Risk Score
Pending analysis
Investment Range
$505,820 - $1,003,136
Franchise Fee
$40,000
Total US Locations
6
Business Summary
GolfCave operates indoor golf facilities that offer golfers of all skill levels the chance to play or practice on a golf simulator in their own private "Cave." GolfCave primarily uses a membership-based model to generate recurring revenue, aiming to provide the best indoor golf experience.
Corporate History
GolfCave Franchising, LLC was established as a New Jersey limited liability company in May 2022. The company franchises businesses that operate indoor golf facilities, allowing golfers to play or practice on simulators in private "Caves." Its affiliates have been operating GolfCave businesses since February 2012, with the oldest one opening then. GolfCave Franchising, LLC began actively franchising in 2024, with its first franchised units opening that year.
Financial Overview
Investment Range
$505,820 - $1,003,136
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Royalty %
8.5%
Equipment Costs (Low)
$368,660
Equipment Costs (High)
$740,026
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GolfCave Franchising, LLC has faced continuous operational losses, leading to an accumulated member's deficit of $164,156 as of December 31, 2024. Its operations have been sustained by capital contributions and franchise sales. The company has $62,243 in cash against $71,907 in current liabilities, with a significant portion of liabilities being deferred revenue expected to be recognized soon. The franchisor's financial condition, as presented, raises questions about its capacity to provide necessary services and support to its franchisees. Despite these challenges, GolfCave Franchising, LLC is focusing on expanding its franchisee base and anticipates increased royalties from new openings.
Financing Details
GolfCave Franchising, LLC does not offer any direct or indirect financing to its franchisees. Additionally, GolfCave Franchising, LLC does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
6
Franchised Units
3
Corporate Units
3
Avg Square Footage
5,500
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
GolfCave Franchising, LLC has no litigation to disclose in this Item.
Bankruptcy History
GolfCave Franchising, LLC has no bankruptcy history to disclose in this Item.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, GolfCave franchisees must notify GolfCave Franchising, LLC in writing between six and nine months before their initial agreement expires. They must have consistently complied with their franchise agreement and brand standards, and all monetary obligations to GolfCave Franchising, LLC, its affiliates, their landlord, and suppliers must be up to date. Franchisees or their General Managers must attend and successfully complete any required training at their own expense. A successor franchise fee, equal to two-thirds of GolfCave Franchising, LLC's then-current initial franchise fee for similar stores, is required. Additionally, franchisees must refurbish, redesign, or remodel their store to meet current brand standards. If under an Area Development Agreement, development obligations must be met. Finally, satisfactory evidence of a renewed or new lease for the store location must be provided, and franchisees must sign a General Release form.
Training & Support Program
Franchisor Assistance
GolfCave Franchising, LLC provides franchisees with comprehensive support both before and after their store opens. Before opening, GolfCave Franchising, LLC helps with site selection criteria and approves the chosen location, reviews and approves lease or purchase agreements, and provides guidance on store plans and specifications, including minimum dimensions and equipment. It also furnishes its confidential Brand Standards manual, offers an initial training program for up to three people (including the Managing Owner and General Manager), and specifies required equipment, materials, and third-party software (like RingCentral and OpenPath, for which franchisees reimburse the franchisor). Ongoing support includes various field support services, such as on-site visits, off-site sessions, and consultations via phone or electronically, all subject to personnel availability. GolfCave Franchising, LLC provides standard electronic accounting forms, continues to approve advertising materials, and sets requirements for branded merchandise. It also shares information about approved marketing vendors and may exercise rights regarding the pricing of store programs and services. Additionally, GolfCave Franchising, LLC sets requirements for personnel selection, training, and duties.
Initial Training Hours
31.5
Training Location
An existing GolfCave Store in New Jersey, or virtually
Ongoing Support
After opening, GolfCave Franchising, LLC provides ongoing support through optional field support services, including on-site visits, off-site sessions, and consultations via phone or electronically, all dependent on personnel availability. Franchisees can also contact headquarters for guidance. GolfCave Franchising, LLC provides standard electronic accounting forms, approves advertising materials, and sets requirements for branded merchandise. It shares information about approved marketing vendors and requires reimbursement for ongoing third-party software like RingCentral and OpenPath. GolfCave Franchising, LLC may also develop and sell proprietary products in the future and continues to furnish requirements for personnel selection, training, and duties. Additionally, GolfCave Franchising, LLC may hold quarterly virtual update meetings, which are mandatory if they cover new technology, and provides constant access to a virtual training library with videos.
Franchise Requirements
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
Non-Exclusive
Staff Count
7
Staffing Notes
GolfCave Franchising, LLC requires franchisees to staff their business with a competent and trained team, adhering to specifications in the Brand Standards for selection, qualifications, hiring, and training. Each GolfCave business must have a full-time General Manager responsible for daily operations, who must meet specific educational, managerial, and business standards and successfully complete the initial training program. If the franchisee is a business entity, a Managing Owner oversees the General Manager on a constant basis. Franchisees must promptly notify GolfCave Franchising, LLC of any General Manager changes and ensure successors are approved and trained. While GolfCave Stores aim to be open for extended hours, including unstaffed periods, franchisees are responsible for complying with local laws regarding staffing during these times and may be required to staff their store for a minimum number of hours per week. GolfCave Franchising, LLC may also mandate security features for unstaffed operations, such as telephone answering services and panic buttons.