Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$296K - $378K
- Units as of 2022
37 8.8% over 3 years
Here’s what you need to know if you’re interested in opening a Music Go Round franchise.
Love playing music or admire specific instruments? Then step on down to Music Go Round! Originally called Hi Tech Consignments Inc., Music Go Round was founded in 1986 by Bill Shell in Minneapolis, Minnesota. It is one of the largest franchise retailers dealing in new and used musical instruments and equipment. They buy, sell, trade, and consign musical items.
There are over 35 Music Go Round locations across the United States. The company is still looking to expand its reach throughout the U.S.
Why You May Want to Start Music Go Round Franchise
With a Music Go Round franchise, the franchisee may benefit from unwavering support from the company. The support should include assistance with the business plan and management, site selection, merchandising, and marketing tactics. You will also benefit from the outstanding retail experience and customer care services necessary for smooth business operations.
Music Go Round also makes fair use of technology by employing the web and social media to plan for future success. You shouldn't need to develop software to aid in business operations' efficiency.
You probably will not need prior experience in running a business before you can own this franchise. All new franchisees will complete over a dozen hours of on-the-job training sessions and multiple dozens of hours of classroom training.
You also may not need to hire many employees, as Music Go Round locations can often operate with only a few employees.
What Might Make a Music Go Round a Good Choice?
To be part of the Music Go Round team, you should make sure you are financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include royalty, advertising, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements. The term agreement typically lasts for ten years, after which you may have the option of renewing it if you meet the criteria.
The franchisor has partnered with third-party financers that may help cover costs associated with the franchise fee, startup cost, inventory, and equipment.
How To Open a Music Go Round Franchise
As you decide if opening a Music Go Round franchise is a good decision for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Starting a Music Go Round franchise may be very easy. First, make your intentions known by requesting an information kit. Once you've received that, you will be required to fill out an application form with your details.
Someone from the company headquarters, which is located in Minneapolis, Minnesota, may give you a call to review the franchisee requirements and the desired territory. After this, you may receive an invitation to attend a corporate training session. Once training's over, you'll be free to open your Music Go Round franchise.
About Music Go Round
- Franchising Since
- 1994 (28 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Canada
- # of Units
- 37 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Music Go Round franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $295,500 - $378,300
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $90,000 - $105,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Music Go Round has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 16 hours
- Classroom Training
- 50 hours
- Ongoing Support
Purchasing Co-opsToll-Free LineOnline SupportSecurity & Safety ProceduresLease NegotiationSite Selection
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Music Go Round? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Music Go Round landed on this year’s Franchise 500 Ranking versus previous years.
Are you eager to see what else is out there? Browse more franchises that are similar to Music Go Round.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
Looking for information about how to open a Blue Moon Estate Sales franchise? Here's what you need to know.
Here are 20 questions that will save you time and money. There are great franchise options out there, but you must do your due diligence.
Turns out eating breakfast, working out, riding a rollercoaster and getting a job have something in common.
With a smarter strategy, your next recruit is clicks away.
Challenge Island recently helped a franchisee in New Mexico transform her location into a nonprofit. Here, she explains why she made the decision, and how it works.