Stillwater's Hammer-Schlagen Pursues Nationwide Franchising to Bring Game to Bars

Regulation isn't stopping a new Stillwater company from pursuing its goals of expanding a festival and party-goer favorite that may soon reach far beyond Minnesota's borders.

After nearly two years of preparation, HS Franchising, LLC, was organized in July to franchise the decades-old Hammer-Schlagen brand. The final regulatory filing was submitted July 21 to the Minnesota Department of Commerce and the United States' first Hammer-Schlagen franchises are expected to be granted this month.

Franchising allows a brand owner to grant the right to profit from its trademarks while also providing
assistance to the person or persons using it. The federal government and each individual state follows specific mandates to ensure the franchisee receives what brand owners promise.

The relationship is detailed in a "franchise disclosure document," which describes how assistance will be provided. The often several-hundred-page documents encompass franchise fees that usually range from tens to hundreds of thousands of dollars.

Martin says Hammer-Schlagen franchises are an unconventional way to share the brand. The disclosure document is 110 pages and lacks requirements to advertise, contribute to brand building funds, share legal expenses, join cooperatives and attend conventions. Instead, the focus is on bars that can launch their own Hammerschlagen franchise for an average cost of around $475 per year

Hailing from Stillwater, Hammer-Schlagen offers the world's most famous German-born nail driving competition in which players take turns nailing a hammer into a log. The Hammerschlagen family of trademarks are currently owned by WRB, Inc., who has operated the brand for 18 years.

"We don't sell anything tangible," said CEO Jim Martin. "We provide entertainment from Washington state to Florida and from Wisconsin to Texas."

Martin says WRB is currently unable to service all the venues whose patrons have asked for Hammer-Schlagen, particularly in Minnesota. He hopes franchising is the answer.

"We've tried trademark licenses but need the assistance aspect of franchising," he said.

Accompanying photo courtesy of Flickr.