Are you interested in joining a prominent sports entertainment franchise? Are you considering a partnership with a well-known chain in the sports industry? If you’re a golf enthusiast who has been searching for information about Topgolf, you’ve come to the right place.
Look no further! In this comprehensive Topgolf Franchise Opportunity guide, we’ll delve into the Topgolf along with its cost, fees, profit potential, and provide step-by-step guidelines to get this franchise. Additionally, we will address common questions that arise regarding Topgolf chain.
- Brand: Topgolf
- Founded: 2000
- Key People: Steve and team
- Industry: Sports & Entertainment
- No. of outlet: 70+
- Area served: Worldwide
- Franchise Fee: NA
- Royalty Fee: NA
- Ad Royalty Fee: NA
- Model: Franchise
- Est. Initial Investment: $15 Million to $50 Million
Table of Contents
Overview of Topgolf Franchise
Established in the year 2000 by a group of close friends—Steve Jolliffe, Dave Jolliffe, Mark Murray, and Barry Cumbie—Topgolf has grown into a prominent worldwide sports entertainment company. It offers a unique blend of golfing, interactive gaming, and entertainment experiences, providing a fun and thrilling environment for visitors.
Undoubtedly, Golf has a humongous loyal fan base, which is usually enjoyed across the globe. However, Topgolf has garnered acclaim for creating vibrant social atmosphere thanks to its diverse range of food and beverage options, live music, and other entertainment activities, making it a sought-after destination for golf enthusiasts, casual players, and entertainment seekers alike in search of an exceptional and gratifying experience.
Currently, the chain boasts an enormous network of over 70+ locations globally, which is headquartered in Dallas, Texas, and it is certainly expanding across the major tier 1 countries including countries like United States, United Kingdom, Australia, Germany, Mexico and the United Arab Emirates.
In October 2020, Topgolf was acquired by Topgolf Callaway Brands, and the merger was officially completed in March 2021.
With multiple locations expanding throughout the United States and International market, Topgolf has attain a prominent position and a go-to destination for group outings, corporate events, parties, and casual hangouts.
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The Journey of Topgolf
A simple one liner – Absolute remarkable.
Their humble beginning started in 2000 when four friends, mentioned above, collaborated together to create a unique and innovative concept that combined golf, entertainment, and technology.
Topgolf’s growth has been nothing short of impressive since its launch. Within just a few years, Topgolf has shown tremendous growth that helped them to expand to several other countries thanks to its unique approach of combining traditional elements with state-of-the-art technology.
Currently, the chain is acquired and successfully operated by its parent organization – Topgolf Callaway Brands.
Key Facts on Topgolf
| Sr No. | Type | Public |
|---|---|---|
| 1 | Trade Name | Topgolf |
| 2 | Industry | Sports entertainment |
| 3 | Founded | 2000 |
| 4 | Founders Or Parent Company | Parent – Topgolf Callaway Brands Corp |
| 5 | Corporate Headquarters | Dallas, Texas |
| 6 | Number of locations | 70+ locations |
| 7 | Area served | US, UK, AUS, Germany, and other |
| 8 | Model | Franchise and JV |
| 9 | Service offering | Sports, Entertainment, Food, and more |
| 10 | Revenue | US $1.9 Billion |
| 11 | Website | https://topgolf.com/ |
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Is Topgolf a Franchise?
Certainly! Topgolf operates both as a franchise and through joint venture arrangements. These partners helps the chain to bring the unique Topgolf experience to different markets.
However, According to the official website and statements from Topgolf, they are currently not actively seeking new franchise developers. Their current focus is on opening and expanding existing territories that have already been assigned.
How much does Topgolf Franchise Cost?
As mentioned earlier, Topgolf hasn’t opted for franchising model. However, the cost for starting a Topgolf location will require a significant investment and it may depend on several factors, such as, geographical location, available field area, and investment required to furnish the space.
To embark on the journey of owning a Topgolf franchise, potential franchisees should be prepared to make a minimum investment ranging from $15 Million – $50 Million for a space of minimum of 13 acres of land, which presents an excellent opportunity for growth and success in the sports and entertainments business.
Additionally, the initial investment for Topgolf chain includes the franchise fee, equipment costs, leasehold improvements, and working capital.
Additional Cost for Topgolf
Operating and sustaining a Topgolf location involves adhering to the franchise’s standards and incurring additional costs such as royalty fees, advertisement fees, maintenance fees, and other necessary investments.
The Topgolf may charge a royalty fee of 5-8% and ad royalty fee of 3%, which will be calculated on monthly gross sales. These fees contribute to the ongoing support and promotion of the Topgolf chain.
| Type of Fee | Cost and other details |
|---|---|
| Area required | Min. 13-15 Acre |
| Franchise Fee | NA |
| Opening Inventory | Varies |
| Number of locations | 70+ |
| Total Initial Investment | $15 Million – $50 Million |
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How much is Topgolf Franchise Profit Margin?
The profit margin of any Topgolf location chain may vary depending on the several factors such as average customer footfall, market condition, services offering, customer experience, and etc.
Nevertheless, considering the Topgolf’s 2023 outlook, The estimated net revenues for the full year 2023 are expected to be in the range of $4,415 million to $4,470 million, representing an approximate 10% increase compared to the previous year’s results, which reported to be approximately US $3,996 Million.
For investors focused on profitability, Topgolf expects to achieve an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) ranging from $620 million to $640 million in the fiscal year 2023.
| (in millions) | 2023 CurrentEstimate | 2023 PreviousEstimate | 2022 ReportedResults | ||
| Net revenues | $4,415 – $4,470 | Approximately +10% | $3,996 | ||
| Adjusted EBITDA | $620 – $640 | Approximately $600 | $558 |
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Is Topgolf Franchise Profitable?
Undoubtedly, owning a Topgolf location offers numerous benefits to its owners. From providing a wide selection of food and beverage options to hosting live music and offering various entertainment activities for individuals of all ages, it presents a compelling and enjoyable experience for both franchisees and customers alike.
Considering the Net Revenues by Region, Topgolf has posted a robust growth in its total net revenue from $711.7 to $851.3, representing a growth of approximately 24.9%. Furthermore, the chain has demonstrated impressive performance across various regions, including the United States, Europe, Asia, and the rest of the world.
| Segment operating income: | 2022 | 2021 | Percentage |
|---|---|---|---|
| Topgolf | $ 2.5 | $ 6.1 | (59.0 %) |
| Golf Equipment | 0.7 | (24.9) | 102.8 % |
| Active Lifestyle | 0.1 | (2.3) | 104.3 % |
| Total segment operating income (loss) | 3.3 | (21.1) | 115.6 % |
| Corporate G&A and other(2) | (38.0) | (33.6) | 13.1 % |
| Total operating loss | (34.7) | (54.7) | 36.6 % |
| Interest expense, net | (42.5) | (40.5) | 4.9 % |
| Other income (expense), net | 1.0 | (0.5) | 300.0 % |
| Total loss before income taxes | $(76.2) | $ (95.7) | 20.4 % |
Must read: Article posted by the PRNewswire
Taking its operating income into a consideration, the Topgolf did really do well in terms of other segments except its primary one – Topgolf, and also the chain has manage to shorten its losses by 20.4% than previous year.
Therefore, it is essential for individuals interested in domestic or international opportunities with Topgolf to thoroughly research the company’s annual reports and growth prospects specific to their desired location.
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Does Topgolf sell Franchises?
Indeed, Topgolf does offer franchising opportunities, but it is limited to experienced entrepreneurs or organizations that possess substantial expertise in efficiently investing and operating US/UK brands.
But, according to its official website, Topgolf is not actively seeking applications for its franchising programs, as they are planning to put focus on extending the current location and make it even bigger.
Topgolf has been operating multiple locations in the United States and has also partnered with renowned brands to expand its presence in other countries through joint ventures.
What are the requirements to open a Topgolf Franchise?
- First and most important – One should be financially well-qualified and have good credit to start a Topgolf location, and should be ready to invest a minimum of $15 Million – $50 Million
- Interested applicants will be advised to dedicate themselves to the Topgolf business and follow the company standards and maintain their legacy.
- Interested applicants should have ability and willingness to open 5+ Topgolf venues.
- The franchisor requires applicants to have strong financial backing, including access to a minimum of $150 million in capital.
- Prospective applicants must possess a strong work ethic and unwavering dedication, as they will be actively involved during the initial stages of their new venture with Topgolf.
- Interested franchisees should have experience in entertainment, F&B, and/or hospitality and passion to work in the Sports and Entertainment industry and should possess the leadership and financial skills to operate a Topgolf location.
- The applicants should possess a history of success in bringing other USA/UK brands to their territory with an experience with large scale commercial real estate development.
- Last but not the least, the franchisee should also have strong local market knowledge and connections.
How to Get Topgolf Franchise?
Opening a Topgolf location as a franchise owner involves a relatively moderate investment while offering an impressive gross profit margin. Moreover, the Topgolf chain brings numerous benefits, and interested candidates can leverage their expertise and comprehensive support systems to establish franchise outlets in their city.
One can avail this franchise using below mentioned steps;
- Visit its official website and fill in the necessary details like Name, Email ID, Phone number, City, State, Country, and other required info.
Topgolf Franchise application – Apply here for Topgolf
Final Takeaway – Conclusion
Undoubtedly, investing in or owning a golf-related franchise can offer numerous benefits and advantages to the franchisee owner. However, it is important to note that at the moment, TopGolf is not actively accepting franchise applications. As a result, aspiring entrepreneurs may need to explore other opportunities in the sports and entertainment industry.
Furthermore, if Topgolf were to launch a franchising program in the future, it could potentially require an initial investment ranging from $15 million to $50 million US dollars. This investment would include acquiring over 15 acres of land to set up a golf course and additional entertainment zones offering food and beverage options.
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Want to explore more? Then check out below franchising opportunities.
Food & Beverages Franchise, Bakery Franchise, Home Improvement, Real Estate, and Tea & Café Franchise
FAQ
How much does it cost to start a Topgolf Franchise?
Ans: The initial investment required to set up a Topgolf entertainment space will be around US $15 Million to $50 Million.
How much does Topgolf Franchise owner make?
Ans: The income potential for a Topgolf owner may vary depending on the location, investment capabilities, and ability to understand the local market. Nevertheless, considering the rising demand in golf-related activities, varieties in food offering, and extensive training and support assistance may help new franchisee to anticipate a healthy profit margin.
