School of Rock Makes Forbes’s "Best Franchises to Buy” List

Each year, Forbes magazine researches thousands of franchises across segments to update their list of the 60 best and worst franchises to buy. This year saw the introduction of a new brand to the list, School of Rock*, which made an impressive debut as the number-two ranked franchise in the Medium Investment category.

According to Anthony Padulo, Chief Development Officer at School of Rock, the brand’s inclusion on the list came as a pleasant surprise to the corporate office.

“This wasn’t really something that was on our radar,” Padulo admits. “It just so happens that many of the things Forbes looks for are the very same things we’ve been focused on for the sake of the business and our owners.”

Forbes’s method for ranking franchises is based on five key metrics: system sustainability, system demand, value for investment, franchisor support and franchisor stability. To build a comprehensive picture of each of those metrics, Forbes works with franchise industry research firm FRANdata to look at four years of data for each brand, including year-on-year sales growth, store closures and openings, surveys of franchisee satisfaction and a close reading of each brand’s franchise disclosure document.

All of that data is rated independently and then combined into an overall rating for each brand. Brands are then separated into three categories: High Investment (more than $500,00), Medium Investment ($150,00–$500,000) and Low Investment (less than $150,000).

School of Rock’s number-two ranking in the Medium Investment category is more than just positive acknowledgment of the brand’s success, Padulo says; it also provides actionable benefits for the franchise and its many owners.

“This is a really strong new form of validation for us,” Padulo said. “Forbes is a universally respected authority in the industry, and, as new owner candidates vet our brand, that validation is going to go a long way. But, more importantly, the ranking also increases the value of each and every School of Rock business across the country. Lenders, realtors, vendors and suppliers all see these lists, too, so our owners have added leverage when seeking a loan or a new location for a school.”

Still, Padulo says the School of Rock corporate team has no plans to refocus their efforts to ensure the brand’s inclusion on the list in the future. Instead, they are taking this year’s ranking as further evidence that they’re already on the right track.

“Our hope is that we’ll continue to be recognized on the list each year moving forward,” Padulo said, “but we see this as validation that we’ve been doing all the right things already. This doesn’t inspire us to change strategy.”

That strategy is defined largely by a focus on the franchisee, Padulo says. By focusing on the success of its owners, School of Rock ensures the strength of its system at large.

“We’ve always been a very franchisee-centric business,” he said. “The idea is to make the business as profitable and easy to run for our owners as possible, which in turn will promote growth system-wide.”

School of Rock’s inclusion on Forbes’s “Best Franchisees to Buy” list is a strong indicator that that strategy is working, and Padulo says that validation couldn’t come from a more credible source.

“I’ve been in this business for 38 years, and Forbes has long been a prestigious and trustworthy voice in our industry,” he said. “To be not only included in this list but also ranked at number two, that’s a fantastic acknowledgment of all the work we’ve put in to make School of Rock one of the best franchise opportunities available — the best for anyone passionate about music and education.”