HobbyTown
HobbyTown Unlimited Inc.
Company Information
1133 Libra Drive Lincoln, NE 68512
Hobby Town Unlimited, Inc. is a Nebraska corporation formed in 1985 by Merlin P. Hayes and Thomas A. Walla. Mr. Hayes and Mr. Walla owned 100% of the Company from 1985 to 1998. In February 1998, Mr. Hayes and Mr. Walla sold approximately 45% of the Company to eight employees, and since then, additional employees have purchased stock. The Company’s principal place of business is 1133 Libra Drive, Lincoln, Nebraska 68512. The Company was formed for the purpose of selling franchises and began offering franchises in September 1985.
Other than the business ventures described in this Item, neither the Company nor its affiliated companies have offered for sale or currently intend to offer for sale franchises in any other line of business; except that the Company formerly owned a controlling interest in n?Vibe Unlimited, LLC, a Nebraska limited liability company that sold one franchise for a specialty juice and coffee concept. In addition, the Company has entered into an agreement with Amain.com, Inc. of Chico, California (“AMain”) to enable the Company to offer franchises, under a separate franchise agreement and franchise disclosure document, for the operation of AMain Performance Hobbies locations. These locations will sell primarily remote control products and associated parts and accessories, and may have tracks for the racing of remote control products. Your competitors include other hobby merchandise stores. The Company is unaware of any special regulations governing the retail sales of hobby merchandise in Your state.
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Franchise Rating
Franchimp Summary Rating
5/10
Earning Transparency
7/10
Investment Accessibility
2/10
Summary of potential earnings
$1,628,302 / unit
Average Revenue During 2021Retail Stores
Franchise System Development
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Distribution of HobbyTown Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $281,100 Maximum: $492,500
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $340,000 Maximum: $610,000
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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