PLATOS CLOSET FRANCHISE PROGRAM
PLATOS CLOSET offers a Music Go Round® franchise to sell musical instruments and related accessories. Known for its retail store model in the used and new music gear market.
PLATOS CLOSET FRANCHISE PROGRAM franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Music Go Round® store is estimated to be between $335,300 and $443,700 [p.1]. This figure includes the amount you must pay to Winmark as specified in Item 7, which ranges from $18,800 to $22,700 for the POS System [p.27], along with other expenses detailed in the FDD.
What is the initial franchise fee?
The Initial Franchise Fee for a new Music Go Round® franchisee opening a single store is $25,000. For a second or subsequent store, or if you are an existing franchisee of one of Winmark's other franchised concepts, the fee is $15,000 [p.17].
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the specific amounts for ongoing royalties and advertising fees.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically ten years, as evidenced by the reacquisition of rights for eleven stores where individual agreements were signed with an initial term of ten years [p.72]. However, this isn't specified in the excerpts whether you can automatically renew the franchise or under what conditions renewal might occur.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires good cause as determined by the franchisor [p.145]. The transferee-franchisee must be approved by the franchisor and meet certain standards including managerial, financial, and business qualifications [p.101].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law [p.152]. Additionally, a franchisor can terminate a franchise prior to expiration for good cause, which includes the failure of the franchisee to comply with lawful provisions of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure [p.145].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you receive an 'Exclusive Territory' surrounding the location of your Music Go Round® Store when granted a franchise. This territory is typically a 3 to 5-mile radius around your Store and includes a development area where you can select a site for your Store, subject to Winmark's approval [p.33].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive three-part training program that includes both initial setup training and ongoing operational support. The first session covers general business issues relevant to owning a privately owned retail business, typically lasting four days. The second session focuses on sales and marketing, inventory purchasing, and store management, usually spanning five days. The third session involves hands-on training at an existing Music Go Round® Store for two days. Additionally, the franchisor offers ongoing assistance such as inspections of the store, advisory services, updates to the business system, and advertising support. [p.91]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 27, 2025, there were 31 Music Go Round® Stores that had been in operation by the same franchisee or owners for at least a year. No stores closed during the period after being open for less than 12 months, and no terminations are mentioned in the provided excerpts. Therefore, based on the information given, all 31 stores were still operating as of that date [p.43]. This isn't specified in the excerpts regarding the number of closed or terminated outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor, Winmark Corporation, shares certain financial performance representations. Specifically, Section 1 of Item 19 includes a statement of average annual gross sales and gross profit from some reporting Music Go Round® Stores for their 2025 fiscal year [p.43]. However, the franchisor does not make any financial performance representations beyond this, nor do they authorize employees or representatives to make such representations orally or in writing [p.47].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those goods and services that Winmark has approved. Additionally, you must offer all goods and services that Winmark designates as required for all franchisees [p.37]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than similar items purchased elsewhere [p.3].