About The Rock Underground Franchise
This franchise is for the operation of a music school under the name and mark “The Rock Underground®” that provides private lessons, forms bands, has group rehearsals, and provides other music programs for children and adults.
The Rock Underground businesses also have an on-site recording studio with a professional sound engineer and offer musical instruments and other merchandise for sale.
We also offer satellite school franchises for existing franchisees.
The Rock Underground Franchise Cost & Fees
Minimum Investment
$83K
Average Investment
$140K
Maximum Investment
$198K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (Currently 1% of Gross Sales) | National brand fund |
| Total Investment Range | $82,500 – $197,600 | Includes build-out, inventory, working capital |
The investment range of $83K–$198K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (Currently 1% of Gross Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $25,000 | $35,000 |
| Website Fee (Note 1) | $300 | $300 |
| Rent – 3 Months (Note 2) | $11,250 | $21,900 |
| Leasehold Improvements (Note 3) | $0 | $45,000 |
| Equipment, Furniture and Fixtures (Note 4) | $22,000 | $42,000 |
| Signage (Note 5) | $2,000 | $4,000 |
| Blue Prints and Plans (Note 6) | $0 | $3,500 |
| Opening Inventory (Note 7) | $2,000 | $5,000 |
| Security Deposits (Note 8) | $1,000 | $1,500 |
| Insurance – 3 Months (Note 9) | $450 | $900 |
| Grand Opening Advertising (Note 10) | $2,500 | $5,000 |
| Travel and Other Expenses While Training (Note 11) | $1,500 | $3,000 |
| Computer System (Note 12) | $3,000 | $4,000 |
| Permits/Licenses (Note 13) | $500 | $3,500 |
| Professional Fees (Note 14) | $1,000 | $3,000 |
| Additional Funds – 3 Months (Note 15) | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of our then-current initial franchise fee, but not less than $17,500 |
| Renewal Fee | 1/3 of our then-current initial franchise fee, but not less than $11,667 |
| Audit Fee | The amount of any deficiency, plus interest and late fees. You must also reimburse the cost of the audit, in certain circumstances |
| Local Advertising | $500 Must be spent monthly |
| Cooperative Advertising | As determined by the members |
| Initial Training Program – Additional and New Employees | Our then-current per person training fee, plus expenses (Current per person training fee = $2,000) |
| Additional On-Site Assistance | Our then-current per diem rate per trainer, plus expenses (Our current per diem rate = $500) |
| Management Fee | 15% of Gross Sales, plus expenses |
| Late/Insufficient Funds Fee | $100 |
| Interest on Overdue Amounts | 1.5% per month or the highest legal rate, whichever is less |
| Suppliers’ Approval | Reasonable cost of inspection and actual cost of test, not to exceed $1,000 |
| Insurance Policies | Amount of unpaid premiums plus a reasonable fee for our obtaining the insurance on your behalf |
| Liquidated Damages | Will vary under circumstances |
| Cost of Enforcement | All costs including attorneys’ fees |
| Indemnification | All costs including attorneys’ fees |
| School Refurbishment | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately six days of training |
| Classroom Training | 18 hours |
| On-the-Job Training | 30 hours |
| Training Location | Bellmore or Commack, New York, at an operating The Rock Underground School, or at another location we designate. |
| Additional Training | We may periodically provide ongoing training programs or seminars which we may designate as mandatory for you and/or your manager. We may charge a reasonable fee for this training if the training is optional. You must pay for all travel costs, room and board and employees’ salaries incurred in connection with attendance at this training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | Yes |
| Territory Size | minimum population of approximately 100,000 people or 3 miles, whichever is less |
| Description | Typically, your Protected Territory is described in terms of a specific geographic radius surrounding your approved location. Protected Territories vary in size depending on population density and other demographic factors, including: the population base; growth trends of population; apparent degree of affluence of population; the density of residential and business entities; location of competing businesses and major and restricting topographical features which clearly define contiguous areas, such as rivers, mountains, major freeways and underdeveloped land areas. In general, the Protected Territory for your School will have a minimum population of approximately 100,000 people or 3 miles, whichever is less. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 1/3 of our then-current initial franchise fee, but not less than $11,667 |
| Renewal Conditions | If you are in good standing, and subject to contractual requirements, you may sign a successor agreement for an additional term of ten years, unless we have determined, in our sole discretion, to withdraw from the geographical area where your Franchised School is located. You may be asked to sign a contract with materially different terms and conditions than your original contract, but the fees in the successor agreement will not be greater than the fees that we then impose on similarly situated franchisees with successor agreements. |
| Transfer Fee | 50% of our then-current initial franchise fee, but not less than $17,500 |
| Transfer Conditions | We will consent to a transfer if: we have not exercised our right of first refusal; all obligations owed to us are paid; you and the transferee have signed a general release; the prospective transferee meets our business and financial standards; the transferee and all persons owning any interest in the transferee sign the then current Franchise Agreement; you provide us with a copy of all contracts and agreements related to the transfer; you or the transferee pay a transfer fee; the transferee or its owners have agreed to be personally bound by all provisions of the Franchise Agreement; the transferee has obtained all necessary consents and approvals of third parties; the transferee refurbishes the School, if we request; you or all of your equity owners have signed a non-competition agreement; and the transferee or its manager has satisfactorily completed the initial training program before assuming management of the School. |
| Termination for Cause | We have the right to terminate the Franchise Agreement without giving you an opportunity to cure if you: fail to establish and equip the School within the time required; make a material misrepresentation or omission in the application for the franchise; are convicted of or plead no contest to a felony or other crime or offense likely to affect the reputation of either party or the School; use the Manual or other Confidential Information in an unauthorized manner; abandon the School for five or more consecutive days; surrender or transfer of control of the School in an unauthorized manner; fail to maintain the School under the supervision of a manager after the death or incapacity of one of your owners; an audit shows that you have understated any amounts due by 2% or more; are adjudicated bankrupt, insolvent or make a general assignment for the benefit of creditors; misuse or make unauthorized use of the Marks; continue to violate any health, safety or other laws or conduct the School in a manner creating a health or safety hazard to students, employees or the public; engage in any activity reserved to us; fail to comply with laws or regulations after notice of non-compliance; repeatedly breach the Franchise Agreement or repeatedly fail to comply with requirements, specifications, standards or procedures; or default under any other agreement between you and us so that we have the right to terminate the other agreement. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | For two years after the termination or expiration of the Franchise Agreement, you and your Principals are prohibited from: (i) owning or working for a Competitive Business operating within 10 miles of the Approved Location or within 10 miles of any other School; and (ii) soliciting or influencing any of our (or any School’s) students, other customers, employees or business associates to compete with us or terminate their relationship with us |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We recommend, but do not require, that you personally participate in the operation of your Franchised School and oversee its daily operations. If you do not personally participate in the operation of your Franchised School, you must hire a manager for the operation of your School. Neither you nor the manager can have any interest or business relationship with any of our competitors. The manager is not required to have an ownership interest in you. We impose no limitations as to who you may hire as the manager, except that you must comply with all applicable laws and that you must not harm the goodwill associated with the System and the Proprietary Mark (this requirement may affect who you hire as your manager). All managers and employees you hire must pass our strict background checks (see Item 1). If you are not participating in the daily operation of your School, we will have the right to rely on your manager in making decisions and in communications with us. |
| Required Suppliers | You must purchase all fixtures, furnishings, signs, equipment, inventory, uniforms, advertising materials, and other supplies, products and materials required for the establishment and operation of your Franchised School solely from suppliers who demonstrate, to our continuing reasonable satisfaction, the ability to meet our reasonable standards and specifications for these items, who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved for these items in writing by us and not then disapproved. We will furnish you with a list of approved suppliers for necessary items through our Confidential Operations Manual (the “Manual”). |
| Supply Restrictions | Currently we are the sole approved supplier for logoed merchandise, guitars, accessories, forms and printed documents. We reserve the right to earn a profit on the sale of these items to our franchisees. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2021, we did not earn any revenue from the sale of these items to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or any other obligation. |
The Rock Underground Franchise Earnings — Item 19
The Rock Underground does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
The Rock Underground does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Rock Underground Litigation & Risk Flags
Clean Litigation RecordThe Rock Underground has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Rock Underground System Growth
Total Units
5
Franchised
3
Company-Owned
2
The Rock Underground currently operates 3 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 4 |
| 2020 | 1 | 1 | 4 |
| 2021 | 1 | 0 | 5 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$13K
Net Income
$-5,397
Total Assets
$9K
Audited by BARRY KNEPPER CERTIFIED PUBLIC ACCOUNTANT for year ending December 31st.
The Rock Underground Franchise — FAQ
The total investment to open a The Rock Underground franchise ranges from $82,500 to $197,600, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Rock Underground charges a royalty fee of 6% of Gross Sales of gross sales, plus a Up to 2% of Gross Sales (Currently 1% of Gross Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Rock Underground Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from The Rock Underground to ensure you have the most up-to-date version.
The Rock Underground does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
The Rock Underground has been franchising since 2013. The FDD shows an investment range of $82,500-$197,600, a 6% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $82,500 to $197,600 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from The Rock Underground and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Rock Underground or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com