HobbyTown Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

106
+
-5%
-5%
Investment required

?

$323,000 - $588,000
Revenue (AUV)

?

$1,297,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$49,000
Royalty fees

?

4.00%
+
2.75%
Operating Profit

?

n.a.

Pro
Franchisees

?

106
+
-5%
-5%
Investment required

?

$323,000 - $588,000
Franchise fee

?

$49,000
Royalty fees

?

4.00%
+
2.75%
Revenue (AUV)

?

$1,297,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

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

Franchise Disclosure Document

Upgrade to Pro to download this FDD

Access the most comprehensive franchise database

Upgrade to Pro
Thank you for signing up
Complete your upgrade now
Signup successful!
Complete your upgrade

Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

106

+
-5%
-5%
No growth
New

$49,000

$323,000

-

$588,000

n.a.

$1,297,000

Pro

n.a.

Pro

n.a.

Pro

Retail

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. 

Number of units

2023
Franchised units

111

110

106

Company-owned units

0

0

0

Total units

111

110

106

Competitors

Tippi Toes

Investment required
$67,000
-
$84,000
Franchisees
47
+
47%
47%

Rocket Fizz

Investment required
$125,000
-
$266,000
Franchisees
85
+
8%
8%

Learning Express Toys

Investment required
$21,000
-
$374,000
Franchisees
89
+
-1%
-1%

Kid to Kid

Investment required
$349,000
-
$579,000
Franchisees
102
+
5%
5%

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Get unlimited access to:
2,145 franchises data
Number of locations
Franchise fees
Total investment

?

Download unlimited FDDs
Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit metrics

?

Upgrade to Pro

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
$180 / year
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

Upgrade to Pro
Signup successful!
Complete your upgrade

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