Business Description

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:  1969

Franchising Since:  1986

Operating Units:
Franchised Units:	162	98.8%
Company-Owned Units:	2	1.2%
Total Operating Units:	164	100.0%
Geographic Distribution: U.S.: 164 100% In 41 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 164 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Texas	10
2. California	14

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:	$60-100K
Total Investment:	$150-500K
Average Total Investment:	$325K
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?: No

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
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
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
Expansion Plans
Projected New Units Over Next 12 months: 30 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: No	Request Franchisor Info   Submit an online form to receive information from HobbyTown USA.