About Disc Replay Franchise
Disc Replay is a retail franchise with two store formats: Disc Replay Outlets, which specialize in buying, selling, and trading used movies, video games, music, electronics, and related items with electronics repair services, and Super Mega Replay Outlets, which expand the concept to include used small appliances, home decor, sporting goods, tools, and other household items.
The standard franchise fee is $12,500, and the company has been franchising since 2007.
The resale and trade in model creates a sustainable, circular retail experience that appeals to value conscious consumers and collectors seeking pre owned entertainment, electronics, and household goods.
Disc Replay Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $12,500 (standard), $1,000 (for affiliate-owned store) | One-time payment upon signing |
| Royalty Fee | 2.5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Local: $1,500/month; Regional Co-op: up to $1,500/month (if formed); National: 1% of Gross Sales (if implemented) | National brand fund |
| Total Investment Range | $297,000 – $793,000 | Includes build-out, inventory, working capital |
The investment range of $297K–$793K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2.5% of Gross Sales) and marketing fee (Local: $1,500/month; Regional Co-op: up to $1,500/month (if formed); National: 1% of Gross Sales (if implemented)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $12,500 | $12,500 |
| Travel and Living Expenses | $2,500 | $7,500 |
| Rent or Real Estate and Improvements | $20,000 | $130,000 |
| Furniture & Fixtures | $40,000 | $90,000 |
| Signage | $10,000 | $20,000 |
| Equipment | $22,000 | $45,000 |
| Miscellaneous Opening Costs | $5,000 | $8,000 |
| Opening Inventory | $120,000 | $320,000 |
| Advertising (3 months) | $25,000 | $60,000 |
| Computer Equipment | $10,000 | $20,000 |
| Additional Funds for Initial 3 Months | $30,000 | $80,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $0 - $9,500 |
| Renewal Fee | $1,000 |
| Technology Fee | Currently $3,600 per year; prorated at $300 per month in the first year |
| Audit Fee | Cost of audit plus 1% interest per month on understatement (if understatement >= 2% or failure to submit reports) |
| Regional Co-operative Advertising | Determined by cooperative; not to exceed $1,500 per month |
| Initial Training for Additional Persons | $200 per person per day |
| Additional Assistance at Your Location | $500 per day (2 day minimum) plus travel and living expenses |
| Technology Upgrade Fee | Up to $5,000 (Once every 4 years) |
| Interest | 1% per month (on late payments) |
| Insurance Policies | Will vary by location (Monthly) |
| Conference Fee | Varies (30 days after billing) |
| Marketing Materials | Our duplication costs, plus shipping and handling |
| Attorneys' Fees and Costs | Varies (As incurred, if franchisor prevails) |
| Fee for Non-Compliance with Franchise Agreement | $10 per day (Upon demand) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Usually 5 days, averaging up to 8 hours per day. |
| Classroom Training | Minimum of 38 Hours |
| On-the-Job Training | 22 Hours |
| Training Location | 5888 E. 82nd Street, Indianapolis, Indiana 46250, or 11508 Middlebelt Road, Livonia, Michigan 48150. For Super Mega Replay franchisees, training may be held at 683 N. Green River Road, Evansville, Indiana. |
| Additional Training | Franchisor may hold periodic regional or national conferences that franchisees are required to attend. Additional on-site assistance beyond initial training may incur a fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Minimum radius of 4 miles for urban territories (population > 100,000) or 10 miles for rural territories (population < 100,000). |
| Description | Franchisee receives an exclusive Protected Territory, defined by boundary streets, highways, counties, or zip codes, with the franchisor determining if it's urban or rural. The franchisor will not operate or grant franchises for a similar or competitive business within this territory. However, the franchisor reserves the right to use alternative distribution channels (e.g., Internet, mail order) within or outside the territory. Territory boundaries are not adjusted based on population changes. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 15 years |
| Renewal Fee | $1,000 |
| Renewal Conditions | Franchisee may renew for successive 15-year terms if in good standing, current on payments, and pays the renewal fee. Renewal requires signing a new franchise agreement, which may have materially different terms and conditions, though the royalty rate will not exceed that imposed on similarly-situated renewing franchisees. Capital expenditures for renovation/modernization may be required. |
| Transfer Fee | $0 - $9,500 |
| Transfer Conditions | Franchisor's prior written approval is required and will not be unreasonably withheld if specific conditions are met: no existing defaults, all outstanding accounts settled, general release signed, transfer fee paid, proposed transferee meets franchisor's standards (experience, financial stability, full-time commitment), completes training (unless exempt), signs a personal guarantee, purchase agreement is approved, and the outlet is remodeled to current standards. Transfers to competitors are prohibited. |
| Termination for Cause | Franchisor may terminate with 30 days' notice for curable defaults (e.g., failure to operate in compliance with system standards, non-payment of fees, non-compliance with laws). Immediate termination without notice for non-curable defaults (e.g., misrepresentation, failure to complete initial training, bankruptcy, loss of premises, contesting trademark validity, unauthorized transfer, abandonment, felony conviction). |
| Non-Compete Period | During the term of the franchise and for 2 years after termination, transfer, or expiration. |
| Non-Compete Details | During the term and for two years post-termination/transfer/expiration, franchisee and associated persons may not participate in any business that buys and sells used electronics, entertainment media, small appliances, home décor, kitchen items, sporting goods, tools, pet supplies, and other miscellaneous household items, or performs electronics repairs. This covenant applies within any state where the franchisor, its affiliates, or franchisees operate (during the term), and for two years post-termination, within a 50-mile radius from the boundary of the Protected Territory or any other Disc Replay/Super Mega Replay outlet, and on the Internet/Multi-Area Marketing channels. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is not required to personally participate in the operation of the Outlet. However, the Outlet must be under the direct supervision of a manager who has satisfactorily completed initial training and devotes full-time effort to the management and operation of the Outlet. The manager cannot have any interest or business relationship with competitors and must sign a confidentiality and non-compete agreement. Franchisee and spouse (or equity owners and their spouses) must sign a personal guarantee. |
| Required Suppliers | Franchisee must purchase proprietary software from a designated third-party vendor and displays and counters from approved or designated suppliers. Franchisor reserves the right to require purchase of additional items from itself or designated sources in the future. |
| Supply Restrictions | Franchisee must strictly follow product and service specifications in the Operations Manual and other written materials. All products and supplies must conform to franchisor's standards and specifications. Franchisee is prohibited from offering or selling any services or products not authorized by the franchisor in writing. |
| Franchisor Revenue from Suppliers | Currently none, but franchisor reserves the right to receive revenue or other material consideration from third-party suppliers in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing, nor does it guarantee franchisee's notes, leases, or obligations. |
Disc Replay Franchise Earnings — Item 19
Disc Replay 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.
Disc Replay Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Disc Replay System Growth
Disc Replay currently operates 30 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 1 | 2 | 30 |
| 2021 | 1 | 1 | 30 |
| 2022 | 0 | 0 | 30 |
Transfers: 2 | Closures: 3
State Registrations
Registered in 3 states: IL, IN, MI
Disc Replay Franchise — FAQ
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