The Figurine Shop is run by Carlov the sculptor.
The Minish Cap
The entrance to the Figurine Shop #is a clump of bushes found in the southwest corner of Hyrule Town. Link must go into the hollow tree, and then down a flight of stairs.
The Figurine Shop functions as a drawing where Link trades Mysterious Shells for a chance to win a figurine from the figure-dispensing machine. Figurines are of the various people, creatures, and enemies Link meets throughout the game. The starting price for a drawing is one Mysterious Shell. As more figurines are won, the chance of winning a new figurine for his collection decreases - to guarantee a second new figurine, Link must bet two shells; to guarantee a third he must bet three, and so forth. The probability can be also raised by exploring new areas, whereupon Carlov will make newer figurines as Link meets newer allies and enemies.
The figurines won are kept by Carlov in the figurine cabinet in the back of his shop, where Link can view them. Carlov will buy back figurines drawn that are already in Link's collection for five Rupees.
There are a total of 130 figurines to be won, with six more added to collect upon completing the game, making the total 136.
The reward for collecting all of the figurines is given by Herb, the man sitting outside Mama's Cafe. He will let Link inside his house, which contains a Piece of Heart, three Treasure Chests with 200 Rupees each, and a Phonograph.
After collecting all 136 figurines, the spot on the pause menu where the Mysterious Shells used to go is replaced with the Carlov Medal.