Key Numbers
94
Total units open
2
Units opened last year
8
Units closed last year
-6
Net unit growth
HobbyTown Franchise
Franchised by Hobby Town Unlimited, Inc. · FDD 2026
Retail FDD 2026 Founded 1985 · 41+ yrs Item 19 disclosed
Data extracted from Hobby Town Unlimited, Inc.'s 2026 Franchise Disclosure Document, filed under FTC Rule 16 CFR 436. How we analyze FDDs →
Initial investment
$327K - $458K
Franchise fee
$50K
Median unit revenue
$1.44M
System size
85
The Verdict
Quick Verdict · who it fits
HobbyTown fits first-time franchise buyers looking for a mid-scale retail concept.
✓ Strengths
- ✓No disclosed Item 3 litigation
- ✓Grants exclusive territory protection
- ✓41 years in business — established brand
⚠ Risks to review
- ⚠No Item 19 disclosure — buyers fly blind on revenue
- ⚠High closure ratio: 10.6% of system per year
Key FDD Facts
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$327K - $458K
Franchise fee (Item 5)
$50K
Royalty (Item 6)
4.75% + 2% ad
Item 19 median rev
$1.44M all reporting franchised stores
System size (Item 20)
85
Years in business
41+ yrs
Training (Item 11)
147 days
Item 3 litigation
None disclosed
Model HobbyTown's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
What you'd pay the franchisor
Drag to your projected annual sales. Royalty 4.75% + ad fund 2% on gross sales.
PROJECTED ANNUAL SALES$1,440,000
$100k$2.6M
Royalty (4.75%)
—
Ad fund (2%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
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What's inside
Franchise Overview
Costs & Fees Breakdown
Your Obligations
Franchisor Obligations
Financial Statements
Contracts Summary
Unit Economics
Network Health
Litigation Risk
Earnings Analysis
Financial Fit Analysis
Buyer Verdict
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Research, not legal advice. Use this report alongside professional legal and financial review before signing any franchise agreement.
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Competitive intelligence for franchisors →Executive Summary
Free AI summary — the first read on the filing.
AI Due Diligence Findings PREMIUM
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
Industry Benchmarks
How HobbyTown ranks against 118 Retail peers we've analyzed.
Initial investment
78th pct · of 118 peers
Franchise fee
66th pct · of 118 peers
System size
50th pct · of 118 peers
Retail industry averages
Avg investment
$247K - $707K
Avg franchise fee
$37K
Avg system size
238
Franchises analyzed
118
How HobbyTown stacks up
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| HobbyTown | Disclosed | $50K | $327K - $458K | 4.75% | 85 |
| Winmark Similar price | None | $25K | $343K - $457K | 5% | 302 |
| 7-Eleven Biggest system | Disclosed | — | $163K - $1.7M | 45–56% | 7,229 |
| Byrider Franchising Partners Top-rated in category | Disclosed | $60K | $947K - $1.6M | 1–2.5% | 81 |
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Frequently asked questions
How much does a HobbyTown franchise cost?
HobbyTown requires a $49,500 initial franchise fee and a total initial investment range of $327,100–$458,000, per the most recent FDD on file.
Who owns HobbyTown?
HobbyTown is franchised by Hobby Town Unlimited, Inc., the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Does HobbyTown disclose financial performance (Item 19)?
No. HobbyTown does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
What ongoing fees does HobbyTown charge?
Franchisees pay a royalty of 4.75% and an advertising fund contribution of 2% on gross sales as defined in Item 6 of the FDD.
How many HobbyTown locations are there?
As of their 2026 FDD, HobbyTown has 85 total locations. This information comes from Item 20 of the FDD.
Does HobbyTown offer franchisee training and support?
Yes. HobbyTown's most recent FDD documents approximately 147 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.
Does HobbyTown grant exclusive territory?
Yes. HobbyTown grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.
What are the renewal and exit terms?
Per the FDD, HobbyTown discloses a transfer fee of $49,500. Review Items 10 and 17 for the full renewal and termination provisions.
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