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Entrepreneur: Start & Grow Your Business

HobbyTown USA

General hobbies & supplies, toys

Background

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.

Costs and Fees

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 and Support

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

Rankings

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);