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HobbyTown USA

HOBBYTOWN USA stores are full-line hobby stores, featuring trains, models, radio-controlled vehicles, games, collectible cards, gifts, accessories and much more! The HOBBYTOWN USA system provides store owners with a comprehensive package of systems and services to be competitive in the hobby and entertainment industries.

Franchisor Background

Year Established:

1985

Franchising Since:

1985

IFA Member

Operating Units:
Franchised Units:	160	100%
Company-Owned Units:	0	0%
	______	_____
Total Operating Units:	160	100%

Geographic Distribution:
U.S.:	119	100%	In 41 States
Canada:	0	0%	In 0 Canadian Provinces
International:	0	0%	In 0 Foreign Countries
	______	_____
Total:	119	100%

North America:
States/Provinces with the largest number of operating units:
Density	Units
1. California	14
2. Texas	10

Registered in Following Registration States:

California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:
Minimum Net Worth:	$150K
Cash Investment:	$60-80K
Total Investment:	$125-250K
Average Total Investment:	$188K

Fees:
Initial Franchise Fee:	$19.5K
Average Franchise Fee:	$20K
On-Going Royalty:	3-4%
Average Royalty:	4%
Advertising Fee:	NA

Average Number of Employees:

1-2 Full-time, 2-3 Part-time

Space Needs (in square footage):

3,000

Preferred Sites:

Strip Center, Regional Mall

Other Sites:

Encourage Conversions?

Yes

Earnings Claims Provided?

Listed in the SBA Registry?

Support and Training

International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	40
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct

Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified

On-Going Support:
Central Data Processing:	Included in Fees
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Included in Fees
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Included in Fees

Training:
1. Home Office	1 Week
2. On-Site	3 Weeks

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):

Financial Net Worth:	4
General Business Experience:	3
Specific Industry Experience:	2
Formal Education:	2
Psychological Profile:	2
Personal Interview(s):	5

Minority Representation

Units Owned by Minorities:
African-American:	N/A
Asian-American:	N/A
Hispanic:	N/A
Native American:	N/A
Other:	N/A
Specific Minority:	N/A

Terms of Contract

Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed, But Discouraged
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes

Expansion Plans

Projected New Units Over Next 12 months:

U.S.:	Yes, All United States
Canada:	Yes, All Canada
Overseas:	No

Franchisor Background

Year Established:

Franchising Since:

IFA Member

Operating Units:

Geographic Distribution:

North America: