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.

Address: 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 Units

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

Where Seeking Franchisees
Nationwide
Outside the U.S.: Australia/New Zealand

Exclusive territories available.

Total investment: $177,600 - $478,000
Franchise fee: $19,500
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
Net worth requirement: $0
Cash liquidity requirement: $60,000 - $300,000

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)

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);

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