HobbyTown franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.17 ↗

Franchise fees and ongoing costs

Franchise fee

$49,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

4.75% · 4.75% of gross sales, paid monthly by the 10th of the following month

Marketing contribution

Not captured

Technology fee

Security software $150-$250 annually (depends on number of computers)

Other fees

Warehouse shipments handling fee averaging 2%-20% of merchandise sales price; Additional Assistance variable per-day fee; Physical inventory count $275/day (when ordered)

Working capital (FDD Item 7)

Additional Funds (3 Months): $23,000-$40,000, as incurred (working capital for incidental expenses in first three months of operation)

Fees sourceFDD p.13 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.17 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average, median, high and low gross revenue plus adjusted expenses and adjusted operating income (with quartile tables by adjusted operating income) for reporting franchised stores

Reporting period

2025 calendar year (Jan 1 - Dec 31, 2025)

Sample

67 reporting franchised stores out of 85 open the entire year (18 open all year did not report complete data; 27 of the 67 are owned by multi-unit franchisees)

Reported average

$1,627,084

Reported median

$1,442,141

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.45 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

94

Year-end outlets

85

Net change

-9

Derivation

ending minus starting outlets

Openings

1

Terminations

2

Non-renewals

0

Other closures

7

Reacquisitions

1

Transfers

0

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.53 ↗

SBA loan history

Loan activity

16 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$203,500

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

6 loans

Historical charge-off share

13.04%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

3 / 23

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does HobbyTown franchise cost?

Single unit: $327,100 to $458,000; Multi-unit (minimum 2 outlets): $369,100 to $500,000 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $49,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.17 ↗

Franchise fee sourceFDD · page not captured ↗

How much do HobbyTown owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average, median, high and low gross revenue plus adjusted expenses and adjusted operating income (with quartile tables by adjusted operating income) for reporting franchised stores. Sample: 67 reporting franchised stores out of 85 open the entire year (18 open all year did not report complete data; 27 of the 67 are owned by multi-unit franchisees). Period: 2025 calendar year (Jan 1 - Dec 31, 2025).

Item 19 performance sourceFDD p.45 ↗

What's the SBA charge-off rate for HobbyTown?

13.04%; numerator / denominator: 3 / 23. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $203,500; window: FY2023-FY2026 YTD through 2026-06-30; sample: 6 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗