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HobbyTown USA

2014 Franchise 500
#215
At a Glance

Products & Services: General hobbies and supplies, toys

Number of Locations: 162

Total Investment: $147K - $328K

Founded: 1969

Began Franchising: 1986

About HobbyTown USA

Merlin P. Hayes and his wife launched a hobby shop in Lincoln, Nebraska, in the 1970s. Through this store, Hayes met Thomas Walla, and together they bought out a competing store, Hobby Town, in 1980. From that one store HobbyTown USA was born. The company began franchising in 1986. Stores sell games, toys, remote control cars and planes, train sets, rockets and models.

Franchise Units

Year U.S. Canadian International Company Owned
2014 162 0 0 0
2013 156 0 0 0
2012 150 0 0 0
2011 147 0 0 0
2010 151 0 0 0
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $147,000 - $328,000
Franchise Fee: $20,000 - $25,000
Ongoing Royalty Fee: 3%
Term of Franchise Agreement: 10 years, renewable
Veteran Incentives: $10,000 off franchise fee
Financial Requirements
Net Worth: $100,000 - $250,000
Liquid Cash Available: $75,000 - $125,000
Operations
5% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 4. Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 1 week. At franchisee's location: 3 weeks.
Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives, Lease Negotiation
Marketing Support: Co-op advertising, Ad slicks, National media,

Franchise Ranking History

Franchise 500®: #215 (2014), #394 (2013), #383 (2012), #397 (2011),

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