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Description
Investment Icon

What Are the Initial Costs to Open an X-Golf Franchise?

To open an X-Golf franchise, you should expect an initial investment ranging from $993,500 to $1,939,500. This includes a franchise fee of $35,000. Additionally, you will need to have cash readily available between $150,000 and $200,000, along with a net worth of $500,000 to $1,000,000. Understanding these financial requirements is crucial for aspiring franchisees to ensure they are adequately prepared for the investment.

Fees Icon

What Are the Ongoing Fees for X-Golf Franchisees?

As an X-Golf franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your revenue and a marketing fee of 1%. These fees contribute to the overall support and marketing efforts of the franchise, helping to enhance brand visibility and drive sales. It's vital to factor these costs into your financial planning to maintain profitability.

Revenue Icon

What Is the Average Revenue Potential for X-Golf Units?

The average annual revenue per X-Golf unit is approximately $113,000, with a median revenue of $112,000. While the lowest revenue recorded is $67,000, some units have achieved as much as $187,000 annually. This revenue potential can vary based on location, market demand, and operational efficiency, making it important for franchisees to conduct thorough market research before committing.

Breakeven Icon

How Long Until an X-Golf Franchise Breaks Even?

X-Golf franchises typically experience a breakeven period of around 18 months, with a payback on investment expected within 24 months. This timeline can help franchisees plan their financial strategy and set realistic goals for their business growth. Understanding the breakeven point is essential for managing cash flow and ensuring long-term sustainability.

X-Golf Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$35,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

7%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

18 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$993,500 - $1,939,500
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$150,000 - $200,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$113,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$112,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$187,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$67,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Entertainment Franchises
Category icon A more specific division within the broader industry.

i Category:

Family Entertainment Centers
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Ryan Darcy
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

24416 Main St., Ste 301, Carson, California 907
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2015
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

X-Golf America

X-Golf Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

99
The number of locations owned by independent franchisees.

Franchised Units i

99
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 24 43 70
Net Change YoY 19 27
Franchised Units 24 43 70
Net Change YoY 19 27
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Investment Overview

The X-Golf franchise offers a range of initial investment options, with costs ranging from $993,500 to $1,939,500. This includes a franchise fee of $35,000. Prospective franchisees should be prepared for a cash requirement of $150,000 to $200,000 and a net worth requirement between $500,000 and $1,000,000. Understanding these financial commitments is crucial for those considering joining the X-Golf family.

Potential About

Revenue Potential

X-Golf franchises show promising revenue potential, with an average annual revenue of $113,000 per unit. The median revenue stands at $112,000, while the highest-performing units can generate up to $187,000 annually. This financial outlook makes X-Golf an attractive option for entrepreneurs looking to invest in a growing sector.

Metrics About

Franchise Growth

The X-Golf franchise has experienced significant growth in recent years, expanding from 24 franchised units in 2021 to 70 in 2023. This upward trend reflects a strong demand for indoor golf experiences and the brand's effective franchise model, making it a compelling opportunity for new investors.

Fees About

Operating Costs

Franchisees should be aware of the operating costs associated with running an X-Golf unit. Average annual expenses total approximately $273,500, covering rent, utilities, insurance, and other operational necessities. Understanding these costs is essential for managing profitability and ensuring the success of the business.

Breakeven About

Profitability Metrics

The financial performance of X-Golf franchises indicates a gross profit margin of 60%, with average operating expenses accounting for 56% of revenue. This results in an EBITDA of $4,800, highlighting the potential for profitability within the franchise model. Franchisees must focus on operational efficiency to maximize their earnings.

Units About

Breakeven and Payback

New X-Golf franchisees can expect to reach breakeven within 18 months and achieve a full return on their investment in approximately 24 months. These timelines provide a clear roadmap for financial recovery, allowing franchisees to plan their growth strategies effectively and confidently.

Frequently Asked Questions

The initial investment for an X-Golf franchise ranges from approximately $993,500 to $1,939,500, which includes expenses like the franchise fee, equipment, and other essential costs.