About Music Go Round Franchise
Music Go Round is a retail franchise specializing in the buying, selling, and trading of used and new musical instruments, gear, and accessories.
The brand has been franchising since 1994, creating a marketplace where musicians of all levels can find affordable equipment including guitars, drums, keyboards, amplifiers, and recording gear.
Each store functions as both a retail outlet and a community hub for local musicians.
Music Go Round Franchise Cost & Fees
Minimum Investment
$296K
Average Investment
$337K
Maximum Investment
$378K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 4% of your “Gross Sales” of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | up to 2% of your Gross Sales | National brand fund |
| Total Investment Range | $295,500 – $378,300 | Includes build-out, inventory, working capital |
The investment range of $296K–$378K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of your “Gross Sales”) and marketing fee (up to 2% of your Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| INITIAL FRANCHISE FEE | $25,000 | $25,000 |
| FIXTURES AND SUPPLIES | $20,000 | $27,000 |
| SIGNS | $8,000 | $14,000 |
| SECURITY SYSTEM AND/OR CAMERAS | $1,000 | $4,000 |
| POINT-OF-SALE (POS) SYSTEM | $20,000 | $23,300 |
| LEASEHOLD IMPROVEMENTS | $9,000 | $11,000 |
| BUILD-OUT | $25,000 | $40,000 |
| DEPOSITS AND BUSINESS LICENSES | $5,000 | $9,000 |
| OPENING INVENTORY | $110,000 | $120,000 |
| MISCELLANEOUS PRE-OPENING EXPENSES | $30,000 | $50,000 |
| RENT – FIRST 3 MONTHS | $12,500 | $20,000 |
| ADDITIONAL FUNDS - 3 MONTHS | $30,000 | $35,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Currently $0 (estimated $500 to $2,500 per year if established) |
| Audit Fee | Cost and expenses related to audit (payable only if understatement is greater than 2%) |
| Marketing Fee | $1,500 per year |
| Cooperative Advertising | Maximum amount is 5% of your Gross Sales |
| Local Marketing Expenses | Minimum amount, when combined with cooperative advertising expenses, is 5% of your Gross Sales |
| DRS Maintenance Fee | $1,000 for the term of this Franchise Agreement |
| Remodeling Expenses | Will vary under circumstances |
| Insurance | Will vary under certain circumstances |
| Inventory | Will vary under certain circumstances |
| Interest Expenses | Lesser of 18% per year or maximum rate permitted by law |
| Lease Payment | Will vary under certain circumstances |
| Costs and Attorneys’ Fees | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3-part training program, typically 11 times per year. First session (New Franchisee Orientation Training) is 5 days. Second session (Concept Training) is 5 days. Third session (in-store training) is at least 2 days. |
| Classroom Training | 45.5 hours |
| On-the-Job Training | 17.5 hours |
| Training Location | Minneapolis, MN and/or Online, and at an existing Music Go Round® store of Winmark’s choosing for in-store training. |
| Additional Training | Winmark provides remedial training programs when considered beneficial to a significant number of franchisees, currently recommended but not required, and currently without a fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Typically a 3 to 5 mile radius around your Store. Urban areas generally have a minimum population of 75,000 to 100,000 persons. Other areas generally have a minimum population of 50,000 persons. |
| Description | You will receive an “Exclusive Territory” surrounding your Store location. Winmark will not establish another franchised or company-owned Music Go Round® Store at a physical location within your Exclusive Territory. Winmark reserves the right to distribute products through alternative channels (including the Internet) using the Trademarks inside or outside the Exclusive Territory, provided these activities benefit Music Go Round® franchisees generally. Winmark also reserves the right to distribute products or establish franchised/company-owned businesses selling similar products/services under a different trademark inside or outside the Exclusive Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | additional 10 year period(s) |
| Renewal Fee | $10,000 |
| Renewal Conditions | Franchisee must provide 180 days written notice of intent to renew, comply with all material provisions of the agreement (including monetary obligations and operating/quality standards), make reasonable capital expenditures for remodeling/modernization to meet current brand standards, pay a $10,000 Renewal Fee, execute the then-current Franchise Agreement (which may have different royalty rates, advertising contributions, and an altered Exclusive Territory), and secure a lease renewal or new approved location within the Development Area. |
| Transfer Fee | $10,000 (no fee for transfers to immediate family members) |
| Transfer Conditions | All accrued monetary obligations to Franchisor and suppliers must be satisfied, and Franchisee must not be in default. Franchisee must execute a written agreement to observe post-term obligations. The transferee-franchisee must assume existing obligations or execute a new standard franchise agreement (which may have different terms). The transferee-franchisee must not be a competitor, must be approved by Franchisor, meet managerial/financial standards, have a good business reputation/credit rating, and possess the aptitude/ability to conduct the business. If the transfer is financed by the franchisee, the new franchisee's obligations must be subordinate to fees owed to Winmark. The transferee must successfully complete Franchisor’s training program. |
| Termination for Cause | Franchisor may terminate if Franchisee fails to open within 9 months, violates any material provision, is convicted of a felony or a law adversely impacting reputation, fails to conform to Business System standards, fails to timely pay fees, is insolvent, makes an assignment for creditors, abandons the business, materially impairs goodwill, lease expires/terminates without relocation, defaults on other agreements with Winmark/affiliates, receives frequent/severe customer/employee complaints, fails to cooperate with audits, or violates the in-term non-compete covenant. |
| Non-Compete Period | During the term of the franchise and for two (2) years after termination or expiration. |
| Non-Compete Details | During the term, Franchisee (and all Personal Guarantors/owners) may not directly or indirectly own, operate, lease, franchise, conduct, engage in, or assist any competitive business involving the selling, leasing, renting, or exchanging of new or used musical instruments, stereo equipment, speakers, amplifiers, music-related electronics, or related accessories, or any business promoting musical concerts/shows. After termination, the same restrictions apply for two years within a ten (10) mile radius of the Franchised Location or any other Music Go Round® Store. The non-competition period will be extended for a period equal to the time of any breach. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you are an individual, you must personally manage the Store unless Winmark provides prior written consent to delegate management. If the franchisee is a corporate entity or partnership, one individual must retain at least 50% of the equity and voting interest and be obligated to personally manage and operate the Store. While not prohibited from other employment, the primary job responsibility must be the operation of the Store. All principal owners (10% or greater interest) and their spouses must sign a Personal Guaranty. |
| Required Suppliers | You must license the Proprietary Software and purchase the computer hardware components for the POS System from us. You must purchase your exterior and interior signs, carpet and flooring from an approved supplier designated by Winmark. You must use an approved supplier designated by Winmark for broadcast media placement and online advertising for your pre-opening and first year marketing activities. |
| Supply Restrictions | You may purchase products within an approved category from any legal and available source of supply. Winmark does not establish standards for specific musical instruments, speakers, amplifiers, music-related electronics and related accessories and other items sold in your Store. |
| Franchisor Revenue from Suppliers | During Winmark’s last fiscal year, Winmark derived revenues of $3,437,658 from the sale of products, equipment and other items subject to Winmark’s standards (including $2,776,987 from computer hardware components, software, and licensing of Proprietary Software to franchisees of all brands, and $660,671 from inventory sold to Play It Again Sports® franchisees). This represents 4% of Winmark’s total revenues of $78,216,200. Revenues from Music Go Round® franchisees for computer hardware components, software, and licensing of Proprietary Software were $40,235. Winmark may receive a rebate for 30% of the billed revenue for Constant Contact marketing program, estimated at $5,700 per year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Winmark does not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Music Go Round Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$1.1M
Revenue Range
$285K – $2.9M
Sample Size
36 units
Past financial performance does not guarantee future results. Individual results will vary.
Music Go Round Litigation & Risk Flags
Clean Litigation RecordMusic Go Round 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.
Music Go Round System Growth
Total Units
37
Franchised
37
Company-Owned
0
Music Go Round currently operates 37 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 |
|---|---|---|---|
| 2019 | 4 | 1 | 37 |
| 2020 | 0 | 0 | 37 |
| 2021 | 0 | 0 | 37 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$78.2M
Net Income
$39.9M
Total Assets
$26.9M
Audited by Grant Thornton LLP for year ending December 25, 2021.
Music Go Round Franchise — FAQ
The total investment to open a Music Go Round franchise ranges from $295,500 to $378,300, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Music Go Round charges a royalty fee of 4% of your “Gross Sales” of gross sales, plus a up to 2% of your Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Music Go Round 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 Music Go Round to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Music Go Round franchise owners report average revenue of $1.1M and median revenue of $1.1M. This is based on a sample of 36 units. Past performance does not guarantee future results.
Music Go Round has been franchising since 1994. The FDD shows an investment range of $295,500-$378,300, a 4% of your “Gross Sales” royalty, and includes an 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 $25,000 and the total investment ranges from $295,500 to $378,300 depending on location size and market. A minimum of $45,000 in liquid capital is required. 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 Music Go Round and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Music Go Round or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com