MUSIC-GO-ROUND

Item 7 lays out the initial investment from $339,200 to $458,900, covering leasehold improvements, inventory, and fixtures for a 2,500-4,000 sq ft store buying and reselling guitars, amps, and gear to musicians and parents. Upfront franchise fee hits $25,000, followed by ongoing 5% royalties on gross sales, $1,500 annual marketing fund, and $295 monthly software fees—totaling around 6-7% of revenue in outflows. Item 19 shines with average gross revenue of $959,541 and median $873,963 from 67 locations, implying top performers clear $1M+ while laggards dip under $700K; estimated profits swing wildly from a $102,359 loss to $315,180 gain, highlighting execution risks in sourcing quality used inventory.

System metrics paint a stable but slow-expanding picture: only 1 projected new unit amid 4 terminations and 1 transfer last year, suggesting cautious franchisor expansion since 1994 from Minneapolis HQ. No major red flags in litigation or bankruptcies, but the 67-unit footprint means limited economies of scale versus giants. For buyer targeting $800K+ sales in music hubs, this could net 20-30% margins post-fees if you nail local trade-ins; otherwise, thin profits loom in oversaturated spots.