Capt. Rich

im concidering a hobbytown usa franchise in my area. are there any owners out there with a heads up on this company and how they work with their franchise owners.

SAVAGEJIM

I just tried to look it up, and unfortunately, there is no info on what are the min requirements, etc. The only way to find out is to e-mail them

http://www.hobbytown.com/Franchise/

I do think there are certain min ordering and stocking requirements: For example, based on region, you might have to sock so many thousands of dollars on Traxxas parts and products for example, or in another region that is HPI biased, you would have to stock so many thousands of dollars of HPI products. Also, based on region, there might be certain distributor stipulations as well. You might have to only work with Joe Bloe distributor, for example, but are prohibited from using Jane Doe distributor (even though Jane Doe is much much closer and get the products to you much more quickly).

I have no idea about these details, these are only guesses as to what the restrictions and conditions might apply to you to enter the franchise contract. When you e-mail them, ask EVERYTHING: How much must you sell, how much must you order each month, what are the products you must stock up on in-store, minimum store insurance requirements, required training for managers and employees, what benefits the employees must have to be part fo teh franchise, etc.

lordraptor1

My Feedback: (4)

i once got teh package with all of the info but that is as far as i ever got (never could get the funds to go through with it), basically you need a minimum investment of 10k (that if it hasn't changed and that is for putting it in a strip mall), a city and state sales tax licsence, a business listed phone. they help with lease negotiations and stock teh store the first month leaving you just to reorder stock you sell and (assuming you want to carry something specific order it), also i belive it said you needed to carry a certain number of hobby products that they sale (you cannot just go into it doing nothing but r/c stuff, you would also have to carry stuff like model kits, trains, etc).

airbornrc

My Feedback: (9)

You might also look at Remote Control Hobbies. I have a close friend that opened one last spring and it has been very possitive. Just another option.

Mark

minifaron

My Feedback: (1)

I am thinking about opening a RC Hobby Shop myself, how is this going for you?

IGOTSKILLZII

+1 They have taken all the hobby shops in my area away and I'm thinking of opening one up myself I think it would make a killing since there are alot of ppl still into the Hobby and the closest Hobby shop is like an hour + away.
Ireceived some info aboutHobbytown Franchise by request. They told me the minimum and the requirements needed though they will provide any training and products. Sweet idea I really want to make this happen!

AMOUREDTANK

As a buyer I personally think you'd be better off with your own shop. Hobbytown is too biased towards Traxxas in my area. If you really want to make a successful business you should have a much wider variety of RCs then hobbytown offers. Just my opinion though. I would rather drive passed my hobbytown wich is 45 min away and drive another 20 min further to the LHS. Better variety, more knowledgeable. Just a far better experience overall.

jjglennon

+1 They have taken all the hobby shops in my area away and I'm thinking of opening one up myself I think it would make a killing [/quote]


You won't make a killing. I promise.
John

dude7422

jj i talked to a htusa co owner in mentor ohio and you have to stock what they want you to stock..
no real controll over what you stock in the store your more of a manager.. this was 5 years ago things change

bbuzzard

My Feedback: (5)

Wow, that sucks...[]

matthew__ruane

The HT by my house in AZ (not where I am most of the year) also seems to be biased towards Traxxas, but they usually have stuff for my 18T in stock.

Up on the counter they have I believe an S-Maxx, Revo, and the 1/16 Slash and Revo. Behind the counter almost everything says Traxxas, stacked up behind the counter are Rustlers, Maxxes, etc.

Theres a Quick's RC about the same distance away that I MUCH prefer, but my dad never takes me there. They have a huge selection of stuff, and the people there are much more educated about RC stuff.

Contrary to what people usually say about Hobby People, the people working at the one by where I am most of the year are friendly, helpful, and educated.

So yeah if you open a Hobbytown get less Traxxas stuff

ramcfarland

My Feedback: (44)

IGOTSKILLZII The HobbyTown in Fredrick is very nice but is an an hours drive from the growing Waldorf / Southern Maryland area.

Back in the day I managed the "Radio Control Department "at Corr's Inc. once long time located at 813 9Th. St N.W Washington D.C. Being located in the Nations Capital...$$$$$$flowed and I was able to have at least ONE of most every thing in stock and I was indeed receptive and responsive to the customers needs: from Model Ship fittings to Radio Control Well IGOTSKILLZII If you go for it as in a Hobby Town franscise ,you might want to contact me perhaps I could be of service . feel free to PM

PLANE JIM

My Feedback: (109)

the one in The Woodlands Texas lasted about two years -I do not know why? I doubt if it they were making too much money, freestanding building in a nice retail center.

carguy1440

I would encourage anybody interested in opening a LHS to contact our franchise sales department via the link on our website. I work in the Franchise Services department at the home office and can tell you we offer great value and support to the entrepreneur.
[email protected]

RC-Ken

My Feedback: (29)

Anybody in interested in opening a Remote Control Hobbies focused store, check out www.rc-hobbies.com . Great new franchise with a new innovative style focoused on the RC enthusiasts. Currently operating 11 stores across 7 states and has a great track record. Or you can e-mail [email protected] .

trevoryoung00

My Feedback: (15)

Here are my $0.02 for what they are worth.........

There is a reason you see more hobby shops closing and going away in your communities. Yes the competition is thinning and could be an open door, but the primary reason is that the majority of hobby expenditures are now done online and with the consumer being ultra educated with pricing, the local hobby shop cannot compete with Tower Hobbies.

The majority of Hobby Shops across the country including Hobbytown USA's main product suppliers are Great Planes (aka: TowerHobbies) and Horizon Hobby (aka Hanger9/JR/Saito) When your wholesalers/distributors are competing with you and your product costs are virtually the same as online consumer pricing, there is not much margin available for the local hobby shop. You have to sell a whole lot of glue and monokote and tires in order to pay for overhead, staffing, and the costs of operating a business.

I am all for supporting the local hobby shops because i want them to be there when i need to run down and grab a roll of monokote on a sunday afternoon, but when i am shopping for a new plane or engine, I will save the $30 bucks and order online like the most of us.

Hopefully I didnt destroy anyone's life long dream of being a hobby shop owner, but it is to some extent a dieing breed. I worked at a HT usa through college and prior to that worked at a local non-branded hobby shop/toy store. Lets just say the HT usa is now out of business and the other owner barely makes a liveable wage. If you are retired and bored, this is a great way to help others get into the hobby and be around the hobby we love, but if you are trying to make a living and raise a family or get rich, go another route. I am now a business consultant and work with many startup companies and own a commercial leasing business as well. My advice is to spend your energy on manufacturing or redeveloping rc technology and becoming the supplier to TowerHobbies/Horizon, ect. That is where the money is being made.

w0mbat

My Feedback: (1)

Having been involved in both ends of the hobby industry (mfg and retail) I can tell you that operating a hobby shop is 1000% better than being on the mfg end. As long as you follow the basic common sense rules:
1. Don't get in over your head by taking out big loans. You better have a min of $200,000 in the bank before you even consider opening a shop and being sucessful long term.
2. Have a business plan but don't be afraid to change with the market or expand into other areas related to the hobby.
3. Get set up with smaller manufacturers or import your own products for the best profit margin. Concetrate on impulse items and carry a huge selection of high profit parts such as Dubro. Most importantly, match online pricing.
4. Know everything there is to know about the hobby and the products you sell because you will have to service just about everything that you sell at one point or another.
5. Enjoy being around people and enjoy your work but realize that owning a hobby shop is 75% business administration, 24.9% educating and entertainment of customers and .1% hobby fun!
6. Learn accounting, marketing, computers, websites, etc so you don't have to pay others to do it for you.

If you follow those rules, you can make very good money in the retail hobby business. If you start out with only 20k, order everything from Great Planes/Horizon because it is convenient and have nothing in stock, the likelyhood of failure is great. If someone told me they had less than 100k in the bank and wanted to open a hobby shop, my advice to them would be to open an online investment account and randomly pick stocks instead - chances are the return would be much better!

rambler53

My Feedback: (494)

I agree! Hobbytown in my area is too biased on EP, you can only find Two glow engines in the display case, a .46LA and 46AX, that's it!
Lots of Eflite, puzzles, stuffed animals, trains, paintball, and other toys. For the glow hobby, you have to drive to Sebastian (30 miles away).

pilott28

My Feedback: (27)

I own a couple of HT USA franchises. Actually, I am the financing and my son runs the businesses.

Some of what is posted here is not correct. My experience with them so far has been positive. As franchises go, they are relatively flexible and have some pretty good tools to get the business going.

JasonS

I have been to a variety of Hobbytown Franchises and they can vary from the basic low inventory average price variety all the way to the amazing Hobbyplex in Omaha.

I am sure much of it has to do with the person running the business and the commitment ($$$) they put into it. You have to spend money to make money.

If you want to see a dream all-around Hobbytown Franchise check out the Omaha Irvington location. While its not the most diversely stocked store from an airplane standpoint it has most of what the average modeler wants at very good prices. Just about everything you would want except specialized gasser or pattern stuff. And I am sure they would get it for you at competitive prices if you asked.

From an RC car standpoint its one of the best in the nation. I am very glad to have it here. I probably drop $100 a month there on average. (wink - its more) Modelers are more than happy to support the local Hobby store if the prices are right and the stuff we want is in stock.

It also helps that the Hobbyplex is large enough to support on-site indoor flying and has a permanent indoor electric track and a large outdoor off road track as well. If only it had a flying field attached, I would live there. It's like an RC country club . They should charge a cover charge.

Here are some videos of the track:
http://www.youtube.com/user/ZenRacing

rambler53

My Feedback: (494)

if that track is at Hobbytown, no wonder you like the place. But it's a fluke, not the norm. Commute from FL to NE isn't cost effective for me.

JasonS

Sure, its a fluke.

However, its an example of what CAN be done as a Hobbytown Franchise with the right investment.

Also an example of what it takes to compete in an online world.

Online can't offer facilities. Online can't offer a real gathering place.

I am sure most ppl. that dream of having a hobbystore don't have the resources of the shop in Omaha. With poor inventory and basic facilities it will be very hard to compete with online vendors.

That doesn't mean it can't be done, you just have to offer something online can't.

I am sure MANY small businesses suffer from small initial investments.

cfircav8r

My Feedback: (1)

On the down side Hobbytown USA has some requirements on what has to be ordered and maintained. On the other hand they enable you to take advantage of large chain discounts and buying power. You also get a known name to stand behind. They have ready made inventory tracking systems, and can help with many first timer questions. The biggest reason most don't do well is they either come into it as purely a business venture to make money, or as as a way to make a living doing what they love (the hobby) without the knowledge of how to run a business. It is a business and owning your own business is HARD. It is not a high profit business so you better love what you are doing. The hours are long and the return is small. If you enjoy the challenge of small business and can work well with the public (harder than it sounds) then this may be for you. Another thing to consider is not every area can support a hobby shop.

dakota7152

I owned a Hobbytown USA franchise for several years before we went to an online format. They area great outfit, but retail is HARD! You work long hours and won't turn a profit for a year if you are lucky. It really is a crapshoot on whether you will make it or not based a lot on your local market and your ability to run a retail store.Hardwork and good financingare only the antein thisgame as rents are high and you are always dealing with theft prevention and employee turnover. Suppliers and inventory requirements are notimportant.Hobbytown pretty much will accept whatever you do as long as you pay your fees and run a reputable store. The learning curve is very steep and while the training is good, the toughest day is when you are left on your own and you realize you have 15000 skus in your store and you are expected to knoweverything about every one, and keep up with the new stuff too. I think the biggest challenge to any shop is that product cycles are down to about 2 years, and old inventory is what kills stores. The internet sets the prices, but most hobbiests want theirstuff NOW, and that makes a market, although margins are much less than most retail. Ifyou sella Traxxas truck you are probably making 5%, or about $20 on a $400 sale, BEFOREyou pay thecredit card company. The money is all in the hop-ups, and you will have toreally know the market to make good buys, and be a good salesman tomove it.
What I have seen of Hobbytown USA isthat in spite of their best efforts, most stores come and go, with a few really doing well . Remember that if you aregoing allin financially. Don't open a shop if you want to stay in the hobby, as after a 65 hour week you are going to be doing paperwork, not playing. I'm not saying don't do it , in the long run it worked out for me, but I would advise spending a few months working in a hobby shop first. I wish I had.

flycatch

My Feedback: (26)

I live in an area that had two hobby shops within an hour drive of my home. The first shop closed due to illness of the owner. The second shop closed because they no longer had clienttell to buy there trains. Hobby People came in and filled the void followed by Hobby Town. Hobby Town failed and that leaves Hobby People. Of the four hobby shops only one catered to the airplane enthuasist. It also did the most business. In order for a hobby shop to succeed it must stock what the customer wants.