HobbyTown logo

HobbyTown

General hobbies and supplies, toys
Investment
$323,000
Initial Franchise Fee
$49,000
Units
104
Growth Rate
-9%

Overview

Industry
Retail
Founded
1969
Franchising Since
1986
Parent Company
HobbyTown Unlimited Inc.
Leadership
Bob Wilke, President
# of Employees at HQ
35

Units and Growth Chart

About HobbyTown

Thomas Walla, Merlin Hayes, and Mary Hayes opened a small hobby store in 1969. Then, in 1980, they bought out HobbyTown, a competing store. They began franchising in 1986 and, since then, HobbyTown has grown into the largest brick-and-mortar hobby retailer in the industry, with over 100 franchise locations across the U.S.

HobbyTown franchises operate on four core values to deliver the best possible customer experience. Among these four values, franchisees and their employees are expected to lead and serve, cultivate growth, bring it every day, and most importantly, keep calm and hobby on.

Why You May Want toStart a HobbyTown Franchise

Executive members and leaders within the HobbyTown brand are vested shareholders in the company. That being said, they want franchisees to do well and will give you the tools to run a business. With corporate backing, a turn-key operating system, and close connections with other HobbyTown stores, you'll have ample support.

HobbyTown's training takes place both onsite at a mentoring store and through Hobby University at company headquarters. Their field team will continue your training for three weeks prior to your store's opening day. HobbyTown's service team takes over when pre-launch training ends. They will provide ongoing support with IT, accounting, sales, marketing, inventory management and purchasing, and financial analysis. 

What Might Make a HobbyTown Franchise a Good Choice?

To open a HobbyTown store, you will need to be prepared to invest financially, which will include a franchise fee. Your total investment will depend on your store's size, build-out requirements, and starting inventory. On inventory, HobbyTown makes sure that you stock the best products for your local area. Using point-of-sale and online data, corporate experience, and vendor relationships, inventory is well-mixed and constantly changing to keep your store fresh and exciting for a wide range of customers. 

HobbyTown offers a few ways to get the most out of your store, including the choice to become an official retailer of RadioShack Express merchandise. When your store is listed as a retailer on radioshack.com, you may experience additional sales and new customers. Sales go beyond the physical location, as well. Customers can order products from your online store. There may also be an opportunity to expand to a multi-unit franchise. 

You may be wondering why opening a HobbyTown is a good idea with such a strong presence from online retailers like Amazon. Fortunately, HobbyTown has national brand awareness as a locally-owned store. The company uses this label to its advantage, offering competitive prices and reliable customer service.

How Do You Start a HobbyTown Franchise?

When looking to start a HobbyTown franchise,, it would be a good idea to scout different locations. Learn as much as you can about the brand and check your local community to match the market need. 

Franchisees will attend a discovery day at HobbyTown's corporate headquarters in Lincoln, Nebraska. Here, they will learn more about the opportunity and get ready to invest and sign documents. With continual company support, soon enough, you'll be helping customers do the things they love and maybe even finding new hobbies for yourself along the way.

Investment Details

Initial Franchise Fee
$49,000
Initial Investment
$323,000 - $587,500
Net Worth Requirement
$500,000
Cash Requirement
$100,000 - $200,000
Royalty Fee
4%
Ad Royalty Fee
2%
Technology Fee
0
Term of Agreement
10 years
Is Franchise Term Renewable?
Yes
Financing
Third Party
Veterans Incentive
$10,000 off franchise fee

Available Territories

Franchising opportunities available in the following regions

United States

States

Alaska Alabama Arkansas Arizona California Colorado Connecticut District of Columbia Delaware Florida Georgia Iowa Idaho Illinois Indiana Kansas Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania South Carolina South Dakota Tennessee Texas Utah Virginia Vermont Washington Wisconsin West Virginia Wyoming

Training & Support Programs

Comprehensive training and ongoing support to help you succeed

Training

On the Job Training
131 hours
Classroom Training
32 hours

Ongoing Support

Purchasing Co-ops
Newsletter
Meetings & Conventions
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform

Marketing Support

Co-op Advertising
Ad Templates
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations & Requirements

Key operational details and requirements for running this franchise

Is absentee ownership allowed?
Yes
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
# of employees required to run
4
Are exclusive territories available?
Yes

Ranking History

HobbyTown performance in the Franchise rankings over recent years

Find Your Perfect Franchise Match

See which franchises fit your budget and have open territories near you.

Sign Up for Our Franchise Newsletter

Stay up to date on the latest news and trends affecting the franchise industry.

Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022