Rank no. 394 – HobbyTown USA – US
Products & Services: General hobbies & supplies, toys
Number of Locations: 156
Total Investment: $137K – 332K
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 and also has an e-commerce site.
HobbyTown USA stores sell games, toys, remote control cars and planes, train sets, rockets and models.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $20,000 – $25,000
Ongoing Royalty Fee: 3%
Term of Franchise Agreement: 10 years, renewable
Net Worth: $100,000 – $250,000
Liquid Cash Available: $75,000 – $125,000
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).