HobbyTownFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HobbyTown franchise requires a total initial investment of $350K – $620K, including a $50K franchise fee and an ongoing 4.8% royalty[2]. Per the 2025 FDD, average unit revenue was $1.5M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 15 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $350K – $620K
- 34th pct Retail
- Avg gross sales
- $1.5M
- 17th pct Retail
- Royalty
- 4.8%
- 6th pct Retail
- Units
- 94
- 26th pct Retail
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.0x in gross revenue, well above the typical 1.5-2.5x range.
Only 0.0% of 15 SBA loans charged off, well below the 16% franchise average.
Franchising since 1985. Systems this mature have refined operations and brand recognition.
The system contracted 6% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $350K – $620K including a $50K franchise fee, 4.8% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.3M), with an estimated 17% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 38/100. SBA loan charge-off rate of 0.0% across 15 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -11.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hobby Town Unlimited, Inc.
- Parent company
- AMain.com, Inc.
- CEO title
- President
- Robert Wilke
- Incorporated in
- NE
- HQ
- 2930 Ridge Line Road, Suite 201, Lincoln, NE 68516
- Auditor
- K Coe Isom, LLP
- Audited financials
- Franchisor revenue
- $17.5M
- vs $14.8M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
HobbyTown franchisees operate specialty retail stores selling hobby products (model trains, RC vehicles, drones, gaming miniatures, craft supplies, etc.). Day-to-day operations include inventory management, customer service, product demonstrations, community event hosting, and staff scheduling in a typically 2,000–3,500 sq ft storefront.
- CEO
- Robert Wilke
- Headquarters
- NE
- Founded
- 1985
- FDD year
- 2025
- States available
- 35
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Travel and Living Expenses While Training | $2K | $4K | |
| Inventory | $150K | $300K | |
| Retail Fixtures | $40K | $80K | |
| Activity Area Material | $2K | $5K | |
| Flooring, Painting, and Improvements | $17K | $32K | |
| Shipping | $3K | $8K | |
| Point of Sale Computer | $6K | $9K | |
| Exterior Sign(s) | $6K | $15K | |
| Low Voltage Network for Computer Information System, Security System and Credit Card Machines | $3K | $4K | |
| Other Equipment | $3K | $10K | |
| Real Property and Miscellaneous Including Rent, Security Deposit, Utilities, Insurance and Phone | $8K | $15K | |
| Initial Advertising | $30K | $30K | |
| Supplies | $4K | $7K | |
| Other Labor for Store Set-up | $4K | $8K | |
| Loan Fees/Interest | $0 | $5K | |
| Additional Funds (3 Months) | $23K | $40K | |
| Total initial investment | $350K | $620K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$120K
8.2% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $350K – $620K
- Better than avg vs category
- Liquid capital req'd
- $23K – $40K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 4.8%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.8%
- vs 9–13% typical
- Payback period
- 5.8 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.8% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $50K |
| Renewal fee | $0 |
| Total fee load | 6.8% of rev |
A 6.8% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.3M
- Avg p&l bottom line
- $84K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 17.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Profit and Loss
- Sample size
- 80 units
- vs category median 49
- Range (low → high)
- $286K→$4.7M
- Cohort dispersion (min → max)
- Quartile band
- N/A→$2.4M
- Bottom 25% → top 25%
- Transparency
- 10 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
vs Retail averages
How HobbyTown Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 94
- Opened
- 2
- Last reporting year
- Closed
- 8
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -6.0%
- Net unit change last year
- 3-yr CAGR
- -11.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- Transfer rate
- 5.3%
- Owners selling to other franchisees
- Ceased ops
- 8.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 35 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $5.1M
- Median loan
- $260K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HobbyTown's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 12 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 15 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
HobbyTown presents cautionary-to-high risk due to contracting unit base, negligible franchisee profitability, lack of earnings disclosure, and headwinds in hobby retail—suitable only for operators with deep category expertise and strong local market positioning.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · K Coe Isom, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 38 / 100 rating
- 01MINORUnit count declining 6.0% YoY (94 units) indicates system contraction and potential market saturation or performance issues
- 02MINORNet income of only $84,160 on $1.46M average revenue (5.8% net margin) is extremely thin after accounting for 4.75% royalties, rent, labor, and inventory
- 03MEDNo Item 19 (financial performance representations) disclosed — franchisor provides no validated earnings data, making ROI projections unreliable
- 04MINORHigh initial investment range ($350K–$620K) paired with thin margins creates extended breakeven period and elevated risk of underperformance
- 05MINORHobby retail sector faces structural headwinds from e-commerce competition and shifting consumer spending toward experiences
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Nebraska |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 131 hrs
- Training location
- Corporate office in Lincoln, NE and franchised retail stores
- Field support
- 131 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- POS system
- SmartSuite
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SmartSuite
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HobbyTown · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HobbyTown franchise?
The total investment to open a HobbyTown franchise ranges from $350K – $620K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HobbyTown franchise owners earn?
According to Item 19 of the HobbyTown FDD, the average gross sales per unit is $1.5M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is HobbyTown's franchise failure rate?
Based on SBA 7(a) loan data, HobbyTown has a charge-off rate of 0.0% across 15 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many HobbyTown franchise locations are there?
As of their most recent FDD filing, HobbyTown has 94 total units in the United States, including 94 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is HobbyTown a good franchise to buy?
FranchiseVerdict rates HobbyTown as a A-grade franchise with a risk score of 38 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.