HobbyTown is a specialty retail franchise focused on hobby, toy, and collectible merchandise. The system has been experiencing contraction with unit count declining from 110 to 94 over three years. While the Item 19 shows strong average gross sales of $1.46M, the system opened only 2 units in 2024 while closing 8. The franchise requires a significant investment of $350K-$620K with mandatory minimum inventory of $150K. Territory protection is strong with 5-mile exclusive radius. The franchise agreement includes typical terms with 10-year initial term, 4.75% royalty, and 2% advertising fee. Financial performance data shows wide variation from $286K to $4.7M in gross sales.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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