Franchise Deep Dive: HobbyTown Franchise Costs, Fees, Profit and Data

LAST UPDATED: January 2024

FRANCHISE WEBSITE: https://hobbytownfranchise.com/ 

NUMBER OF LOCATIONS: 104

REPORTED COST TO GET IN: $323,000 - $587,500

REPORTED ROI (Item 19): $1,628,302 (average sales)

HobbyTown is a hobby and toy retail franchise concept that caters to niche hobbies and interests. The brand, which sells board games, models, puzzles and STEM items, has over 100 locations in 39 states across the country.

How Many HobbyTown Locations Are There?

HobbyTown originated in Lincoln, Nebraska in 1985. The brand was founded by Thom Walla, Merlin Hayes and Mary Hayes, and franchising opportunities were offered the following year. 

Today, there are more than 100 locations across 39 states.

What Is HobbyTown’s Business Model?

HobbyTown is a brick-and-mortar hobby and toy store that also offers online ordering to consumers. The brand sells items in the following categories: radio control items, models, paint and tools, puzzles and games, toys and STEM items. Additionally, the brand carries items from niche interests such as cars and trucks, helicopters, airplanes, boats and rock crawlers. 

Some of the better known brands carried by the retailer concept include LEGO, Hasbro and Ravensburger. 

How Much Can HobbyTown Franchise Owners Make?

According to the brand’s 2022 Franchise Disclosure Document (FDD), the average store sales were $1,628,302 for the year of 2021. This data includes 107 locations.

The average store sales among the top 10% of locations were $3,729,904, and the average sales among the top 50% of locations were $2,298,389.

How Much Does It Cost To Open HobbyTown?

The total initial investment necessary to begin operating a HobbyTown franchise ranges from $323,000 - $587,500. This includes a franchise fee of $49,000, which must be paid to the franchisor. 

Franchisees must also have at least $50K available in liquid capital and a minimum net worth of $250K.

What Is the Franchise Fee for HobbyTown?

The required franchise fee to begin operation of a HobbyTown franchise is $49,000. 

Who’s On HobbyTown’s Leadership Team?

• Thom Walla - Co-Founder and CEO
• Bob Wilke - President
• Tim Van Ert - Senior Vice President of Sales
• David Gaines - Vice President of Operations
• Todd Burgason - Chief Financial Officer
• Celeste Vanderlip - Vice President of Merchandising & Marketing
• Sue Ferguson - Director of Franchise Accounting
• Jon Asbach - Director of Information Systems
• Bob Dill - Director of Franchise Services
• Dave Nolte - Director of Software Development

What Helpful Articles Can I Read to Learn More About HobbyTown?

• An iconic Lincoln toy chain has been sold
• Double the fun: Lubbock's HobbyTown set to move to 2x larger building. Here's what's new
• Hobby Town owners decide it’s ‘perfect timing’ to close its doors
• HobbyTown to Move from Newport News to York County

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