In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Music Go Round franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Music Go Round franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Music Go Round outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Music Go Round franchise opportunity

Section V – Presentation and analysis of Music Go Round’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 average, median, high, and low gross sales and average and median gross profit for the 36 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, 2022, grouped by year opened (2021, 2020, 2019, 2018, 2017, and 2015 and prior)

• 2022 average, median, high, and low gross sales and average and median gross profit for the first, second, third, and fourth quartiles of the 36 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, 2022

• number and percentage of 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, 2022, grouped by range of gross sales ($0 to $250,000; $250,001 to $500,000; $500,001 to $1,000,000; $1,000,001 to $2,000,000; $2,000,001 to $3,000,000; and greater than $3,000,000)

Section VI – Key ratios, comparables, computations, and analyses for the Music Go Round franchise opportunity (exclusive content for Platinum subscribers)

Section I – Music Go Round Franchise Costs

• Music Go Round franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $25,000
• Fixtures and Supplies:  $23,000 to $31,000
• Signs:  $8,000 to $14,000
• Security System and/or Cameras:  $1,000 to $4,000
• Point-of-Sale (POS) System:  $18,100 to $21,500
• Leasehold Improvements:  $9,000 to $11,000
• Build-Out:  $25,000 to $40,000
• Deposits and Business Licenses:  $5,000 to $9,000
• Opening Inventory:  $120,000 to $130,000
• Miscellaneous Pre-Opening Expenses:  $30,000 to $50,000
• Rent for First 3 Months:  $15,000 to $24,000
• Additional Funds for 3 Months:  $30,000 to $35,000
• Total Estimated Music Go Round Franchise Costs:  $309,100 to $394,500

Section II – Music Go Round’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Music Go Round’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $25,000
• Continuing Fee:  4% of Gross Sales
• Marketing Fee:  $1,500 per year
• Cooperative Advertising:  maximum amount is 5% of Gross Sales
• Local Marketing Expenses:  minimum amount, when combined with cooperative advertising expenses, is 5% of Gross Sales
• Advertising Fee:  if Winmark imposes this fee, you will pay up to 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Music Go Round Outlets

Franchised

2020

• Outlets at the Start of the Year:  37
• Outlets at the End of the Year:  37
• Net Change:  0

2021

• Outlets at the Start of the Year:  37
• Outlets at the End of the Year:  37
• Net Change:  0

2022

• Outlets at the Start of the Year:  37
• Outlets at the End of the Year:  37
• Net Change:  0

Company-Owned

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Music Go Round Franchise

• Winmark Corporation Announces Year End Results

• Winmark Leads the Way in Reselling and Sustainability

• Resale Retail Franchising: An Interview with Winmark Corporation

• Winmark Embarks on Canadian Store Expansion for Its Retail Resale Franchise Banners [Interview]

• Music Go Round Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Music Go Round Franchise (Item 19, 2023 FDD)

• The following is a financial performance representation titled “Music Go Round Statement of Average Annual Sales and Gross Profit.”

• The gross profit figures in this Item 19 do reflect the cost of sales but do not reflect the operating expenses that must be deducted from the gross profit figures to obtain your net income or profit.

• The following statement of average annual sales and gross profits includes annual gross sales and gross profits as reported by the 36 franchised Music Go Round Stores located in the United States that commenced operations during the years 1996 through 2021.

• This statement includes information from only those franchised Music Go Round Stores located in the United States that had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2022.

• No other franchised Music Go Round Stores are included in this statement due to insufficient history of operations (not in operation for the 12-month period ended December 31, 2022 or transferred during this period).

• There were 36 franchised Music Go Round Stores which had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2022. All 36 Stores are reflected in the average.

• This financial performance representation does not include information for the 1 Music Go Round Store that transferred in 2022. No Stores closed in 2022 after being open less than 12 months.

Part 1 – Statement of Average Gross Sales and Gross Profit of the 36 Franchised Music Go Round Stores for the Fiscal Year Ended December 31, 2022

Year Opened – 2021

• Number of Stores Reported:  1
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  0/0%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  0/0%
• 2022 Average Gross Sales:  $651,819
• 2022 Median Gross Sales:  $651,819
• 2022 Average Gross Profit:  $373,427
• 2022 Median Gross Profit:  $373,427
• Average Gross Profit Percentage:  57.29%
• Sales Range:  $651,819 to $651,819

Year Opened – 2020

• Number of Stores Reported:  3
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  1/33%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  1/33%
• 2022 Average Gross Sales:  $1,085,863
• 2022 Median Gross Sales:  $731,436
• 2022 Average Gross Profit:  $529,583
• 2022 Median Gross Profit:  $334,778
• Average Gross Profit Percentage:  48.77%
• Sales Range:  $607,938 to $1,918,215

Year Opened – 2019

• Number of Stores Reported:  4
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  0/0%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  0/0%
• 2022 Average Gross Sales:  $690,838
• 2022 Median Gross Sales:  $771,595
• 2022 Average Gross Profit:  $323,032
• 2022 Median Gross Profit:  $365,155
• Average Gross Profit Percentage:  46.76%
• Sales Range:  $341,027 to $879,134

Year Opened – 2018

• Number of Stores Reported:  3
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  1/33%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  1/33%
• 2022 Average Gross Sales:  $1,016,223
• 2022 Median Gross Sales:  $887,151
• 2022 Average Gross Profit:  $478,248
• 2022 Median Gross Profit:  $419,268
• Average Gross Profit Percentage:  47.06%
• Sales Range:  $850,972 to $1,310,547

Year Opened – 2017

• Number of Stores Reported:  1
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  1/100%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  1/100%
• 2022 Average Gross Sales:  $1,513,905
• 2022 Median Gross Sales:  $1,513,905
• 2022 Average Gross Profit:  $750,594
• 2022 Median Gross Profit:  $750,594
• Average Gross Profit Percentage:  49.58%
• Sales Range:  $1,513,905 to $1,513,905

Year Opened – 2015 and Prior

• Number of Stores Reported:  24
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  14/58%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  13/54%
• 2022 Average Gross Sales:  $1,466,720
• 2022 Median Gross Sales:  $1,414,452
• 2022 Average Gross Profit:  $703,003
• 2022 Median Gross Profit:  $675,101
• Average Gross Profit Percentage:  47.93%
• Sales Range:  $282,305 to $3,296,683

Total

• Number of Stores Reported:  36
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  17/47%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  16/44%
• 2022 Average Gross Sales:  $1,289,906
• 2022 Median Gross Sales:  $1,097,365
• 2022 Average Gross Profit:  $619,770
• 2022 Median Gross Profit:  $519,658
• Average Gross Profit Percentage:  48.05%

• None of the reporting Stores opened in 2016.

• “Gross Sales” means all revenues the franchisee receives from the sale of goods and services, whether by cash or by check, credit card or trade, in connection with the Store, less sales tax and customer refunds and returns.

• Average Gross Profit equals Gross Sales less Cost of Goods Sold. Gross Profit does not reflect any expenses related to the operation of a Music Go Round Store other than Cost of Goods Sold.

Part 2 – Statement of Sales Ranges by Quartile for the 36 Franchised Music Go Round Stores Open on December 31, 2022 That Had Been in Operation for at Least 12 Months by the Same Franchisee or Owners for the 12-Month Period Ended December 31, 2022

• Quartile refers to that portion of the total number of Stores open that represents 25%. For example, the first Quartile identifies those Stores that were in the top 25% of all Stores in Gross Sales.

• These results relate to specific Music Go Round Stores located in the United States. Your individual results may differ.

1st Quartile

• Number of Stores:  9
• 2022 Gross Sales Range by Quartile:  $1,554,485 to $3,296,683
• 2022 Quartile Average Gross Sales:  $2,253,954
• 2022 Quartile Median Gross Sales:  $1,979,508
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  3/33%
• 2022 Quartile Average Gross Profit:  $1,077,589
• 2022 Quartile Median Gross Profit:  $966,780
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  3/33%
• Quartile Average Gross Profit Percentage:  47.81%

2nd Quartile

• Number of Stores:  9
• 2022 Gross Sales Range by Quartile:  $1,102,707 to $1,513,905
• 2022 Quartile Average Gross Sales:  $1,387,503
• 2022 Quartile Median Gross Sales:  $1,434,018
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  6/67%
• 2022 Quartile Average Gross Profit:  $669,293
• 2022 Quartile Median Gross Profit:  $676,645
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  6/67%
• Quartile Average Gross Profit Percentage:  48.24%

3rd Quartile

• Number of Stores:  9
• 2022 Gross Sales Range by Quartile:  $780,009 to $1,092,023
• 2022 Quartile Average Gross Sales:  $919,079
• 2022 Quartile Median Gross Sales:  $887,151
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  3/33%
• 2022 Quartile Average Gross Profit:  $432,059
• 2022 Quartile Median Gross Profit:  $411,861
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  3/33%
• Quartile Average Gross Profit Percentage:  47.01%

4th Quartile

• Number of Stores:  9
• 2022 Gross Sales Range by Quartile:  $282,305 to $751,318
• 2022 Quartile Average Gross Sales:  $599,086
• 2022 Quartile Median Gross Sales:  $651,819
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  6/67%
• 2022 Quartile Average Gross Profit:  $300,140
• 2022 Quartile Median Gross Profit:  $334,778
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  5/56%
• Quartile Average Gross Profit Percentage:  50.10%

Part 3 – Number of Stores, Average and Median Gross Sales, Lowest and Highest Gross Sales Amount in Each Range, and Percentage of Total Number of Stores That Fell Within Certain Ranges of Gross Sales for 2022

• Based on information reported by the 36 Music Go Round Stores which had been in operation by the same franchisee or owner for the 12-month period ended December 31, 2022, the following chart sets forth the number of Stores, average and median Gross Sales, the lowest and highest Gross Sales amount in each range, and the percentage of total number of Stores that fell within certain ranges of Gross Sales for 2022:

2022 Range of Gross Sales:  $0 to $250,000

• Number of Stores Falling Within Range:  0
• Average Gross Sales for Stores Within Range:  0
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  0/0%
• Gross Sales for Lowest Store Within Range:  0
• Gross Sales for Highest Store Within Range:  0
• Median Gross Sales for Stores Within Range:  0
• Percent of Total Number of Stores (36) Within Range:  0%

2022 Range of Gross Sales:  $250,001 to $500,000

• Number of Stores Falling Within Range:  2
• Average Gross Sales for Stores Within Range:  $311,666
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  1/50%
• Gross Sales for Lowest Store Within Range:  $282,305
• Gross Sales for Highest Store Within Range:  $341,027
• Median Gross Sales for Stores Within Range:  $311,666
• Percent of Total Number of Stores (36) Within Range:  5.56%

2022 Range of Gross Sales:  $500,001 to $1,000,000

• Number of Stores Falling Within Range:  13
• Average Gross Sales for Stores Within Range:  $758,998
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  6/46%
• Gross Sales for Lowest Store Within Range:  $552,112
• Gross Sales for Highest Store Within Range:  $909,385
• Median Gross Sales for Stores Within Range:  $751,318
• Percent of Total Number of Stores (36) Within Range:  36.11%

2022 Range of Gross Sales:  $1,000,001 to $2,000,000

• Number of Stores Falling Within Range:  17
• Average Gross Sales for Stores Within Range:  $1,466,525
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  7/41%
• Gross Sales for Lowest Store Within Range:  $1,002,270
• Gross Sales for Highest Store Within Range:  $1,979,508
• Median Gross Sales for Stores Within Range:  $1,437,528
• Percent of Total Number of Stores (36) Within Range:  47.22%

2022 Range of Gross Sales:  $2,000,001 to $3,000,000

• Number of Stores Falling Within Range:  2
• Average Gross Sales for Stores Within Range:  $2,278,117
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  1/50%
• Gross Sales for Lowest Store Within Range:  $2,015,844
• Gross Sales for Highest Store Within Range:  $2,540,390
• Median Gross Sales for Stores Within Range:  $2,278,117
• Percent of Total Number of Stores (36) Within Range:  5.56%

2022 Range of Gross Sales:  Greater Than $3,000,000

• Number of Stores Falling Within Range:  2
• Average Gross Sales for Stores Within Range:  $3,229,572
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  1/50%
• Gross Sales for Lowest Store Within Range:  $3,162,460
• Gross Sales for Highest Store Within Range:  $3,296,683
• Median Gross Sales for Stores Within Range:  $3,229,572
• Percent of Total Number of Stores (36) Within Range:  5.56%

Section VI – Music Go Round Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️