OFFICE
HobbyTown USA® was recently selected as a GI Jobs Military Friendly Franchise; this signifies that we rank in the top 10 percent of all franchises nationwide who provide jobs for military veterans.
To honor those men and women who have served in the U.S. military, HobbyTown USA® is a member-company of the Veterans Transition Franchise Initiative, known as “VetFran.” VetFran was developed to help veterans transition to civilian life by encouraging franchise ownership through financial incentives. To date, nearly 400 franchise companies participate in the program.
As a participant in this initiative, HobbyTown USA® offers $10,000 off of the franchise fee for honorably discharged veterans.
- Why should I open a HobbyTown USA® franchise instead of opening an independent hobby shop?
- Do I need hobby experience to open a HobbyTown USA® franchise?
- What types of training do you offer franchisees?
- Does HobbyTown USA® offer Marketing and Advertising support?
- Is my market large enough for a HobbyTown USA®?
- How do I know what inventory to carry in my store?
- What is the best time to open a HobbyTown USA®?
- Is it possible to have a manager run my HobbyTown USA® franchise?
- What product lines does HobbyTown USA® carry?
- Does HobbyTown USA ® offer location assistance?
- What is the cost to open a HobbyTown USA® franchise?
- How long will it take to open my HobbyTown USA® franchise?
- Do you offer financing assistance?
- What is the franchise fee?
- What is the royalty fee?
- What do lenders require?
- Can I own multiple units?
- How do I get started?
The TeamRoom is here to provide you with an online resource for all things relating to running your store. It is your access points to the various Home Office departments and is one of the Home Office's primary methods of communication. This site is updated on a weekly basis and has many files, articles and utilities to help increase your efficiency and make it easier for you to operate your business.
You can also download this form in PDF format if you would rather print and mail the application.
Click here to download the application.
POS Software & Information Technology
Services: The Short List
Point-of-Sale Software
We provide our proprietary SMART Suite of programs for processing customer sales, creating and sending vendor product orders, and product database management as well as inventory control, customer tracking, and data reporting to the corporate office. This program was created for HobbyTown USA® stores exclusively, and has been developed around our specific needs and processes.
Vendor Integration
The SMART POS and Ordering Program can create files for on-line transfer with our larger vendors using exclusive data formatting which allows for simple confirmation processes for product orders.
Database Maintenance
We maintain a database of over 250,000 products available from over 100 vendors, and create weekly updates to assure that the newest products and most current pricing are available to you.
E-Commerce Management
The SMART program interfaces with our web-site E-Commerce sales programs to streamline processing and management of all web-based transactions.
In-House Development
Our Software Development team continually adds improvements and makes modifications to stay current in the ever-changing retail marketplace. New software versions are available three to five times per year for no additional fee.
Turn-Key Hardware Deployment
Our IT department will ship your store’s computer hardware ready to plug in and start operating. We obtain and configure all of your systems and data here to allow you to “hit the ground running”.
Operational Support
All home office departments contribute to ongoing support of your store software and hardware needs, whether answering questions about basic operations or troubleshooting catastrophic hardware failures.
Emergency Support
After hours and on weekends, if you experience a problem processing transactions, support can be reached via a 1-800 service to help resolve the problem as quickly as possible. We are often able to use remote internet access protocols to solve issues directly.
Operations Department
Services: The Short List
Establishing Your Business
Opening any business can be a daunting challenge. Our well established store opening systems continue to evolve and simplify the process for you. We will walk you through the many tasks that will need to be completed before our Field Manager arrives onsite to prepare for your Grand Opening.
Layout
We will utilize our experience in layout design and merchandising to provide a custom floor plan to accommodate and maximize the utility of your retail site. Our full complement of services include the layout and procurement of fixtures and flooring as well as placement and specification of walls, electrical and lighting.
Project Boxes
As a HobbyTown USA® franchisee, you will receive complimentary products included in our “Project Boxes” to familiarize you with some of the products that you will be selling in your store. You will begin receiving the “Project Boxes” following the execution of your commercial property lease.
Inventory selection
We collect point of sale (SMART POS) data from all of our franchise stores to continually analyze and modify our recommended inventory selection to ensure that you open with the newest and best selling inventory available. Your opening inventory selection is based on our national sales history and is updated monthly after you open via our proprietary POS software.
Buyer’s Club
One of the primary advantages of HobbyTown USA® franchise ownership is the opportunity to purchase from industry suppliers at exclusive terms and discounts. We compliment our supply chain with our corporate “Buyers Club” which distributes merchandise exclusively to HobbyTown USA® franchise stores at the lowest possible pricing. The “Buyers Club” also offers a growing selection of proprietary branded product that improves your profit margins and promotes customer loyalty.
Marketing Department
Services: The Short List
Quarterly Collateral
Each quarter the marketing department creates new branding materials available to the franchisees with no design fees attached. This collateral contains all materials to create a uniform campaign and imagery throughout the store.
Marketing Library
In partnership with Jacob North Print, we have created a web site that will allow franchisees to log into their account and order quarterly material direct to their store, with all necessary changes to the collateral, i.e. store address, phone, hours, etc.
Marketing Subscription Service
In conjunction to the newly launched marketing library, a six month and yearly campaign subscription is available in the following packages: Small $139.99/month - Medium $164.99/month - Large $192.99/month each including 14 campaigns.
Discounted Printing Services
Because the marketing department has created a partnership with Jacob North print, it gives everyone the ability to take advantage of major print discounts. Since we order in such a large quantity, the per piece price is extended to franchisees creating the overall price to be significantly less than local print shops such as Kinko’s.
Social Network Training
As digital marketing becomes more and more relevant to our business, the marketing department offers individual franchisee social network training on sites such as Hobzob, Facebook, Twitter, MySpace, You Tube, Linked In, Word Press, etc.
Social Networking Plans
Alongside training, the team will help franchisees piece together a suitable social networking plan that is customized for their store and their needs.
E-mail Marketing
The marketing department will help each franchisee find appropriate opportunities for store level e-mail marketing campaigns and send them to the customer e-mail database. After each campaign sent, we will also analyze the analytics.
Media Buying
We offer franchisees a media buying program that will handle the placement of ads in various mediums, including (but not limited to), print, radio, television, outdoor, and theatre.
Radio and Commercial
We have a variety of television commercials and radio scripts to choose from, including scripts that qualify for either Great Planes or Horizon co-op reimbursement.
Direct Mail
The marketing department has a wide variety of postcards and direct mail pieces currently available and is always in the process of adding new designs to the library by building on quarterly collateral.
Franchise Services
Services: The Short List
Getting Started
Our objective in your initial training is to provide you with multiple opportunities to learn our best practices and systems that are in place to maximize your success as a HobbyTown USA® franchise owner. We combine mentoring at a high performance franchise location, training at HTUniversityTM with our specialized home office support team and onsite training in your store to prepare you for a successful franchise ownership experience.
Building Your Store
The excitement really begins when all of the pieces come together to construct your store. Our specialized Field Manager will be onsite to coordinate the opening process from the arrival of your inventory and fixtures to the complete merchandising of your store. Once the store is set we will prepare you and your team for the Grand Opening of the HobbyTown USA® customer experience in your store. Our Field Manager will return onsite approximately 90 days after your Grand Opening to provide advanced training and development and identify opportunities to enhance your business.
Ongoing Performance Support
Our Franchise Services performance support team provides ongoing assistance with the daily operations of your store. Our services are specialized in key areas to specifically support your individual needs and strengthen your skills to maximize the profitability and efficiency of the daily operation of your store.
Budgeting & Financial Services
The Franchise Services performance support team offers several services to navigate the financial challenges of operating a small business. As a HobbyTown USA® franchise owner we provide you with the preparation of monthly financial statements along with analysis and budgeting assistance. We also have weekly accounts payable services available to further enhance the financial management assistance we can provide.
Inventory Management
The inventory selection and purchasing systems of HobbyTown USA® are a key driver in your success as a franchise owner. We have established relationships with key vendors and suppliers in the hobby and specialty toy industries to further enhance your ability to maximize profits and provide your customers with the best selling toy and hobby products available.
Ongoing Training
We never stop learning and continually seek out the best practices of HobbyTown USA® franchise owners. Our Franchise Services performance support team offers continuing education for you and your customer service staff in all aspects of franchise store operations. We offer continual individual consultation along with the facilitation of regional and national meetings to further advance your skills and knowledge to effectively manage and grow your business.
E-Commerce Department
Services: The Short List
Vision
HobbyTown USA® is committed to maximizing your opportunities by effectively implementing the most current web based and database management technology in order to grow sales and profitability in the market place. These technologies create greater consumer awareness and strengthening of the HobbyTown USA® brand, driving customers to your store, creating a multi-channel revenue stream, elevating the average transaction and differentiating HobbyTown USA® from other hobby brands
Branding
Art + Commerce + Culture. HobbyTown USA® stands for personal achievement realized through passion and innovation. We believe there are no limits to fun and that you are never too old to play. We are a place where nostalgia meets fresh ideas; where pioneering is a hobby within itself. We believe in a shift from imagination to possibility, and grow possibilities into realities. We believe in make-believe and the undeniable power of super glue. We believe racing doesn’t always require a helmet; we believe in the underdog. We are about laughing and learning and the desire for both. We believe our success comes from you and when you are among us, you are among friends.
Security
Credit card and web security standards change every day. The web development team has remained proactive in this area by protecting our business interests using SSL and forming a partnership with PayPal, which has the highest security standards in the industry.
Support
Your personal Franchise Business Advisor will be with you every step of the way. From training to fulfillment best practices, our team is here to help you grow your online business.
Technology
Through our state-of-the-art e-commerce platform, HobbyTown.com is a comprehensive solution that enables our business owners to deliver a strong customer shopping experience. Your virtual inventory is linked to your store, with web browser compatibility and load based transferring, so customers can shop thousands of products and are never turned away.
Database Management Department
Services: The Short List
Weekly Product Updates
Each week we create a new product update available to be downloaded by you. This collateral allows you to update your point-of- sale with new products as well as update pricing and availability on existing items.
Core File Comparison
Each quarter we create a core inventory comparison file available to be downloaded. This file allows every owner to compare their inventory against the opening inventory for an average size store.
Regional Best Sellers
Each quarter we create regional product best seller files available to be downloaded. This file allows every franchisee to compare their inventory against the best selling inventory in their region, providing you with specific products to consider adding to your store.
National Sales in SMART
Each month we compile national POS sales data submitted by all of our franchise stores. This data is included with the weekly product updates so that it is made available to you on your SMART POS software. This allows you to see national sales for product in your POS, which is invaluable when making buying decision for your store.
Corporate Services
Services: The Short List
Commercial Leasing Services
We utilize a professional commercial leasing agent to assist you in identifying the best available retail site for your HobbyTown USA® franchise. In addition to site selection, our leasing agent will negotiate for the best possible lease terms and provide a review of the final lease document. Subject to availability, a current franchisee or home office team member can be onsite to assist in the site selection process.
Financing Options
We offer financing assistance by determining which available financing options are best suited for you based on your personal financial assets. We can provide assistance in preparing a business plan to present to potential lenders or help you navigate the complexities of SBA financing options.
Opening Orders & Invoices
We utilize a multitude and wide variety of suppliers to prepare for the opening of your HobbyTown USA® franchise store. Our services include placement of all orders and subsequent payment of all invoices related to and including the opening inventory, fixtures and POS systems.
Franchise Disclosure Document
You made it this far! Your next step will be to receive and review our Franchise Disclosure Document (FDD) and Franchise Agreement via email. This document assists you in making an educated decision on becoming a HobbyTown USA® franchise owner and outlines your rights and obligations under the Franchise Agreement. Following your confirmed receipt of the FDD and Franchise Agreement, Corporate Services will be happy to answer any questions you may have about these documents.
The original HobbyTown USA® story began in Lincoln, Nebraska, where the national headquarters remains today. Merlin Hayes, his wife Mary and Thom Walla began HobbyTown USA® with one hobby store in Lincoln. Hayes and Walla wanted to share their dream with other people who wanted to own their own hobby store. A corporation was formed in 1985. The next decade added nearly 100 stores, and the franchise network continues to grow.
Today, HobbyTown USA® is a nationally registered franchise, and the company is widely regarded as a leader in the retail hobby industry. HobbyTown USA® is the worlds largest hobby store. We are ranked annually in the Entrepreneur 500, and Success Magazine has listed HobbyTown USA® as one of their top 100 franchises. There are currently more than 160 HobbyTown USA® stores open or under development across the United States.
It is said, "Once the entrepreneur's dream becomes reality, the only real challenge left is to share the success with others." HobbyTown USA® has reached this pinnacle, and we are now sharing our success with other people.
HobbyTown USA® is unique, a business unlike the average hobby store. We pride ourselves on getting higher inventory turns than the average hobby store. Our dollar sales per square foot are among the highest in the country.
"The hobby industry has seen a lot of changes in the past 20 years. More train sets, scale model kits, slot car sets and radio control cars and planes are available now than ever before. Thrilling new hobby lines have emerged, like ready-to-run radio controlled vehicles, inspiring strategy games and backyard electric airplanes," said Thom Walla, President and Senior Partner. "But what has not changed is that our stores are all about customers being able to walk in and select a terrific hobby product that will offer hours of family enjoyment."
We are constantly testing new products to increase store sales. We grow through innovative ideas and exceptional marketing strategies. Our goal is to spot new entertainment products, and be the number one source before anyone else notices the potential. We are here for you when you need us. We enjoy every aspect of the hobby business. It's very rewarding to help people start a new business, and to see the pleasure our customers get from the wide variety of exciting merchandise HobbyTown USA® stores sell.
- Discuss market availability
- Discuss competition in the market
- Identify your goals
- Answer basic questions you may have
- Schedule a follow up call
- Grant you access to the exclusive content on the website
- Speak with Department Executives about services provided, including
- Franchise Services - David Gaines (VP of Franchise Services)
- Marketing - Mollie Cox (AVP of Marketing)
- Information Technology - Tim Van Ert (Sr. Vice President)
- Franchise Operations - Todd Anderson (VP of Operations)
- Corporate Services - Bill Graeve (VP of Finance)
- Receive Franchise Disclosure Document
- Schedule a Discovery Day at our headquarters in Lincoln, Nebraska
- Call current franchisees of your choice
- Experience a Discovery Day at our home office, including
- Signing of the franchise agreement
- Payment of franchise fee
- Begin the opening process!
| Range 1,500 sq ft - |
4,000 sq ft |
|
|---|---|---|
| Franchise Fee | $25,000 | $25,000 |
| Travel & Living Expenses While Training | Variable | Variable |
| Inventory | 75,000 | 150,000 |
| Fixtures | 15,000 | 30,000 |
| Flooring & Improvements | - | 30,000 |
| Shipping | 1000 | 4,500 |
| POS Hardware | 4,500 | 10,000 |
| Accounting Software | 100 | 500 |
| Signage | 3,000 | 8,000 |
| Other Equipment | 2,500 | 7,500 |
| Deposits | 7,500 | 15,000 |
| Initial Consulting | - | 500 |
| Initial Advertising | 5,000 | 10,000 |
| Supplies | 5,000 | 8,000 |
| Turn-Key Fee | 5,000 | 5,000 |
| Store Set-up Labor | 2,000 | 5,000 |
| Additional Funds | 9,400 | 20,000 |
| ESTIMATED TOTAL | $160,000 | $329,000 |
| Royalty Fee | 3% | 3% |
| POS Hardware | 1 system | 3 systems |
