Music Go Round Franchise FDD, Profits & Costs (2025)
Launched in 1986 by Bill Shell in Minneapolis, Minnesota, Music Go Round has grown into a trusted destination for musicians looking to buy and sell gently used musical instruments and gear.
The company joined the Winmark Corporation portfolio in 1993 and began franchising the following year, steadily growing its footprint to over 35 stores throughout North America.
Music Go Round specializes in a broad selection of secondhand musical equipment, including guitars, drums, keyboards, professional audio systems, and related accessories.
By sourcing used gear directly from customers and reselling it at budget-friendly prices, the brand makes quality instruments more accessible to music enthusiasts at all levels.
The franchise stands out for its strong focus on eco-friendly practices and community involvement. Each year, Music Go Round helps divert over 225,000 items from landfills by giving pre-owned instruments a second life.
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Initial Investment
How much does it cost to start a Music Go Round franchise? It costs on average between $337,000 – $431,000 to start a Music Go Round franchised facility.
This includes expenses for store build-out, fixtures, inventory of used musical instruments, and initial working capital. The total investment varies based on several factors, such as the store’s size, geographic location, and whether the franchisee opts to lease or buy the retail space.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 |
| Fixtures and Supplies | $25,000 to $35,000 |
| Signs | $11,000 to $16,000 |
| Security System and/or Cameras | $1,500 to $4,000 |
| Point-of-Sale (POS) System | $18,050 to $22,000 |
| Leasehold Improvements | $9,000 to $11,000 |
| Build-Out | $30,000 to $45,000 |
| Deposits and Business Licenses | $5,000 to $15,000 |
| Opening Inventory | $120,000 to $130,000 |
| Miscellaneous Pre-Opening Expenses | $35,000 to $50,000 |
| Rent – First 3 Months | $17,500 to $27,500 |
| Additional Funds – 3 Months | $40,000 to $50,000 |
| Total | $337,050 to $430,500 |
Average Revenue (AUV)
How much revenue can you make with a Music Go Round franchise? A Music Go Round franchised franchise makes on average $1,116,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $434,000 yearly revenue for similar other retail franchises. Below are a few Music Go Round competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Music Go Round Franchise Disclosure Document
Frequently Asked Questions
How many Music Go Round locations are there?
As of the latest available data, Music Go Round operates 34 franchised locations across the United States.
What is the total investment required to open a Music Go Round franchise?
The total investment required to open a Music Go Round franchise ranges from $327,000 to $431,000.
What are the ongoing fees for a Music Go Round franchise?
Music Go Round franchisees are required to pay a royalty fee of 5% of gross sales on a monthly basis. In addition to the royalty, franchisees must contribute up to 3% of gross sales toward a national advertising fund.
These ongoing fees support the brand’s operations, marketing campaigns, and continued development, helping franchisees maintain visibility and benefit from the collective strength of the Music Go Round network.
What are the financial requirements to become a Music Go Round franchisee?
To become a Music Go Round franchisee, you need a minimum net worth of $400,000 and liquid capital between $90,000 and $105,000. These requirements ensure you have sufficient funds to cover startup costs and initial operations.
How much can a Music Go Round franchise owner expect to earn?
The average gross sales for a Music Go Round franchise are approximately $1.12 million per location. Assuming a 15% operating profit margin, $1.12 million yearly revenue can result in $168,000 EBITDA annually.
Who owns Music Go Round?
Music Go Round is a franchise owned by Winmark Corporation, a Minneapolis-based company specializing in resale retail franchises.
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