School of Rock franchise complaints include lack of support, high management turnover, dictatorial management led by CEO Dzana Homan, poor communication and franchise relations.
(UnhappyFranchisee.Com) According to complaints we’ve received, some School of Rock franchise owners are singing the blues.
On June 26, 2009, Sterling SOR, LLC, a subsidiary of Sterling Partners, a private equity firm that owns an interest in approximately 28 other companies, acquired a controlling interest in School of Rock, LLC and its affiliates.
According to the 2017 School of Rock Franchise Disclosure Document (FDD), School of Rock franchise businesses are performance-based music schools with a rock music program.
At the end of 2016, there were a total of 168 School of Rock locations, comprised of 152 franchise and 16 company-owned locations.
The total investment necessary to begin operation of a School of Rock business is stated to be $136,850 to $339,100. This includes $49,500 to 54,000 that must be paid to the franchisor.
According to the Item 19 Financial Performance Representation in the FDD, the Average Gross Sales for selected company-owned units is $513,260 (4 Company-owned Schools, or 26.7%, were at or above this figure) and Median Gross Sales are $412,952 (7 Company-owned Schools, or 46.7%, were at or above this figure).
For more information, consult the 2017 School of Rock Franchise Disclosure Document (FDD).
Dzana Homan joined School of Rock as Chief Executive Officer in 2014. Ms. Homan had previous educational franchise experience with FutureKids, Goddard Early Learning and Huntington Learning Centers.
In an interview published on Forbes.Com, Homan stated that she believed in granting franchisees a degree of independence.
She stated “I also have enthusiasm for franchising because it allows an individual to run their own business, but in a safer way… you can still run your own business and be independent from having a boss like me [laughs]. There is this freedom of determining who you as an individual…”
CEO Homan stated that she believed communication with and respect for franchisees is critical: “One thing that I’ve learned is to engage with your franchisees, and be in communication and conversation all the time… I came to franchising as a franchisee. I know both sides of the coin. I never forgot how it felt to be a franchisee.”
Ironically, communication and respect for franchisees as business owners are areas where Ms. Homan is drawing fire from some franchisees.
We’re received complaints that Dzana Homan eliminated the School of Rock Franchise Advisory Committee (FAC) shortly after taking the helm.
She also refuses to recognize the Independent Franchisee Association (IFA), and confronts those who dare to complain about franchisee treatment – even when those complaints were voiced in private group conversations.
Are you familiar with Dzana Homan and the School of Rock franchise program? Please share your opinions and thoughts with a comment below, or email us in confidence at UnhappyFranchisee[at]gmail.Com.
We’ve received complaints about the stability of the School of Rock management team since the appointment of a new CEO in 2014. According to the 2017 FDD, “Dzana Homan Chief Executive Officer Ms. Homan became our Chief Executive Officer on June 9, 2014 and is located in El Segundo, California. From December 2010 to March 2014, Ms. Homan served as the Chief Operating Officer of Goddard Systems, Inc. in King of Prussia, Pennsylvania.”
An anonymous franchise owner wrote to us:
Over the course of the last 3 years, almost the entire corporate team has changed after the new CEO [Dzana Homan ] was hired, and several new hires left after a short tenure. These new hires include a COO and several Franchise Business Consultants, which are supposed to provide support at the school level.
We’ve received complaints that the School of Rock franchisor has adopted a condescending, bullying approach to its relationship with its franchisees.
CEO Dzana Homan allegedly dismantled the School of Rock Franchise Advisory Committee (FAC) and refuses to recognize the Independent Franchisee Association (IFA) formed after she took the helm.
Franchisees who have complained of unfair treatment on Facebook are reportedly “called to the Principal’s office” and admonished by Ms. Homan.
An anonymous franchise owner wrote to us:
…the focus of this management team appears to be on compliance and not in growing the business, with frequent notices of default being sent out for such things as not submitting P&L statements in a timely manner.
…the franchise advisory committee (FAC) was essentially dismantled when the new CEO took over and the Independent Franchisee Association (IFA) formed in 2015 has not been recognized by the franchisor… owners have been contacted by the CEO for speaking out on unfair practices on closed Facebook group forums as well as statements they have made to prospective franchisees, a practice we have coined as ‘being called to the principal’s office’.
Another franchisee wrote:
it’s very disappointing to have such a hostile relationship with the franchisor, especially, the CEO. She goes after franchisees who speak up instead of genuinely seeking to fix problems. We used to work together with corp to fix this stuff but now there is zero concern at the top about franchisees ability to make money.
A School of Rock commenter wrote:
The relationship with the executive management team is not a nurturing one, and is often confrontational, with considerable effort put on compliance and very little on finding ways to make the franchise owners money.
School of Rock Franchise Complaints: Lack of Transparency, Lack of Support
Other complaints received include an understatement of disclosed costs, insufficient franchisee support, and allegations of a competitive, adversarial attitude from the franchisor.
One franchisee complained:
This is a music education business with no product VP – no one in charge of music education, curriculum development or training.
The result, claims franchisee(s), is a reluctance to renew on the part of franchisees:
the franchise disclosure document leaves out a significant cost and management component related to securing copyrighted music for the music that is taught in the schools… the franchisor is pushing other licensing costs onto the franchisees, as well as risk related to securing copyrighted music.
new schools open up with very little support from the corporate team.
There is a competitive nature of corporate not sharing best practices or knowledge gained from corporate owned schools with franchisees, which was one of the reasons for the organization of the IFA.
Renewals have begun in 2015 and 2 schools have closed rather than choosing to renew and 3 have renewed. Several franchisees are looking to sell.
We will reach out as best we can to CEO Dzana Homan, School of Rock executives, franchise owners, and staff for comments, corrections, clarifications, affirmations and/or rebuttals. Please comment below or email us in confirdence at UnhappyFranchisee[at]Gmail.Com.
ALSO READ:
FRANCHISE DISCUSSIONS by Company
2017 School of Rock Franchise Disclosure Document (FDD) (PDF FILE)
ARE YOU FAMILIAR WITH THE SCHOOL OF ROCK FRANCHISE OPPORTUNITY, STERLING PARTNERS AND/OR SCHOOL OF ROCK CEO DZANA HOMAN? SHARE A COMMENT BELOW.
TAGS: School of Rock, School of Rock franchise, School of Rock franchise opportunity, School of Rock franchise complaints, Sterling Partners, Dzana Homan, CEO Dzana Homan, School of Rock franchise disclosure document, School of Rock FDD, education franchise, education franchise opportunity, education franchise complaints, Paul Green School of Rock Music, unhappy franchisee
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My experience as a franchisee matches up with the above. It's hard to make serious money at this business when the royalties and brand fund contribution are so high but the franchise is not well-known, so it becomes a labor of love instead of a way to support yourself. There is zero support from the corporate group and they are thinly staffed (due to such high turnover) and no one up there has any real understanding of how to run a school from an owner standpoint. Also, it's very disappointing to have such a hostile relationship with the franchisor, especially, the CEO. She goes after franchisees who speak up instead of genuinely seeking to fix problems. We used to work together with corp to fix this stuff but now there is zero concern at the top about franchisees ability to make money. This is a music education business with no product VP - no one in charge of music education, curriculum development or training.
Article pretty much holds to our experience as well. The business is super rewarding, but rewarding seldom pays the bills. The relationship with the executive management team is not a nurturing one, and is often confrontational, with considerable effort put on compliance and very little on finding ways to make the franchise owners money. People are really left to their own devices, which is maybe ok if you are an experienced owner, but it is not really fair to new owners who buy in expecting a formal franchise relationship with best practices around managing a music education business, when there are none.
I unfortunately have to agree with everything above. There were a lot of promises of support but very little delivery. Owners are either bullied or ignored, there never seems to be a middle ground. The initial start up was 3x what we were quoted and instead of meaningful support I was repeatedly told I needed to purchase expensive unnecessary equipment. We pay high royalties fees and brand funding fees with almost no national marketing campaign. What we do get I spend hours reworking.
The owners, students, and staff deserve a better leader in corporate.
Dzana is fond of telling and retelling her escape story from war-torn former Yugoslavia in particular Bosnia.
It's a great story.
That story helped her get hired at all the companies she's left.
Wondering if any of the former franchisors miss her?
I am glad this public forum got set up. In addition to the comments above in the post, which I totally agree with, it should be pointed out that many of the franchisees will be totally afraid to post here for fear of retaliation from expressing their opinion, which really isn't right. Many owners have invested significant amounts of money in this business, some their entire retirement bankrolls, and to have to deal from a position of fear of retaliation from the CEO simply isn't right. There are many smart owners with skill sets that exceed those on the corporate side and to have to work in this environment is really counterproductive.
As a Franchise Owner of School of Rock, the product we were sold is not what we purchased. The corporate team does a great job of selling franchises with little to no support once opened. The CEO Dzana Homan is doing a wonderful job at destroying the company that used to thrive because of the culture and passion for music education. Now, there is ZERO music department, no curriculum, no on going training, and no corporate staff in charge of improving the product we sell to our clients. The one and only thing to corp team is concerned with is their how much money are they making. The franchisees are left to fend for themselves.
The total investment to be expected is seriously understated. In order to have a successful school we had to invest 3-4X what we were quoted. Instead of meaningful support, I was repeatedly told I needed to spend money on unnecessary items and was given inadequate advice on everything from our grand opening all the way to how to price our programs. I am on our third billing and scheduling software platform and it is highly inadequate for what the owners need. There are no standard operating procedures, no training manuals, no training department, no curriculum, and no support in regards to operating our business effectively or developing leads. We pay very high royalties fees and brand funding fees with little to no national marketing campaign. SoR tries to rely heavily on the School of Rock musical and the Nickelodeon TV show to be recognized nationally, but we are not a musical and we are not a TV show. We are a music education program that needs a strong and legitimate curriculum with a strong training/educational team supporting it.
It was not disclosed prior to or upon signing our FA that we were required to have performing rights licenses in order to operate our schools. When asked to address the situation and give guidance, Corp has consistently ignored us and continues to delay giving the system a legal and consistent answer. This is one more thing that the franchisees are being required to pay for and did not plan for.
There has been a massive amount of turnover in the Corporate structure since the arrival of Ms. Homan. In three years, we have lost a significant amount of knowledge due to the departure of long term employees, some of whom were original to the Paul Green School of Rock Music. We have lost VPs of Marketing, COOs, CFOs, and the entire training department, which is now being run by the former IT manager/director. Corp school employees have been moved into positions for which they are not necessarily qualified and there is a revolving door for the Franchise Business Consultants (formerly known as Director of Franchise Operations), leaving the majority of the owners without any type of support for months. I have had as many FBCs as the number of years that I have been open and no regular support from any of them. The owners continue to ask for meaningful and effective marketing campaigns delivered within enough time to make an impact in their markets but campaigns are typically rolled out late in the game. We have asked for editable marketing materials to use in local markets only to be met with demands for phone calls to be "called down" by the "principal" and berated.
This is not the business that I bought into and has seriously declined within the past 3 years. Ms. Homan has effectively alienated the owners and made them afraid to speak up lest they be the recipient of retaliatory actions. She has behaved aggressively towards staff and owners and refused to recognize or interact with the independent franchisee organization after essentially disbanding the FAC. We are treated like children, when in fact, the majority of owners within the system have a great deal of experience in the professional realm and that knowledge/experience is wasted and ignored.
The relationship with the executive management team is not pleasant one, and is often confrontational. There is little to no trust in the CEO or the staff due to the constant fear of retaliation. This business used to thrive because of the passion for music education and the culture that was created across all of the schools. This culture has been destroyed and schools are left to their own devices to figure out how to pick up the pieces. Fortunately, the majority of owners still have passion and that is what keeps it going....but it doesn't pay the bills.
Thanks for these comments. Keep them coming.
Question: Has anyone attempted to communicate these complaints to management at Sterling Partners?
It only takes one wrong hire to ruin something great. I'm sharing some first hand experiences with Dzana Homan as she destroyed an otherwise beautiful company. She has done damage to the integrity of the brand and it's so unfair to the many beautiful people who dedicated their hard earned money and their time to trying to foster the music in the communities they serve.
I'll begin with some direct quotes:
"This is why you don't hire women with kids, children are a weakness."-Ms. Homan when she found out an employee was pregnant and had limited travel ability.
"Get that fat Asian bitch out of my school" - Ms. Homan when she found out that an employee had given her two weeks notice.
"Why didn't you tell me she was gay, I could have flirted with her to get what I want" - Ms. Homan mocking homosexual member of School of rock community.
"She's not pretty enough for LA" - Ms. Homan regarding coworker
"Zack Wylde, the lead guitar player in Black Sabbath" - Ms Homan on national television embarrassing the brand.
"I will make his life miserable with meaningless work until he quits"- Ms Homan on her tactic to not fire someone as to not pay severance.
Has call with Franchise Advisory Committee and tells them they are to dismantle. Recommends that they stand up at the conference in front of the company and announce they are dismantled. Hangs up the call, waits for one franchisee who attended in person to leave and then plays Another One Bites the Dust on her computer in corporate office and laughs in celebration at the thought of them humiliating themselves in front of the company.
Drinks vodka and orange juice in office and becomes inebriated. Begins screaming at employee for being insubordinate.
Becomes angered in meeting and says "I wish I had a little animal that I could squeeze" as she crushes paper mimicking killing said animal.
Misses call after call after call while team members were working diligently to solve copyright issues and curriculum issues with Hal Leonard publishing. Ceases all progress with no alternative plan.
Tells Schools she is coming to visit the school and will attend the school's event . Flies first class, stays in 5 star hotel, never shows up at school or event.
Threatens franchisee of one of the largest schools with kicking her out of the system because the franchisee disagrees with her strategy.
Announces company strategy at first conference as "increase top line revenue and increase bottom line revenue." Except that isn't a strategy that is the outcome of a strategy.
Releases "Black Friday" marketing collateral with African American student as the model. Makes zero sense. Don't understand that connection.
National Press is almost only about her and her escape from her home country. With her the kids come last.
Overweights and overvalues the effect that "School of Rock Musical" and Nickelodeon television show will have on brand. Effects are basically zero positive and actually trivialize the real School of Rock experience.
All of this happened in front of my eyes. Don't let this reflect on the owners. They are the victims. Do the right thing.
In answer to the Admin question if we have attempted to communicate this to Sterling, the answer is "yes." I believe Ms. Homan tells them we are a "handful" of disgruntled owners who do not know what we are doing and that her team provides direction that we do not follow. [untrue]
With regards to all the other comments posted here, I have experienced the same.
Here's one more point as to corporate's incompetence: we are having a corporate conference call today to discuss Summer Camps. We start camps in June. (That's 6 days from now.) Everything for camps needed to be completed MINIMUM of 60 days ago.
I love my students, my parent community, my teachers and my staff. I feel ripped off that I have to pay Corp 11% off the top PLUS $8 for every email address I have PLUS a fee for the software they require us to use (which, by the way is not specifically designed for music schools but is partially owned by the CEO we had prior to Ms. Homan) .
Speaking of royalties, Corporate hosts a music festival for our students to participate in. We pay Corporate a fee established by Corporate in order to participate. Then when we collect the fees from the student, Corporate takes their royalty on top of that. Double Dipping?