Golfing is one luxury sport that will never go out of the market. It’s a leisure game and a professional extravaganza as well. However, keeping the prospect of the sport aside, if you are an entrepreneur looking to make a big breakthrough with your investments, a Topgolf franchise can do a lot more for you than you expect.
Not only do you get to place down an establishment, but you also get to generate a string of passive income from a single investment. Granted, it’s not a cheap investment but one that will bring you a steady source of income without any compromise.
This article will explore everything you need to know about the Topgolf Franchise, the costs involved, and the profits you can earn from the establishment.
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About Topgolf Franchise
Topgolf International is a leading establishment in sports entertainment. The best thing about a Topgolf franchise is that they do much more than just entertain their guests with golf.
Potential customers also use the establishment to host events, parties, and get-togethers to spend some amazing time with their loved ones. The brand was founded in 2000 and is now spread across multiple countries and continents.
Despite being founded in 2000, the first Topgolf Franchise didn’t come into being until 2005. Till now, around 64 Topgolf franchises have been open across the world.
Also, since Topgolf is an already successful and proven business model, it isn’t surprising that budding entrepreneurs are exploring the franchise option. However, with guaranteed profits, the initial investment seems like a step in the right direction.
Unlike most other entertainment establishments, Topgolf International focuses on innovation and diversity. It allows you to work around a famous brand while extrapolating things with maximum support and training programs for the staff.
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How to Open Topgolf Franchise?
Opening a Topgolf franchise isn’t as complicated as you think. The steps are straightforward and allow you to generate a quick return on investment after the process is finalized.
Here’s a step-by-step breakdown of the process of opening a Topgolf franchise:
1. Sort out the Capital
Opening a Topgolf franchise isn’t a cheap affair. To open and run the establishment full-fledged, you need an average initial investment of $18 million. So, even before you apply for the franchise, this is a marker you have to cross-check.
2. Focus on the Accessory Cost
So, now that you have sorted out the initial cost of opening a Topgolf franchise, the next thing is to consider the accessory costs. This includes the real-estate costs, equipment, signs, banners, marketing, permits, uniforms, employment, etc. These are all the additional expenses you must also keep in mind.
3. Assess the Market
Topgolf International is a popular and profitable business model. However, you need to gauge the market for it. Where do you play to start the franchise? Is there another Topgolf franchise nearby? Is there a demand for the kind of services and sports entertainment the establishment offers? You need to keep these in mind before you apply for the franchise.
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4. Submit the Application
Once you tick off all the markers from pointers 1-3, the penultimate step is to go forward and submit the application. The franchise team will check through the documents and verify your financial status to check your eligibility. Also, Topgolf’s team will send you a confirmation email upon receiving your application for the franchise.
5. Receive Approval and Kickstart
The last step is to wait for approval patiently. The franchise team at Topgolf will do a thorough background and verification check. You should get the approval if you stand out on all the eligibility grounds. Following that, you need to complete the formalities and then get started with the franchise.
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How Much Does a Topgolf Franchise Cost?
We touched on this subject lightly in the previous section. However, starting a Topgolf International franchise isn’t a small investment.
Depending on the country, state, real-estate demands, market demands, etc., Topgolf will charge between $15 million to $50 million.
The involved cost for the royalty fees, initial franchise establishment, liquid cash requirements, etc., should be submitted to Topgolf Entertainment Group, who then go ahead to provide the license and permit for the franchise.
Additionally, remember that the Topgolf franchise cost depends on the country you are opening it in. We will give a quick rundown of the estimated costs based on the countries below:
United States – $15 to $50 million.
Mexico – MXN 309 – MXN 1,029 mln.
United Kingdom – 11.15 to 37.17 mln British pound sterlings.
Australia – AUD 20.44 to AUD 68.12 mln.
United Arab Emirates – AED 55.09 – 183.65 million.
India – Rs 111.56 to Rs 371.87 crores.
Germany – EUR 13.19 to EUR 43.98 million.
These numbers also depend on the current market demands and the degree of inflation in the specific market at that point.
How Much Do Topgolf Franchise Owners Make?
Before you get confused about how big of an investment starting a Topgolf franchise is, you must look into the return on investment.
A Topgolf International franchise can easily generate an annual profit of $21.5 million course; this number will also fluctuate depending on the inflation in the market.
However, as you can see, the first year’s profit makes up for the initial investment you put into starting the franchise. That’s why most franchise owners say that the investment is huge, but so is the profit each year.
What are the Benefits of investing in a Topgolf Franchise?
With so many franchises available worldwide, why should you consider Topgolf International?
To be fair, the answer lies in the section right above. The return on investment is humongous and very profitable in the long run.
Some of the major benefits of investing in a Topgolf franchise include:
- First, it is an established company name, meaning you won’t have to spend resources to establish the brand from scratch.
- It is an all-inclusive franchise establishment, which includes the cost of running the facility, so you won’t have to worry about additional and unnecessary expenses.
- The franchiser provides training to the hired staff, including the Associate and the management team. This makes it easier for you to run the establishment without any worry.
- With an established franchise, you aren’t shooting your shot in the dark. You will know about the equipment, the operations, and the outcomes. In addition, you won’t have to spend an unnecessary amount of money on the marketing and advertising aspect of things, which is a bonus too.
Since Topgolf includes all of these amazing perks with their franchise, the initial investment is extremely high. But, as we said, the return on investment is even better. So, once you kickstart the process, you won’t have to look back on the big investment.
Conclusion
Topgolf International is a leading sports entertainment brand that will not stop anytime soon. So, if you are considering making a big investment in your entrepreneurial journey, this is where you start. However, acquiring approval for the franchise isn’t easy. They require a lot of comprehensive verification and background checks that you need to pass to get the license and permit. We hope this article answers all your questions in detail.
