#383
At a Glance
Products & Services: General hobbies & supplies, toys
Number of Locations: 147
Total Investment: $150K - 334K
Founded: 1969
Began Franchising: 1986
Private Owned
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 and also has an e-commerce site.
HobbyTown USA stores sell games, toys, remote control cars and planes, train sets, rockets and models.
Franchise Units
| Year | U.S. | Canadian | International | Company Owned |
| 2011 | 147 | 0 | 0 | 0 |
| 2010 | 151 | 0 | 0 | 0 |
| 2008 | 164 | 0 | 0 | 1 |
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.
Startup Costs, Ongoing Fees and Financing
Total Investment: $150,000 - $334,000
Franchise Fee: $20,000 - $25,000
Ongoing Royalty Fee: 3%
Term of Franchise Agreement: 10 years, renewable
Franchise Fee: $20,000 - $25,000
Ongoing Royalty Fee: 3%
Term of Franchise Agreement: 10 years, renewable
Financial Requirements
Liquid Cash Available: $75,000 - $165,000
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).| Financing Type | In-House | Third Party |
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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,
Marketing Support: Co-op advertising, Ad slicks, National media,