A Comprehensive Guide to HobbyTown USA

Introduction

HobbyTown USA is a renowned American retail chain specializing in hobbies, collectibles, and toys. Founded in 1985 by Thom Walla, Merlin Hayes, and Mary Hayes, the company has grown to become the largest brick-and-mortar hobby retailer in the world. Here’s a detailed guide to help you understand what HobbyTown USA is all about.

History and Expansion

HobbyTown USA was established in Lincoln, Nebraska, and the first franchise store opened in 1986. Since then, the company has expanded significantly, with over 105 franchise stores located in 39 states across the United States as of 2023[1][4].

Product Offerings

HobbyTown stores offer a diverse range of products catering to various hobbies and interests. These include:

  • Radio Control Hobbies: RC cars, trucks, airplanes, and other radio-controlled vehicles.
  • Scale Models: Kits and accessories for model cars, airplanes, and other scale models.
  • Games: Board games, puzzles, and other recreational activities.
  • Toys: Educational toys, seasonal items like rockets and pinewood derby cars, and kites.
  • Model Railroad Items: Trains, tracks, and accessories for model railroading.
  • Paints and Tools: Art supplies, paints, and various tools for hobbyists.
  • Educational Items: Products designed to educate and engage children in science, technology, engineering, and mathematics (STEM)[1][4].

E-commerce and Additional Services

In addition to their physical stores, HobbyTown USA provides an e-commerce platform, allowing customers worldwide to purchase their products online. This online presence complements their brick-and-mortar stores, making their products accessible to a broader audience[1].

Partnership with RadioShack

In 2018, HobbyTown USA partnered with RadioShack to open “express stores” within HobbyTown locations. This partnership aimed to bring RadioShack back to suburban areas, with about 80 out of the 110 stores at the time agreeing to carry RadioShack products[1].

Acquisition by AMain Hobbies

As of July 2023, HobbyTown USA is set to be acquired by AMain Hobbies, an online retailer. This acquisition includes the Lincoln, Nebraska headquarters and distribution center, expanding AMain Hobbies’ distribution capabilities across the United States[1].

Financial and Franchise Information

For those interested in opening a HobbyTown franchise, here are some key financial details:

  • Total Investment: The total investment required to open a HobbyTown franchise ranges from $323,000 to $588,000.
  • Ongoing Fees: Franchisees pay a royalty fee of 4.75% of gross sales and contribute 2% of their gross sales toward marketing.
  • Financial Requirements: Applicants must have a minimum net worth of $500,000 and liquid assets between $150,000 and $200,000[4].

Conclusion

HobbyTown USA is a vibrant and diverse retail chain that has been a cornerstone for hobby enthusiasts for over three decades. Here are the most important facts about HobbyTown USA:

Key Facts About HobbyTown USA

  • Founding: Founded in 1985 by Thom Walla, Merlin Hayes, and Mary Hayes in Lincoln, Nebraska.
  • Number of Stores: Over 105 franchise stores in 39 states across the United States.
  • Product Range: Includes radio control hobbies, scale models, games, toys, model railroad items, paints, tools, and educational items.
  • E-commerce: Offers online shopping through their website.
  • Partnership: Partnered with RadioShack to open express stores within HobbyTown locations.
  • Acquisition: Set to be acquired by AMain Hobbies as of July 2023.
  • Franchise Requirements: Total investment between $323,000 and $588,000, with ongoing fees including a 4.75% royalty fee and 2% marketing contribution. Applicants need a minimum net worth of $500,000 and liquid assets between $150,000 and $200,000.
  • Headquarters: Located in Lincoln, Nebraska, which also serves as the central hub for franchise operations[1][4].