Music Go Round: $1.32M Average Sales vs. $309K-$394K Franchise Cost (2024)

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 2024 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 2024 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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 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 2024 FDD, including information on the:

2023 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 30, 2023, grouped by year opened (2022, 2021, 2020, 2019, 2018, and 2017 and prior)

2023 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 30, 2023

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 30, 2023, 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 Roundfranchise costs, based on Item 7 of the company’s 2024 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: $18,300 to $21,800
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: $309,300 to $394,800

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 2024 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

2021

Company-Owned

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

2023

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 – the Resale Company Announces Resale Partnership with Roland and BOSS

Music Go Round Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Music Go Round Franchise (Item 19, 2024 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 2022, and were not transferred during 2023. This represents a subset of the 37 Music Go Round Stores in the United States that were open and operating as of December 30, 2023.

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 30, 2023.

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 30, 2023 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 30, 2023. 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 2023. No Stores closed in 2023 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 30, 2023

Year Opened – 2022

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%
2023 Average Gross Sales: $855,732
2023 Median Gross Sales: $855,732
2023 Average Gross Profit: $454,651
2023 Median Gross Profit: $454,651
Average Gross Profit Percentage: 53.13%
Sales Range: $855,732 to $855,732

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%
2023 Average Gross Sales: $534,097
2023 Median Gross Sales: $534,097
2023 Average Gross Profit: $296,264
2023 Median Gross Profit: $296,264
Average Gross Profit Percentage: 55.47%
Sales Range: $534,097 to $534,097

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%
2023 Average Gross Sales: $1,123,930
2023 Median Gross Sales: $779,772
2023 Average Gross Profit: $547,801
2023 Median Gross Profit: $368,131
Average Gross Profit Percentage: 48.74%
Sales Range: $509,845 to $2,082,171

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%
2023 Average Gross Sales: $677,492
2023 Median Gross Sales: $690,822
2023 Average Gross Profit: $320,106
2023 Median Gross Profit: $334,876
Average Gross Profit Percentage: 47.25%
Sales Range: $423,434 to $904,890

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%
2023 Average Gross Sales: $1,029,931
2023 Median Gross Sales: $880,529
2023 Average Gross Profit: $500,597
2023 Median Gross Profit: $435,169
Average Gross Profit Percentage: 48.60%
Sales Range: $841,720 to $1,367,544

Year Opened – 2017 and Prior

Number of Stores Reported: 24
Number and Percentage of Stores Attaining or Exceeding Average Gross Sales: 12/50%
Number and Percentage of Stores Attaining or Exceeding Average Gross Profit: 12/50%
2023 Average Gross Sales: $1,543,763
2023 Median Gross Sales: $1,339,121
2023 Average Gross Profit: $740,876
2023 Median Gross Profit: $675,691
Average Gross Profit Percentage: 47.99%
Sales Range: $237,250 to $3,621,499

Total

Number of Stores Reported: 36
Number and Percentage of Stores Attaining or Exceeding Average Gross Sales: 14/39%
Number and Percentage of Stores Attaining or Exceeding Average Gross Profit: 14/39%
2023 Average Gross Sales: $1,322,547
2023 Median Gross Sales: $1,078,107
2023 Average Gross Profit: $637,710
2023 Median Gross Profit: $513,196
Average Gross Profit Percentage: 48.22%

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 30, 2023 That Had Been in Operation for at Least 12 Months by the Same Franchisee or Owners for the 12-Month Period Ended December 30, 2023

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.

1st Quartile

Number of Stores: 9
2023 Gross Sales Range by Quartile: $1,679,479 to $3,621,499
2023 Quartile Average Gross Sales: $2,452,149
2023 Quartile Median Gross Sales: $2,149,148
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales: 3/33%
2023 Quartile Average Gross Profit: $1,167,100
2023 Quartile Median Gross Profit: $1,034,423
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit: 3/33%
Quartile Average Gross Profit Percentage: 47.59%

2nd Quartile

Number of Stores: 9
2023 Gross Sales Range by Quartile: $1,097,478 to $1,630,504
2023 Quartile Average Gross Sales: $1,363,127
2023 Quartile Median Gross Sales: $1,367,544
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales: 5/56%
2023 Quartile Average Gross Profit: $666,322
2023 Quartile Median Gross Profit: $679,806
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit: 5/56%
Quartile Average Gross Profit Percentage: 48.88%

3rd Quartile

Number of Stores: 9
2023 Gross Sales Range by Quartile: $784,112 to $1,058,736
2023 Quartile Average Gross Sales: $906,509
2023 Quartile Median Gross Sales: $880,529
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales: 3/33%
2023 Quartile Average Gross Profit: $434,178
2023 Quartile Median Gross Profit: $435,169
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit: 5/56%
Quartile Average Gross Profit Percentage: 47.90%

4th Quartile

Number of Stores: 9
2023 Gross Sales Range by Quartile: $267,250 to $779,772
2023 Quartile Average Gross Sales: $568,402
2023 Quartile Median Gross Sales: $534,097
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales: 4/44%
2023 Quartile Average Gross Profit: $283,240
2023 Quartile Median Gross Profit: $296,264
Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit: 5/56%
Quartile Average Gross Profit Percentage: 49.83%

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 2023

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 30, 2023, 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 2023:

2023 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%

2023 Range of Gross Sales: $250,001 to $500,000

Number of Stores Falling Within Range: 2
Average Gross Sales for Stores Within Range: $345,342
Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range: 1/50%
Gross Sales for Lowest Store Within Range: $267,250
Gross Sales for Highest Store Within Range: $423,434
Median Gross Sales for Stores Within Range: $345,342
Percent of Total Number of Stores (36) Within Range: 5.56%

2023 Range of Gross Sales: $500,001 to $1,000,000

Number of Stores Falling Within Range: 14
Average Gross Sales for Stores Within Range: $749,871
Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range: 9/64%
Gross Sales for Lowest Store Within Range: $509,845
Gross Sales for Highest Store Within Range: $994,929
Median Gross Sales for Stores Within Range: $781,942
Percent of Total Number of Stores (36) Within Range: 38.89%

2023 Range of Gross Sales: $1,000,001 to $2,000,000

Number of Stores Falling Within Range: 13
Average Gross Sales for Stores Within Range: $1,385,995
Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range: 6/46%
Gross Sales for Lowest Store Within Range: $1,026,583
Gross Sales for Highest Store Within Range: $1,984,989
Median Gross Sales for Stores Within Range: $1,367,544
Percent of Total Number of Stores (36) Within Range: 36.11%

2023 Range of Gross Sales: $2,000,001 to $3,000,000

Number of Stores Falling Within Range: 5
Average Gross Sales for Stores Within Range: $2,247,033
Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range: 1/20%
Gross Sales for Lowest Store Within Range: $2,065,733
Gross Sales for Highest Store Within Range: $2,772,349
Median Gross Sales for Stores Within Range: $2,149,148
Percent of Total Number of Stores (36) Within Range: 13.89%

2023 Range of Gross Sales: Greater Than $3,000,000

Number of Stores Falling Within Range: 2
Average Gross Sales for Stores Within Range: $3,584,854
Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range: 1/50%
Gross Sales for Lowest Store Within Range: $3,548,209
Gross Sales for Highest Store Within Range: $3,621,499
Median Gross Sales for Stores Within Range: $3,584,854
Percent of Total Number of Stores (36) Within Range: 5.56%

These results relate to specific Music Go Round Stores located in the United States.

Some Stores have sold or earned these amounts. Your individual results may differ. There is no assurance that you will sell or earn as much.

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

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