FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for HOBBY TOWN USA HOBBY USA.
Based on 2024 FDD · 1 filing in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a HOBBY TOWN USA HOBBY USA franchise shows an estimated initial investment of $340K – $610K. Reported owner economics show $170K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $50K franchise fee · 6.8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
HOBBY TOWN USA HOBBY USA requires a total initial investment of $340K to $610K (midpoint approximately $475K), with an initial franchise fee of $50K. The ongoing fee burden is 6.8% (4.8% royalty plus 2% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
According to Item 19 of the 2024 FDD, the median revenue for HOBBY TOWN USA HOBBY USA locations is $1.3M. The implied franchisee EBITDA is approximately $170K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 35.8% with a payback period of approximately 2.8 years.
HOBBY TOWN USA HOBBY USA operates approximately 100 franchised units. However, the brand has been contracting with a 5.7% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2024 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
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