term?

Of the 3 litigation cases in the past 3 years, how many involved franchisee complaints about support, training, or operational guidance versus other issues?

What is the typical cost to transfer a franchise to a new owner, given that no transfer fee is listed in the disclosure document?

The renewal process requires one-third of the then-current initial franchise fee. If the franchise fee increases significantly over 10 years, what is the maximum amount a franchisee might owe to renew?

Can you explain the pricing control provisions mentioned in the operational control clause—specifically, how the franchisor sets maximum and minimum prices and what impact this has on franchisee profitability?