FranchiseVerdict
Disc Replay logo
FV-00759·MODERATEExcellent81

Disc Replay

RetailFranchising since 2007Website
Investment
$297K – $793K
72nd pct Retail
Avg revenue
53rd pct Retail
Royalty
2.5%
2nd pct Retail
Units
30
30th pct Retail
SBA default

Bottom line

  • Total investment $297K – $793K including a $13K franchise fee, 2.5% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 67/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Disc Replay Worldwide, Inc.
Incorporated in
Illinois
HQ
18287 N. 98th Way, Scottsdale, AZ 85255
Auditor
Grant Cooper CPA
Audited financials
Franchisor revenue
$1.0M
vs $1.1M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Disc Replay unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: retail
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $297K–$793K
Working capital
$
FDD reports $30K–$80K

Unlevered ROIC · per unit

14%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$86K
EBITDA margin
11.5%
Total invested
$600K
Payback
83 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Disc Replay franchisees operate retail stores buying, selling, and trading used media (DVDs, Blu-rays, CDs, video games, vinyl records). Daily operations include inventory management, customer transactions, appraisals of traded media, store merchandising, and staff management. The model relies on consumer foot traffic and repeat customers seeking affordable entertainment media.

CEO
John Chesny
Founded
2007
FDD year
2023
States available
6

Item 7 · what it costs

The Vitals

Total investment
$297K – $793K
All-in to open one unit
Liquid capital
$30K – $80K
Cash you must have on hand
Franchise fee
$13K
Royalty
2.5%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
3.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
30
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
25.0%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2021
30±0
Franchised units
2022
30
Franchised units
2023
30
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 6 states reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

6

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

67
Risk · 0-100
MODERATE67 / 100

Disc Replay presents meaningful risk due to lack of financial transparency, franchisor stability concerns, and a small/stagnant unit base in a structurally declining retail category.

Score breakdown · what drove the 67 / 100 rating

  1. 01MEDNo Item 19 financial disclosure (average revenue and net income not disclosed) — impossible to validate ROI claims
  2. 02HIGHGoing Concern status is False — indicates potential financial instability or operational uncertainty at franchisor level
  3. 03MINOROnly 30 units systemwide with unknown growth trajectory — suggests stagnant or declining franchise system
  4. 04MINORWide investment range ($297k-$793k) without corresponding revenue guidance creates unpredictable profitability
  5. 05MEDUsed media retail model faces secular decline from streaming and digital alternatives
  6. 06HIGHNo litigation disclosed but absence of data is not absence of conflict — verify independently

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
20 years
Renewal term
15 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Arizona

Item 11

Training & Operations

Classroom training
38 hrs
On-the-job training
22 hrs
POS system
Proprietary software
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

2 numbers

Locked
(702) 927-••••
The franchisor is Disc Replay Worldwide, Inc. located at
AZ
(317) 895-••••
IN

One-time purchase · CSV download · Validation questions included

FDD download

Disc Replay · FDD (2023) PDF

Single-page checkout · instant download · CSV export of contacts available separately above