HobbyTown Franchise FDD, Costs & Fees (2025)

HobbyTown is a retail franchise that offers a wide range of hobby products, including remote-control vehicles, models, and games, catering to hobby enthusiasts of all ages.

HobbyTown is a well-established retail franchise specializing in hobby, collectibles, and specialty toy products. The franchise was founded in 1969 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
Initial Franchise Fee (or a transfer fee for a transferred location) $49,500
Travel and Living Expenses While Training $1,650 - $4,000
Inventory $150,000 - $300,000
Retail Fixtures $40,000 - $80,000
Activity Area Material $2,200 - $4,500
Flooring, Painting, and Improvements $17,000 - $32,000
Shipping $3,000 - $8,000
Point of Sale Computer $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 $30,000
Supplies $4,400 - $6,500
Other Labor for Store Setup $4,000 - $8,000
Loan Fees/Interest $0 - $5,000
Additional Funds (3 Months) $23,000 - $40,000
Estimated Total $350,000 - $620,000
Type of Expenditure Amount
Initial Franchise Fee (or a transfer fee for a transferred location) $49,500
Travel and Living Expenses While Training $1,650 - $4,000
Inventory $150,000 - $300,000
Retail Fixtures $40,000 - $80,000
Activity Area Material $2,200 - $4,500
Flooring, Painting, and Improvements $17,000 - $32,000
Shipping $3,000 - $8,000
Point of Sale Computer $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 $30,000
Supplies $4,400 - $6,500
Other Labor for Store Setup $4,000 - $8,000
Loan Fees/Interest $0 - $5,000
Additional Funds (3 Months) $23,000 - $40,000
Estimated Total $350,000 - $620,000

Franchise Disclosure Document

Competitors

Below are some of

HobbyTown

key competitors in the

Children Retail

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

94

New
+
-11%
-11%

$49,000

$350,000

$620,000

n.a.

$1,264,000

$xxx,xxx

34.7%

xx%

n.a.

5.0%

xx%

n.a.

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Upgrade to Pro to get access to:
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

See our plans

A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

Darren M.

Franchisee

Been waiting for years for this. All the most important franchises and their latest Franchise Documents to download. The team also updates the franchises very quickly.

Emily V.

Franchisee

Number of units

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:

  1. 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.
  2. 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.
  3. 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. 

Competitors

Tippi Toes

Tippi Toes offers dance classes for children, promoting physical activity and creativity. Franchisees receive training, marketing tools, and support to run a successful children's dance business.

Franchisees

?

47
+
47%
47%
Investment

?

$67,000 - $84,000

Rocket Fizz

Rocket Fizz offers a variety of nostalgic and unique candies, sodas, and gifts, providing a fun and nostalgic shopping experience for candy lovers.

Franchisees

?

101
+
19%
19%
Investment

?

$126,000 - $275,000

Learning Express Toys

Specialty toy store franchise offering a wide selection of educational and developmental toys, providing a fun and engaging shopping experience for children and parents.

Franchisees

?

89
+
-1%
-1%
Investment

?

$21,000 - $374,000

Kid to Kid

Children's resale franchise providing a wide selection of gently used clothing, toys, and gear, offering affordable and sustainable shopping options for families.

Franchisees

?

102
+
5%
5%
Investment

?

$349,000 - $579,000

HobbyTown

HobbyTown is a retail franchise that offers a wide range of hobby products, including remote-control vehicles, models, and games, catering to hobby enthusiasts of all ages.

Franchisees

?

94
+
-11%
-11%
Investment

?

$350,000 - $620,000

Children's Orchard

Children's Orchard is a resale franchise that sells gently used children's clothing, toys, and gear, providing affordable and sustainable options for parents.

Franchisees

?

15
+
-25%
-25%
Investment

?

$207,000 - $321,000