Risk Score
Pending analysis
Investment Range
$1,728,500 - $4,380,000
Franchise Fee
$20,000
Total US Locations
28
Business Summary
Five Iron Golf Centers operate as high-tech, multi-functional indoor golf simulator and entertainment facilities. These centers are open to the general public and provide top-of-the-line golf simulator bays, professional golf lessons, custom golf club fittings, weekly league play, monthly memberships, and club storage. They also offer various ancillary game options, retail items, and host events of all sizes. Additionally, Five Iron Golf centers feature a full restaurant and bar that serves high-end food and beverage products.
Corporate History
Five Iron Golf Franchising LLC was formed on April 5, 2022, as a New York limited liability company. It operates under the name Five Iron Golf and began offering franchises for Five Iron Golf Centers in May 2022. The company itself had not conducted business in any other line before franchising. Its parent company, The Range NYC LLC, was formed in November 2015. An affiliate, Five Iron Golf IP LLC, owns the trademarks and licenses them to Five Iron Golf Franchising LLC. Another affiliate, Five Iron Golf International LLC, started franchising Five Iron Golf Centers outside the United States in January 2022. Five Iron Golf Franchising LLC also has affiliates that operate company-owned Five Iron Golf Centers in various states.
Financial Overview
Investment Range
$1,728,500 - $4,380,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$50,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$1,420,000
Equipment Costs (High)
$3,550,000
Working Capital
$115,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Five Iron Golf Franchising LLC had a working capital deficit of approximately $1,600,000 and an accumulated deficit of approximately $1,500,000 as of December 31, 2024. The company has incurred losses since its start and has historically relied on its parent company, The Range NYC LLC, for cash flow needs, which amounted to a $1,564,807 payable balance as of December 31, 2024. Management is taking steps to ensure Five Iron Golf Franchising LLC can continue operating, including support from its parent company. The franchisor's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees.
Financing Details
Five Iron Golf Franchising LLC does not offer any direct or indirect financing options. The company and its affiliates will not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
28
Franchised Units
3
Corporate Units
25
Avg Square Footage
10,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Five Iron Golf Franchising LLC has no litigation to report in this section.
Bankruptcy History
Five Iron Golf Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Five Iron Golf Franchising LLC franchisees must be in full compliance with their Franchise Agreement and all system standards. They must provide timely written notice of their intent to renew, pay a renewal fee equal to 50% of the then-current initial franchise fee, and maintain possession of their approved premises or secure an acceptable substitute. Franchisees are also required to remodel or upgrade their center to meet current brand standards, regardless of the cost. Finally, they must sign Five Iron Golf Franchising LLC's then-current Franchise Agreement, a general release of claims (if permitted by law), and any other documents typically used to grant franchises.
Training & Support Program
Franchisor Assistance
Five Iron Golf Franchising LLC provides extensive support to its franchisees. Before opening, the company assists with site approval and lease review, designates the territory, and offers specifications for the center's design, layout, and equipment. Franchisees receive initial training for up to three people (including the Managing Owner, Location Manager, and Lead Trainer) covering operational aspects, policies, and computer systems. They also get access to the Operations Manual and advice on the initial advertising program. After the center opens, Five Iron Golf Franchising LLC offers ongoing advice based on reports and inspections, guidance on operating procedures, purchasing, advertising, and employee training. Franchisees have continuous access to the updated Operations Manual, can request additional training or consultation services (for a fee), and receive support in implementing system standard modifications, defining membership offerings, and establishing pricing. The franchisor also inspects centers and periodically offers refresher training courses.
Initial Training Hours
200
Training Location
New York, NY, Chicago, IL, or another designated location (which may be online)
Ongoing Support
After opening, Five Iron Golf Franchising LLC provides ongoing operational advice through reports, inspections, the Operations Manual, bulletins, electronic media, and telephone consultations. Franchisees can request additional or special guidance and training, though this may incur a fee. The company also sends at least one representative to the center for a minimum of five days to provide on-site support for pre-opening and opening activities at its own cost. Refresher training courses are offered periodically, potentially with registration fees, and additional training may be required if audits reveal non-compliance with system standards, for which the franchisee will pay.
Franchise Requirements
Ideal Candidate Profile
Five Iron Golf Franchising LLC seeks franchisees who can appoint a Managing Owner to oversee and supervise the center's operations. This individual needs to ensure a competent, trained staff, including an approved full-time Location Manager responsible for direct, on-premises supervision of the center. Franchisees and their Managing Owners are expected to be actively involved in day-to-day business activities, faithfully and diligently performing contractual obligations, and using their best efforts to promote and enhance the center. Candidates should have sufficient business experience, aptitude, and financial resources.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Five Iron Golf Franchising LLC determines the size and boundaries of each territory based on factors such as population density, neighborhood character, location, competition, traffic flow, and other demographic factors. The size of the protected territory varies by market type. In urban markets, territories are based on city blocks, while in suburban markets, franchisees receive a minimum 2-mile radius around the premises.
Staffing Notes
Five Iron Golf Franchising LLC requires that each center always be under the full-time, direct, on-premises management of an approved Location Manager. The franchisee, or their appointed Managing Owner, along with the Location Manager, are responsible for day-to-day business activities. The company's System Standards may regulate staffing levels, personnel identification, and employee qualifications, training, dress, and appearance.