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 over 160 HobbyTown USA® stores open or under development across the United States.
It is said that "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 for little investment."
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.
We spent a day following Stacia and Chris, owners of a HobbyTown USA® franchise in Idaho Falls, Idaho. Their store has been voted one of the best stores in the United States, and after following them on a typical day, we understand why.
They took us through their day-to day-operations and explained what they’ve done to really make their store their own, as well as what things they do to ensure the store runs as smoothly as possible.
Click here to watch the “Day in the Life” video to catch a glimpse of what it’s like to own a HobbyTown USA® franchise.
HobbyTown USA® provides a marketing program for all franchise locations. The marketing department creates yearly materials and collateral and releases the campaigns at the beginning of each quarter. Each franchisee is provided an account for our online marketing library with full e-commerce capabilities. Franchisees browse each quarter’s materials and may purchase customized campaigns that will be delivered right to the store. As HobbyTown USA® has stores all across the nation, we have a printing partnership that will get you the best prices on all materials. We also provide media buying support and national placement for each franchise based upon their customized marketing plans.
HobbyTown USA® also invests heavily in state-of-the-art technology platforms that help each franchisee reach markets that might not have been possible otherwise. We have a full online e-commerce platform that is supported by the Home Office Web Development team, a proprietary social networking platform, and social media staff that will help you create an executable monthly plan for your store.
To learn more about the marketing support provided by HobbyTown USA®, contact us.
One of the best ways to drive traffic into your store is by hosting hobby events. From gaming tournaments to model contests, events are instrumental in increasing sales and helping your customers grow their passion for hobbies.
Some of the potential events include:
National Model Contest - This event is offered twice a year, once in the spring and once in the fall, and generally has the highest participation year around. HobbyTown USA® offers an array of categories in which participants are allowed to enter their models. The winners from each store are judged in order to receive the "National Model Contest" winning title and other awards and prizes.
Build 'N Blast - This event is a family event hosted by HobbyTown USA® that allows children to receive free beginner rocket building kits and assemble them in-store. Depending on your store location, on-site blast off may be available.
National Make and Take - This annual event is sponsored by the leader in replica plastic kits, Revell. Children will receive free model kits while the in-store instructors take them through the whole model-building process. This event is much like the Build 'N Blast event, and is a great opportunity to get the whole family into your store.
Birthday Parties - Hosting birthday parties is a great opportunity for your store to increase sales. With the abundance of themes available, your store will be able to uniquely cater to children of all ages and interests. Our franchisees host parties that include the following: Slot Cars, Arts & Crafts Party, Rocket Party, Science Party, and 4WD Parties.
Timeline for prospects
- First, you’ll submit an Ownership Application.
- Within one business day, we’ll call you to:
- 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
- Over the next 2-3 weeks, you’ll have the opportunity to:
- 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 the Franchise Disclosure Document
- Schedule a Discovery Day at our headquarters in Lincoln, Nebraska
- Speak with Department Executives about services provided, including:
- Then, during the following 2-3 weeks, you can:
- 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!
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 because of our buying power. We have trained staff to assist you with questions you may have from product questions to business 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. 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. First, you will work and train for at least one week at one of our locations. Then you will come to the home office for a week of business training. Phase three consists of onsite training lasting almost three weeks at your store, which takes place during the opening.
Does HobbyTown USA® offer Marketing and Advertising support?
We offer a comprehensive turn-key marketing program including media buying, graphic design, individual marketing plans and budget assistance. Our marketing department produces professional print, web and broadcast materials that will effectively market your store.
Is my market large enough for a HobbyTown USA®?
We typically like to see a population of 100,000 in a 10-miles radius to ensure a good base of customers. If you are unsure of your population base please contact us.
How do I know what inventory to carry in my store?
We select your opening inventory based on the nationally best selling items. We have found that this is the best way to ensure that the vast majority of the product you carry in the store will sell and will sell quickly many times.
What is the best time to open a HobbyTown USA®?
Today is the best time. Anytime is great, although we do not recommend opening between Thanksgiving and Christmas due to difficulties in learning the nuances of running the store and training staff during the busy holiday season.
Is it possible to have a manager run my HobbyTown USA® franchise?
We highly encourage that our storeowners work in the store for the first few years of the franchise’s development. Most stores will achieve higher ROI by having the owner in the store full-time.
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.
Does HobbyTown USA® ® offer location assistance?
We offer site selection support and lease negotiation assistance.
What is the cost to open a HobbyTown USA® franchise?
The overall cost to open a HobbyTown USA® ranges from $160,000-$329,000. The cost to open your store is dependent upon how large of a store you desire.
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. This can fluctuate depending upon how long the location build-out requires.
Do you offer financing assistance?
After the franchise agreement is signed and the franchise fee is paid, we can provide business plan assistance for a small fee.
What is the franchise fee?
The franchise fee is only $25,000. The term of the agreement is 10 years, with a 10-year renewal option.
What is the royalty fee?
We offer one of the lowest royalty fees in franchising. It is only 3% of gross sales.
What do lenders require?
Lenders will require a minimum net worth of approximately $200,000 and the ability to inject at least 30% of the total franchise investment.
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 contact us at 800-858-7370 or fill out this form (hyperlink application) to start the process today!
We provide extensive franchise services from initial planning to ongoing training. To receive more information, please contact us.
| 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 |
HobbyTown USA® provides the SMART Suite of programs for all franchise locations. The SMART POS and Ordering program has been developed in-house since 2003, and since then has surpassed 2 million hours of operational retail use in HobbyTown USA® stores. SMART is used to process sales, to create, send and receive product orders from vendors, to track and report on sales and purchase activity, and to effectively manage your product inventory and pricing, all using methods custom-fit to the HobbyTown USA system.
The SMART Suite also includes software to assist with data backups, system maintenance, web-communication with the home office and e-commerce sites, and regular software upgrades. Our software development department is able to respond to our franchisees specific needs in an ever-changing retail marketplace. New software versions are available 3-5 times a year for no additional fee. Individual requests are always considered, and are often implemented and made available to the benefit of all store owners.
HTUSA-IT will obtain and configure all of your computer systems, and ship them to your store ready to plug in and start making sales. Ongoing support of your software operations is provided by all departments at HTUSA, and IT can help you maintain and upgrade or replace your equipment over the years to stay efficient and take advantage of current technology trends. After hours and on weekends, IT support can be reached via a 1-800 service to help you resolve the problem as quickly as possible when your sales systems are “down”.
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.
Nichole Ernst
Associate Vice President of Franchise Opportunities
Email: nichole@hobbytown.com
Phone: (800) 858-7370
Fax: (402) 434-5078
Address:
National Franchise Headquarters
1233 Libra Dr
Lincoln, NE 68512
Request More Information
R/C Land
Radio Control cars, Trucks and Boats have been the most popular category of Hobbies for the last decade and rightly so. They are fast, exciting, fun and customizable, which appeals to the entire family.
R/C Air
R/C Air consists of anything that leaves the ground, with the largest groups being planes, helicopters, and gliders. They all come in electric, Nitro and gas versions, with electric being the most popular. The R/C air industry has made huge advances with technology over the past few years so anyone, no matter their experience level, is able to operate R/C Air vehicles.
Games
Games are one of the oldest hobbies. They range from the simple and easy to the mind-challenging and role-playing. Man has always had the need for something to fill in the leisure time, and games have always been there. Historically, games have been of two different types: chance or skill. But now many games combine both chance and skill to offer more variety.
Science & Education
Our science and education section contains a number of different items. Our educational toys are mainly focused on entry-level to intermediate science kits and merchandise, while maintaining the ability to expand into hobbyist and commercial grade products as the market develops. Many markets have potential for significant category growth due to the deficiency of full-service science and educational stores in their market.
Slot cars also make up a big portion of our science and education inventory. They are powered miniature autos or other vehicles that are guided by a groove or slot in the track on which it runs. There are several uses for slot cars, anything from modeling a scenic highway to competitive racing, which has become very popular throughout the years.
The science and education section continues to develop into a very lucrative niche market for our stores. We focus on high margin, non-disposable products that have some kind of function or value to adults as well as children.
Models
The construction of scale models is one of the timeless hobbies. Models create a never-ending fascination by offering an ever expanding range of choices in subject matter, scale, medium and price. Besides the kits themselves, there are many products now available as accessories for the modeler, such as reference material, detail kits, paints, tools, decals and periodical publications.
Paints and Tools
Paints and tools are essential elements in that they hold many other hobbies together. They are more than “after-market” inventory items. They are important to the creative success of all the hobbies we carry. The products in this category reach more customers than any other category.
Railroad
Model railroading is one of the most popular of the model hobbies. Fascination with trains goes back many years, but interest in model railroads found a larger audience with the advent of the electric train set around the turn of the century. Long before plastic models, leisure games and radio control, there was model railroading -- a hobby still going strong.
HobbyTown USA® franchisees benefit from proprietary services provided by our corporate headquarters. We offer assistance in a number of areas, including:
- Corporate Services
- Database Management Department
- E-commerce Department
- Franchise Services
- Marketing Department
- Operations Department
- POS Software & Information Technology
To receive more information regarding this exclusive content, please complete our application.
