HobbyTown USA

Founded: 1969 Franchising since: 1986
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 and also has an e-commerce site.

HobbyTown USA stores sell games, toys, remote control cars and planes, train sets, rockets and models.

6301 S. 58th St. Lincoln, Nebraska 68516

Phone: (800)858-7370 Franchisee Association Franchise Advisory Council

Franchisor is a privately-held company with 55 employee(s); 55 employee(s) in franchise department.

Franchise Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2008	164	0	0	1
2007	170	0	0	1
2006	169	0	0	1
2005	164	0	0	2

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, United states, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Outside the U.S.: Australia/new zealand

Exclusive territories available.

Total investment: $177.6K-478K Franchise fee: $19.5K

Ongoing royalty fee: 3% Term of agreement: 10 years, renewable

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	Yes
Startup Costs	No	Yes
Equipment	No	Yes
Inventory	No	Yes
Accounts Receivable	No	No
Payroll	No	No

Qualifications
Cash liquidity requirement: $60K-300K

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)

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

Marketing Support

• Co-op advertising
• Ad slicks
• National media

Franchise 500® rank:
#302 (2009); #271 (2008); #255 (2007); #210 (2006); #274 (2005);

Ranked #1 in category in:
2009; 2007; 2006; 2005;

America's Top Global Franchises:
#179 (2007); #158 (2006); #185 (2005);