In the years since Hobby Lobby started operations, it has grown into one of the largest retailers in the country.
So, if you’re looking to get onto the company’s team by opening a franchised location, you should read this article before going any further!
Is Hobby Lobby a Franchise In 2024?
Hobby Lobby is not a franchise in 2024. Companies that operate under this model give people the right to use their brand in their business for a fee, but Hobby Lobby owns and operates its own stores. At this time, Hobby Lobby doesn’t lease out the rights to its name or brand, so all the income stays within the company.
Continue reading to learn everything you need to know about Hobby Lobby’s franchising situation, including the ownership of its stores, the company as a whole, and more!
How Much Is a Hobby Lobby Franchise?
There are no Hobby Lobby franchises, so you can’t buy one at this time.
If we had to estimate a possible price, it would be in the millions, because the company operates almost exclusively using superstores.
What Is the Hobby Lobby Franchise Fee?
There is no Hobby Lobby franchise fee because the company owns and operates all its stores, like other retailers of similar sizes, such as Walmart and Target.
How Much Does It Cost to Open a Hobby Lobby?
We can’t say for sure how much it would cost to open a Hobby Lobby store, because the company owns and operates all its locations and has not made that information public.
Rather, Hobby Lobby is a privately owned company, so it’s not under any obligation to release its financial statements like publicly traded companies.
If Hobby Lobby was a public company, it would have to make its finances available so that current and potential investors could make informed decisions about the stock.
Due to the size of each Hobby Lobby store, though, it’s reasonable to conclude that it would be expensive to open one.
This is why it’s more sustainable if the business is operated by the company owners instead of franchisees.
Hobby Lobby operates several superstores, and there’s a reason why retailers that get to that size are almost never franchises. Think of Best Buy, Target, and Walmart.
It would cost millions to open up one of these stores, and the franchisees would struggle to come up with the initial investment, never mind the follow-up payments.
A franchisee falling behind on their payment would get their branding rights taken away, and likely be forced to shut down the location.
Several closures would make it seem like the company was in trouble and lower the public’s confidence, damaging whatever value the brand had.
How Do I Open a Hobby Lobby Franchise?
You can’t open a Hobby Lobby franchise, because the company owns and controls all its stores alone.
Is Hobby Lobby Profitable?
It’s unclear if Hobby Lobby is profitable because it doesn’t release its financial information.
Most financial specialists have estimated the company’s annual revenue, placing it somewhere around $4 billion and $6 billion a year.
These figures are obtained by looking at the scope of the company, its reach, and by comparing it to other retailers of similar size.
Hobby Lobby has also not made moves that would increase its revenue.
This includes opening on Sundays, expanding beyond the 47 states where it has stores or accepting orders from outside the country.
This would imply that Hobby Lobby is not looking for additional income sources and that it’s not profitable.
Is Hobby Lobby Privately Owned?
Hobby Lobby is privately owned, remaining under the control of the family of founder and CEO David Green.
According to a statement on the company website, Hobby Lobby intends to remain a privately owned company and does not have any plans to go public.
Are Hobby Lobby and Mardel Owned by the Same Company?
Hobby Lobby and Mardel are not owned by the same company. In fact, both companies are under the control of the Green family, but neither owns the other.
Both of these companies don’t operate as franchises, but they have close ties and affiliations that we’ll look at below.
Does Hobby Lobby Own Mardel?
Hobby Lobby does not own Mardel and doesn’t own any other companies or franchises.
These two companies are closely linked, though, because Mardel was founded by Mart Green, son of Hobby Lobby’s founder, and CEO David Green.
Additionally, Mardel’s headquarters are within the same complex in Oklahoma City.
What Are Other Available Store Franchises?
You can’t buy a Hobby Lobby franchise, but if you’re set on owning a similar store, you can buy into the following franchising alternatives:
- 7-Eleven
- Ace Hardware
- Snap-On Tools
- Matco Tools
- Circle K
- Cornwell Quality Tools
- Mac Tools
- Rent-A-Center
- Wireless Zone
- Uptown Cheapskate
If you’re just looking to buy into any kind of franchise, then you can look into the following companies with about the same required investment:
- McDonald’s
- KFC
- Burger King
- Domino’s
- Papa John’s
- Taco Bell
- Pizza Hut
- Wendy’s
- Dunkin’
- Subway
Going by Hobby Lobby’s size, if it was a franchise, you would need to pay something within the mid-six figures to low seven figures.
Using this estimate, the companies above would be within the same range, despite them being restaurants.
To learn more, you can also read our posts on what is Hobby Lobby, where are Hobby Lobby stores, and if Hobby Lobby is a good place to work.
Conclusion
Hobby Lobby is not a franchise, as it owns and operates all of its stores and doesn’t allow third parties to lease the brand.
Because Hobby Lobby operates superstores, it would cost millions to open one store, so the company would likely struggle to get many franchisees.
