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HobbyTown USA

Franchise Info
Q & A: Franchise

HobbyTown USA Franchise Information:

HobbyTown USA® is widely regarded as a leader in the retail hobby industry. A nationally registered franchise, we are ranked annually in the Entrepreneur 500, and Success Magazine has listed us as one of their top 100 franchises.

HobbyTown USA® franchisees receive the following benefits:

Financing assistance after the agreement is executed
Site location and lease negotiation assistance
Comprehensive store layout and design services
On-site training and opening assistance
Complete pre-opening and operations manuals
Ongoing business support from the home office
Point of purchase and inventory computer program and after-hours emergency support
Advertising and marketing support
Discount product purchase program and national buying power
Annual franchise convention with educational seminars and trade show

Why should I open a HobbyTown USA® franchise instead of opening an independent hobby shop?

HobbyTown USA® is the most trusted, recognized name in the hobby industry. We have special agreements with distributors and manufacturers so you can get products on your shelves quickly and at a lower cost. We have trained staff to assist you with any and all questions. We have an exclusive point-of-sale (POS) system, and we provide you with monthly financials to assist you in running your business. In addition, we have an annual owners' convention and trade show where you learn what is going on in the industry and see the latest and greatest products hitting the market.

Do I need hobby experience to open a HobbyTown USA® franchise?

No hobby experience is required to own a HobbyTown USA®. It is important that you have an interest in hobbies since you will be working with customers that are passionate about their hobby. However, it is more important that you have at least two years experience managing people or owning your own business.

What types of training do you offer franchisees?

Our training consists of three phases. In phase I, you will work and train for at least one week at one of our locations. For phase II, you will come to the home office for a week of business training. Phase III consists of onsite training lasting almost three weeks at your store, which takes place during the opening.

What product lines does HobbyTown USA® carry?

We are a full-line hobby retailer, with every aisle offering something different. Our lines include Model Railroading, Games, Radio Control Land, Models, Paints and Tools, Radio Control Air, Specialty and Educational Toys and Science. We have found carrying a diversity of product lines is key in the success of our stores.

How long will it take to open my HobbyTown USA® franchise?

From the time the lending and the lease are in place, it takes approximately 8 weeks to have your store up and running. Note: This can fluctuate depending upon how long the location build-out requires.

Can I own multiple units?

Yes, you can own more than one store. We do not encourage owning more than one location in the beginning to provide you ample time to learn the business. We recommend the growth of one store initially, as we have found that following this model increases your chances of success without increasing your overhead.

How do I get started?

Please fill in the form below to start the process today!

What our franchisees are saying:

"We're very pleased with the store support we receive from the corporate office. We wouldn't want to do this alone! Our store has been open for eight years now, and we have every intention of signing up for another ten."
-Bill and Annie Scott, HTU Indianapolis, IN

"We sell fun. Fun for kids and adults. Fun for families. We enjoy helping our customers by providing great customer service, excellent knowledge about what we sell and a wide selection of hobby products at competitive prices. We are hobbyists too. We are all passionate about our respective hobbies."
-Gary Phillips, HTU Knoxville, TN

HobbyTown USA® began in 1985 with one hobby store in Lincoln, Nebraska. Today, we are the largest hobby store in the world with over 160 HobbyTown USA® stores open or under development across the United States.

Please note interested parties should have at least $50K to invest.

Bob Wilke, President of Hobby Town Discusses Exceeding Franchisor Expectations

How was your HobbyTown USA originally started?

HobbyTown USA founders Thomas Walla and Merlin Hayes purchased a long established local hobby store in Lincoln, NE in 1980. After opening a second location in Lincoln they began to receive multiple inquiries about franchising the business.

What was your original vision for HobbyTown USA company? How has that changed over time?

The original franchise concept modeled the original Lincoln stores with a smaller inventory and footprint that was more narrowly focused on the hobby segments of games, plastic models, model railroading, surface radio control and general hobby supplies. The smaller stores were more suitable for servicing smaller market areas as more of a convenience to the local hobbyists. The franchise concept has evolved over the years into larger footprint stores with a greater diversity of inventory to include specialty toys and all versions of radio control products (land, sea and air) creating a much larger market draw. Operation of the franchise store has evolved and been enhanced with the development of a proprietary point of sale system, proprietary products and on-line sales.

What do you believe is the single most important factor when choosing a franchise?

The value of the service and support provided by the franchisor must always exceed the expectations and needs of the franchisees.

Why should someone choose a HobbyTown USA franchise over other similar franchises?

The value of the ongoing service and support of the franchisor exceeds the expectations and needs of the franchisees and provides opportunities for the franchisee to differentiate in the hobby and specialty toy marketplace.

What makes your industry attractive?

Both the hobby and specialty toy industries are constantly changing, selling fun and rewarding family products is gratifying to the retailer and the consumer.

What types of qualities do you look for in potential HobbyTown USA franchisees?

Hard working, high integrity individuals that seek to operate within a proven system and a desire to provide a community destination for family fun and entertainment.

What do your franchise fees and royalties cover?

We provide turnkey store opening, ongoing operational support, exclusive products and distribution, marketing services, annual national convention, proprietary point of sale system & software upgrades, monthly financial processing and income statement preparation, I/T support, national POS sales data analysis and inventory database maintenance.

How do territories work for your franchisees?

We provide a protected area based upon the inventory valuation in the store (larger inventories offer a proportionally larger protected territory).

Why has the HobbyTown USA franchise model been successful?

We have established a culture during the past twenty five years of developing and evolving the franchise system based on the best practices of our franchisees.

Where do you see HobbyTown USA in 5 years and 10 years?

Our vision is to continue to be the leading multi-channel retailer in the hobby and specialty toy industries by embracing, supporting and maximizing the strengths and diversity of each franchisee to become the foremost resource and destination for family fun and entertainment. We will continue to develop and expand US and international markets.

What is your favorite advice for new franchisees to help them succeed?

Follow our proven franchise system processes and best practices. After the store meets or exceeds our average sales and profitability performance you can begin to explore or consider additional stores and alternative retailing ideas and concepts.

What would you tell potential HobbyTown USA franchisees that may be nervous about the financial burdens of starting a franchise?

Regardless of start-up business there will be inherent risk. A franchise system with a history of success and experience will certainly increase your odds for success.

Can you explain your financial assistance?

We provide assistance in writing your business plan and guidance as you explore financing options.

On average, how long does it take to start a new HobbyTown USA franchise from the franchisees point of view?

Financing and site occupancy are the two primary variables. After the funding is in place and the lease is executed, we generally open for business in 8 weeks.

Liquid Capital Required: $60,000
Net Worth Required: $150,000
Total Investment: $225,000