HobbyTown Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$49,000
Investment required
$323,000 - $588,000
HobbyTown: Leading the Way in Specialty Hobby Retail
HobbyTown is a well-established retail franchise specializing in hobby, collectibles, and specialty toy products. The franchise was founded in 1985 by Thom Walla, Merlin Hayes, and Mary Hayes in Lincoln, Nebraska, where the company's headquarters remain today.
The first HobbyTown franchise store opened its doors in 1986, and since then, the brand has expanded significantly, now boasting over 100 locations across 39 states in the U.S., making it the largest brick-and-mortar hobby retailer in the world.
HobbyTown's product offerings include a wide range of items catering to hobby enthusiasts, such as radio control vehicles, model trains, puzzles, board games, educational STEM toys, and much more.
Initial investment
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
| Type of Expenditure | Amount |
| Franchise Fee or a reduced non-refundable fee of $5,000 for additional franchises or a transfer fee of $49,000 for a transferred location | $49,000 |
| Travel and Living Expenses While Training | $1,650 - $4,000 |
| Inventory | $150,000 - $300,000 |
| Retail Fixtures | $40,000 - $70,000 |
| Activity Area Material | $2,200 - $4,500 |
| Flooring, Painting, and Improvements | $17,000 - $32,000 |
| Shipping | $1,500 - $6,000 |
| Point of Sale Computer Hardware | $6,000 - $9,000 |
| Exterior Sign(s) | $6,000 - $15,000 |
| Low Voltage Network for Computer Information System, Security System, and Credit Card Machines | $2,750 - $3,500 |
| Other Equipment | $3,000 - $10,000 |
| Real Property and Miscellaneous (including Rent, Security Deposit, Utilities, Insurance, and Phone) | $7,500 - $15,000 |
| Initial Advertising | $5,000 - $10,000 |
| Supplies | $4,400 - $6,500 |
| Other Labor for Store Setup | $4,000 - $8,000 |
| Loan Fees/Interest | $0 - $5,000 |
| Additional Funds | $23,000 - $40,000 |
| ESTIMATED TOTAL | $323,000 - $587,500 |
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Franchise Disclosure Document
Training
HobbyTown Franchise provides a comprehensive training program designed to equip franchisees with the skills and knowledge needed to successfully operate their stores. The training covers several key areas:
- Initial Training: Franchisees undergo extensive training at the HobbyTown headquarters in Lincoln, Nebraska. This initial training includes in-depth instruction on store operations, merchandising, customer service, and the use of the point-of-sale system. Franchisees learn how to manage inventory, execute marketing strategies, and provide exceptional customer experiences.
- Ongoing Support and Training: After the initial training, HobbyTown offers continuous support through a network of Franchise Business Advisors (FBAs). These advisors provide hands-on assistance with everything from staff training to store setup and ongoing operational support. Additionally, HobbyTown offers regular updates on best practices and new product lines, ensuring that franchisees stay current with industry trends.
- Field Support: HobbyTown provides field support that includes in-store visits, where corporate representatives assist with optimizing store layouts, improving merchandising techniques, and ensuring that franchisees are meeting their business goals. This field support helps franchisees to continually refine their operations and maximize their store's potentia
Territory Protection
HobbyTown franchise offers territory protection to its franchisees, ensuring that each franchisee has an exclusive geographic area where they can operate without the risk of internal competition from other HobbyTown stores.
This territory protection is designed to help franchisees establish a strong market presence and grow their business with confidence, knowing that their efforts to build a customer base won't be undermined by another franchise opening nearby.
The protected territory is determined based on various factors, including population density and market potential, to ensure that each franchisee has a sufficient customer base to support their store.
