Risk Score
Pending analysis
Investment Range
$414,430 - $1,690,127
Franchise Fee
$17,500
Business Summary
Golf VX operates premier entertainment centers that provide indoor golf simulators, entertainment, and tournaments. These centers also offer golf instruction and feature a sports bar with gourmet food and beverages. Alternatively, Golf VX can operate as an academy, focusing on golf simulators, instruction, driving ranges, and a limited food and beverage menu.
Corporate History
Golf VX Franchising, LLC was established on October 4, 2023, as an Illinois limited liability company. It operates the Golf VX Venue franchise system and began offering franchises on its issuance date. The parent company is Golf VX Corp., an Illinois corporation established on November 17, 2022. An affiliate, AHTIL GVX LLC, established in June 2023, is currently opening a Golf VX Venue in Northbrook, Illinois. Another affiliate, DF Investment Group LLC (established October 4, 2022), is a 50% owner of the parent company and owns the Licensed Marks. Kakao VX Corp., a South Korean corporation established July 13, 2012, is also a 50% owner of the parent company.
Financial Overview
Investment Range
$414,430 - $1,690,127
Franchise Fee (Low)
$17,500
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$186,390
Equipment Costs (High)
$759,194
Working Capital
$47,664
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Golf VX Franchising, LLC's financial statements show it was recently established on October 4, 2023, and for the period ending December 31, 2023, it reported a net loss of $36,563 and negative cash flow from operating activities. The company has $110,000 in cash and members' equity, with no liabilities. The independent auditors noted that management is required to evaluate conditions that raise substantial doubt about the company's ability to continue as a going concern, and the FDD itself highlights the franchisor's financial condition as a risk that calls into question its ability to provide services and support.
Financing Details
Golf VX does not offer any direct or indirect financing to its franchisees. This means franchisees are responsible for securing their own funding from third-party lenders for their notes, leases, or other obligations.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
8,000
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Golf VX has disclosed two litigation cases. One case, CAE Enterprises, Inc. vs Neo SLA, LLC and CRPTX DF, LLC, was filed in May 2020. This involved allegations that the defendants, including Golf VX's Co-Chairman Jimmy No, failed to comply with the terms of a bill of sale for various franchise locations. The case was settled for $61,000 and dismissed in November 2021. The second case, Master Wireless W. North Inc. d/b/a Master Wireless Golf Center v. Kyu Choi, was filed in June 2023 against Golf VX's President, Kyu Choi. The plaintiff alleges breach of contract, fraudulent concealment, and unjust enrichment related to an asset sale agreement where Mr. Choi allegedly withheld information about residual commissions. Mr. Choi denies these allegations, and a motion to dismiss the complaint was filed in December 2023. This case is currently pending.
Bankruptcy History
Golf VX has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Golf VX franchisees must be in full compliance with their current Franchise Agreement and all other related agreements. They must provide 180 days' written notice of their intent to renew before the current term expires. Franchisees are required to sign Golf VX's then-current Franchise Agreement and associated agreements, which may have terms different from their original agreement. They must also sign a general release in favor of Golf VX. A renewal fee must be paid, and the venue must be remodeled and upgraded to meet Golf VX's current standards. Additionally, franchisees must ensure they have the legal right to continue occupying their venue location for the entire renewal term. All owners must also be in compliance with their agreements and personally guarantee the terms of the new renewal Franchise Agreement.
Training & Support Program
Franchisor Assistance
Golf VX provides various forms of assistance to its franchisees. Before opening, Golf VX grants the franchise, designates the territory, provides access to confidential manuals, and reviews and approves the franchisee's chosen site. It also provides lists of approved suppliers, equipment, furniture, fixtures, and signage, and identifies the venue on its website. Golf VX also conducts initial training for the managing owner and one manager. After opening, Golf VX may require and provide supplemental on-site training (for a fee of $500 per trainer per day plus expenses) and initial training for replacement operating managers. It communicates operating standards, marketing standards (which require prior approval), and provides names of approved vendors. Golf VX may also coordinate and require attendance at an annual conference (with a fee up to $1,500 plus travel/lodging). For advertising, all marketing efforts require prior written approval, and franchisees must spend at least 1% of monthly gross sales on local marketing. Golf VX may also administer a Brand Development Fund (up to 2% of gross sales) and establish local advertising cooperatives, which franchisees must participate in. Franchisees are required to use Golf VX's proprietary point-of-sale system and other designated computer systems, to which Golf VX has independent remote access.
Initial Training Hours
40
Training Location
Arlington Heights, Illinois
Ongoing Support
Golf VX provides ongoing support through various means after a franchisee opens their venue. This includes communicating updated operating standards, procedures, and system requirements. Golf VX designates and modifies approved services, products, and system supplies, and provides lists of approved suppliers. The franchisor also establishes and communicates marketing and brand standards, requiring prior approval for all franchisee marketing materials and digital media. Golf VX may offer supplemental on-site training for a fee ($500 per trainer per day plus expenses) and requires replacement operating managers to complete initial training (also for a fee). Franchisees are required to attend an annual system conference if offered, with an attendance fee of up to $1,500 plus their own travel costs. Golf VX administers a Brand Development Fund, to which franchisees contribute up to 2% of gross sales, used for system-wide marketing and technology development. Franchisees must comply with requirements for maintaining and upgrading designated computer and point-of-sale systems, and Golf VX retains independent access to all system data.
Franchise Requirements
Ideal Candidate Profile
The FDD does not provide a detailed profile of the ideal candidate beyond requiring a Managing Owner to be personally responsible for management and supervision, who must also complete training and be approved by Golf VX. While a hands-on approach is recommended, franchisees can hire an approved operating manager for day-to-day on-site operations, provided that manager meets specific criteria, completes training, and signs a confidentiality agreement. Golf VX emphasizes the need for the Managing Owner or Operating Manager to actively oversee the venue.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Golf VX defines the designated territory around the approved venue location. The size of this territory is typically the smaller of a 5-mile radius from the venue or an area encompassing a population of 150,000 people. If the venue is within a captive market like a shopping mall, the territory might be limited to the physical boundaries of that facility.
Staffing Notes
Golf VX franchisees are solely responsible for hiring, training, managing, and supervising their employees. Golf VX requires all employees to wear approved System-branded uniforms and ensures that all system supplies and approved services and products are prepared and served according to system standards. Each venue must be managed on-site by either a Managing Owner or an approved Operating Manager who has completed Golf VX's initial training program and signed a confidentiality agreement.