In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Music Go Round franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Music Go Round franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Music Go Round’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average, high, and low gross sales and average gross profit for franchised Music Go Round Stores that opened in 2013, 2012, 2011, 2010, 2005, and 2004 and prior, respectively, and had been in operation for the 12-month period ended December 27, 2014
- 2014 average gross sales for the first, second, third, and fourth quartiles of franchised Music Go Round Stores that had been in operation for the 12-month period ended December 27, 2014
Section I – Background Information
Back in the 1980s, Bill Shell could see that the Minneapolis area lacked good sources of quality used musical instruments, gear, and equipment. Most people were relying on pawnshops, which just didn’t feel right to him. In 1986, he opened Hi Tech Consignments to fill this niche segment.
Seven years later, Winmark (previously Grow Biz) acquired the store, changed its name to Music Go Round, and started franchising in 1994. The current number of locations is 33, which represents a slight decline in recent years.
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.Winmark also operates other consignment and used goods franchises such as Once Upon A Child, Plato’s Closet, Style Encore, and Play It Again Sports. Here’s how Music Go Round keeps the tunes playing in the used music equipment segment:
An Easy Process
The key to success in this segment is making it easy for people to sell their used equipment. The company describes its three-step process as follows: 1) Bring in your musical instruments and accessories (no appointment needed) including guitars, amps, drums, cymbals, keyboards, MIDI equipment, speakers, mixers, pro sound equipment, band instruments, and related accessories like stands, cases, and racks; 2) Staff will review and research each item and define a fair market value for the products; 3) Staff will make you an offer based on the fair market value. If you like the offer, you’ll be paid on the spot.
Used But in Great Shape
Offering great instruments and equipment at up to 70% off retail prices for new equipment works really well for people, but only if the used items are in good shape. That’s why Music Go Round is committed to reviewing and repairing everything they take in so that when it goes out on the floor, everyone knows it’s in great working condition.
Backed by Winmark
Music Go Round is owned by Winmark, a company that got its start through the successful Play It Again Sports franchise back in the 1980s and leverages the idea of “ultra-high-value” retailing through quality used products that are often sold alongside new products as well.
Martha Morris got the idea for Play It Again Sports after she had a devil of a time reselling a nearly new backpack for which she had originally paid $200. She got started with a $15,000 loan and sold around $120,000 worth of goods in her first year. The rest, as they say, is history.
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.After the turn of the millennium, Winmark made important changes to close concepts that weren’t working and focus on those that were. The result in those early years of the 21st century was 30% annual growth in return on equity for the company.
Section II – Estimated Costs
- Please click here for detailed estimates of Music Go Round franchise costs, based on Item 7 of the company’s 2015 FDD (updated).
Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis
To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.
Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.
💼Corporate Executives: Your Management Experience Is Your Greatest Franchise Asset
Whether navigating a career transition or planning your next chapter, franchise ownership gives you a proven system to put decades of management experience to work for yourself. Severance packages, 401k rollovers, and SBA loans make funding more accessible than most executives realize. Enter your ZIP code to explore franchise opportunities still available in your area and find out which brands are actively seeking experienced business leaders like you.The Best of Franchise Chatter
🥇The Most Profitable Franchises of 2026
🥈Franchises Ranked by Average Revenues
🥉Franchises Ranked by Average Profits
🏆Franchise Winners, Survivors & Losers
Subscribe Now or Log In
🎖️Military Veterans: Your Service Prepared You for Franchise Ownership Better Than You Think
Franchisors actively seek out veterans because the discipline, leadership, and ability to follow a proven system that the military instills are exactly the qualities that make franchise owners successful. Through the VetFran program, many leading brands offer significant incentives including reduced franchise fees and special financing. Enter your ZIP code to explore franchise opportunities still available in your area and find out which brands are actively looking for veterans like you.
Franchise Chatter is reader-supported. We may receive a commission for leads generated from affiliate links and banners on our site.
Leave a Reply