In this FDD Talk 2017 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 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Music Go Round franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Music Go Round’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, high, and low gross sales and average gross profit of the 32 franchised Music Go Round Stores in the United States that had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2016, grouped by year opened (2015, 2014, 2012, 2011, 2010, and 2005 and prior)
- 2016 average gross sales for the first, second, third, and fourth quartiles of the 32 franchised Music Go Round Stores in the United States that had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2016
Section I – Background Information
10 Things You Need to Know About the Music Go Round Franchise
One of the Top 100 Musical Instrument Retailers in the World
1. In the summer of 2016, Music Go Round was recognized by the National Association of Music Merchants (NAMM) as one of the Top 100 Musical Instrument and Product Retailers in the world. The award was presented in late June at an awards gala during the annual Summer NAMM trade show in Nashville, Tennessee.
2. Music Go Round and the other retailers in the Top 100 were evaluated on the following criteria:
- Exemplary retail experience and customer service
- Community advocacy and support for music education
- Merchandising and marketing tactics
- Engaging and effective use of web and social media and its sound planning for future success
New Location Opened in Home State of Minnesota
3. Unlike Winmark’s other franchises, Music Go Round’s growth has been slow. New locations do not open very often, but the franchise continues to expand in its home state of Minnesota. A new location opened in Minnetonka in early September 2016.
4. The franchise owner Corwin Holk opened the Music Go Round location to provide his community with a place to buy high quality music products at a better price than brand new items.
Selling to Customers Online and in Stores
5. Music Go Round differs from Winmark’s other resale franchises by selling its products both in store and online. Typically, the items that Winmark’s stores carry vary by location, but each Music Go Round lists big tickets items that have recently come into their store on the company’s website. Customers have the option to buy the item online (or in store if they’re local) and are able to contact the store where the item is located for more information.
6. Some of the used items available for sale are acoustic and electric guitars, amps, drum kits, cellos, trumpets, saxophones, and many other musical instruments and gear.
7. Music Go Round was founded in 1986 by Bill Shell in Minneapolis, Minnesota. The company was originally called Hi Tech Consignments Inc. When the Winmark Corporation purchased the company in 1993, the name was changed to Music Go Round. A year later, franchising officially began.
8. The Winmark Corporation owns four other resale franchises: Once Upon A Child, Plato’s Closet, Play It Again Sports, and Style Encore.
9. As of 2017, Music Go Round has 33 locations in the United States.
Entrepreneur’s Franchise 500
10. Music Go Round has ranked on Entrepreneur’s annual Franchise 500 list a few times in the past decade. Unfortunately, the company has not made the list in the last five years. The company’s highest rank was No. 474 in 2010 and its lowest rank was No. 497 in 2012.
Section II – Estimated Costs
- Please click here for detailed estimates of Music Go Round franchise costs, based on Item 7 of the company’s 2017 FDD (updated).
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Music Go Round’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.