|
HobbyTown Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a HobbyTown Franchise?
To open a HobbyTown franchise, you will need an initial investment ranging from $340,000 to $610,000. This includes a franchise fee of $49,500. Additionally, you should have liquid cash available between $150,000 and $300,000, along with a net worth of $250,000 to $500,000. These financial prerequisites ensure that franchisees are well-prepared to manage the operational costs and initial setup of their stores.
What Are the Ongoing Fees Associated with a HobbyTown Franchise?
HobbyTown franchisees are required to pay a royalty fee of 4.75% on their gross sales, along with a marketing fee of 2%. These fees contribute to the overall brand marketing initiatives and support provided by the franchisor. It's essential to factor these ongoing costs into your financial planning to ensure the sustainability and profitability of your franchise location.
What Is the Average Revenue Potential for a HobbyTown Franchise?
HobbyTown franchises have demonstrated strong revenue potential, with an average annual revenue of approximately $1,455,633 per unit. The median revenue stands at $1,282,737, while the lowest reported annual revenue is $285,736, and the highest can reach up to $4,699,159. This range indicates that, with effective management and marketing strategies, franchisees can achieve significant financial success.
How Quickly Can You Expect to Break Even with a HobbyTown Franchise?
Franchisees can expect to reach their breakeven point within 12 months of operation. This rapid payback period is an attractive feature for potential investors, as it reflects the brand's strong market presence and customer demand. With diligent management and a focus on sales, new franchisees can quickly recoup their initial investments and begin generating profits.
HobbyTown Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
Industry ⓘ
Category ⓘ
Funding Year ⓘ
Parent Company ⓘ
Leadership ⓘ
Corporate Address ⓘ
Initial Investment ⓘ
Franchise Fee ⓘ
Royalty Fee ⓘ
Marketing Fee ⓘ
Cash Required ⓘ
Net Worth Required ⓘ
Average Revenue ⓘ
Median Revenue ⓘ
Lowest Revenue ⓘ
Highest Revenue ⓘ
Breakeven Time ⓘ
Investment Payback ⓘ
HobbyTown Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
Total Units ⓘ
Franchised Units ⓘ
Corporate Units ⓘ
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 110 | 106 | 100 |
| Net Change YoY | -4 | -6 | |
| Franchised Units | 110 | 106 | 100 |
| Net Change YoY | -4 | -6 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Company Background
HobbyTown is a leading retail franchise specializing in hobby and toy products, catering to enthusiasts of all ages. Founded with a passion for fostering creativity and play, HobbyTown has built a strong community presence since its inception. The franchise offers a wide range of products, including model kits, remote-controlled vehicles, board games, and educational toys, making it a go-to destination for hobbyists and families alike.
Franchise Opportunity
Investing in a HobbyTown franchise presents a unique opportunity for aspiring entrepreneurs to tap into the growing hobby and toy market. With a low initial investment ranging from $340,000 to $610,000 and a franchise fee of $49,500, HobbyTown provides a solid business model backed by a recognized brand. Franchisees benefit from comprehensive training and ongoing support, ensuring they have the resources needed to succeed.
Financial Performance
HobbyTown franchises demonstrate strong financial performance, with average annual revenue per unit reported at $1,455,633. The median annual revenue stands at $1,282,737, showcasing the potential for profitability. The breakeven point is achieved within 12 months, allowing franchisees to recoup their initial investment quickly. With a royalty fee of 4.75% and a marketing fee of 2%, franchisees can effectively manage their operational costs while focusing on growth.
Required Investment
To become a HobbyTown franchisee, candidates must meet specific financial criteria. A cash requirement between $150,000 and $300,000 is necessary, along with a net worth of $250,000 to $500,000. These requirements ensure that franchisees are financially prepared to invest in their business and sustain operations during the initial growth phase.
Operational Support
HobbyTown provides robust operational support to its franchisees, including comprehensive training programs that cover all aspects of running a successful store. Franchisees receive ongoing assistance with inventory management, marketing strategies, and customer service best practices. This support network helps franchise owners navigate challenges and capitalize on opportunities in the competitive retail landscape.
Brand Community
HobbyTown prides itself on fostering a strong community among its franchisees and customers. The brand encourages local engagement through events, workshops, and hobby-related activities, creating a loyal customer base. By promoting a culture of creativity and collaboration, HobbyTown not only enhances customer experiences but also strengthens the franchise network, driving mutual success across all locations.
Frequently Asked Questions
The initial investment for a HobbyTown franchise ranges from $340,000 to $610,000, which includes the franchise fee and other startup costs.