Risk Score
Pending analysis
Investment Range
$1,132,630 - $1,757,800
Franchise Fee
$25,000
Total US Locations
126
Business Summary
X-Golf operates indoor golf entertainment facilities that offer golf simulator training and play services, alongside food and beverage services, in a lively atmosphere. The X-Golf experience focuses on providing customers, ranging from avid golfers to beginners, with an enjoyable indoor golf experience using simulator machines.
Corporate History
X-Golf Franchise Corporation was established as a California corporation on February 27, 2015. Its parent company is X GOLF America, Inc. X-Golf began offering franchises in the same year, 2015. Currently, X-Golf America, Inc. operates several X-Golf businesses in Washington and New Jersey, and at Nationals Park in Washington, DC. X-Golf's Co-CEO and Director, Ryan Choi, also owns X Golf Co. Limited in South Korea, which supplies golf simulators, software, and hardware to X-Golf for its franchisees.
Financial Overview
Investment Range
$1,132,630 - $1,757,800
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$40,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$978,980
Equipment Costs (High)
$1,473,300
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
X-Golf Franchise Corporation appears to be in strong financial health. Its financial statements show consistent growth in net income, with $2,374,162 in 2024, $1,804,064 in 2023, and $1,189,138 in 2022. The company also maintains significant working capital, with $3,252,035 as of December 31, 2024. Although cash decreased in 2024, this was after paying $4,500,000 in dividends. The independent auditors have issued an unqualified opinion on the financial statements, indicating that they present fairly in all material respects.
Financing Details
X-Golf does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own financing and X-Golf does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
126
Franchised Units
122
Corporate Units
4
Avg Square Footage
7,750
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
X-Golf has two recent litigation cases. One, a shareholder derivative action, was voluntarily dismissed in California in February 2025. This case involved allegations that certain directors and executive officers siphoned revenues to an unrelated entity they controlled, X-Golf Michigan, LLC, by usurping corporate opportunities in Michigan. The claims from this dismissed case are intended to be brought as a counterclaim in a separate, ongoing Michigan lawsuit. The second case, filed in Michigan in January 2025, is a pending action where X-Golf Michigan, LLC and its individual plaintiffs accuse X-Golf Franchise Corporation and Michael Ruvolo of tortiously interfering with X-Golf Michigan's contractual relationships with Michigan franchisees. These relationships allegedly involved consulting agreements that required Michigan franchisees to pay additional royalties to X-Golf Michigan. X-Golf Franchise Corporation denies these allegations and has filed a counterclaim in January 2025, asserting that the consulting agreements were signed without its knowledge or consent and represent breach of contract, tortious interference, and violations of franchise law. The counter-defendants have not yet responded.
Bankruptcy History
X-Golf has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their X-Golf franchise agreement, franchisees must notify X-Golf between 90 and 180 days before the current term expires. They must be in full compliance with all contractual obligations to X-Golf and third parties, and cannot have defaulted more than twice under the franchise agreement or failed to cure a default within the specified period. Franchisees must also adhere to all ethics and values requirements, renovate their business to X-Golf's then-current standards, and sign X-Golf's current form of franchise agreement and related documents, including a personal guaranty. A renewal fee equal to 50% of the then-current initial franchise fee is also required, and franchisees must execute a general release of any claims against X-Golf and its affiliates, unless prohibited by law.
Training & Support Program
Franchisor Assistance
X-Golf provides comprehensive assistance to its franchisees both before and after opening. Before opening, X-Golf offers criteria for site selection, reviews potential locations, and provides advice on floor plans and interior design, which are subject to its approval. X-Golf also furnishes a list of specifications and approved suppliers for necessary equipment, signs, fixtures, initial inventory, and supplies. Franchisees receive initial training, and X-Golf advises on the planning and execution of their market introduction plan. Post-opening, X-Golf offers ongoing advice by phone or electronic communication for business improvement and problem resolution upon request. It also provides recommended prices and administrative, bookkeeping, accounting, and inventory control procedures upon request. X-Golf manages the Marketing Fund, maintains the brand website including franchisee information, and its affiliate, X GOLF America, Inc., provides service and support for X-Golf simulators at no additional charge, though this may change.
Initial Training Hours
38
Training Location
Fort Collins, CO or another X-Golf franchise location
Ongoing Support
After opening, X-Golf provides ongoing advice to franchisees via telephone or electronic communication regarding business improvement and operational problem-solving, as deemed reasonable by X-Golf. Should franchisees request in-person support, a fee of $600 per day plus expenses may be charged. X-Golf also offers recommended pricing for products and services, and advises on administrative, bookkeeping, accounting, and inventory control procedures upon request. X-Golf manages the Marketing Fund and maintains the brand's website, which includes information about franchisee locations. Additionally, X GOLF America, Inc. provides service and support for X-Golf simulators, currently at no extra charge. X-Golf reserves the right to require additional training programs for the Principal Executive or other employees, for which a reasonable fee may apply.
Franchise Requirements
Ideal Candidate Profile
X-Golf seeks franchisees who will designate a Principal Executive for their business. This Principal Executive must own at least 15% of the franchise (unless waived by X-Golf) and dedicate a minimum of 20 hours per week to the business. The Principal Executive is responsible for decision-making and must successfully complete X-Golf's initial training program, as well as any future post-opening training. They are also expected to make reasonable efforts to attend all required in-person and remote meetings, including regional or national brand conferences.
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
Limited
Territory Size Requirements
X-Golf typically defines its franchise territories as a 7-mile radius around the business location. However, for locations in densely populated urban areas, the territory may be smaller, less than one mile, and will be mutually agreed upon and specified in the Location Acceptance Letter.
Staffing Notes
X-Golf requires that each franchise location employ a full-time general manager who has successfully completed X-Golf's management training program. If a general manager leaves their position, X-Golf requires the franchisee to ensure a replacement general manager completes the necessary training within 90 days. Franchisees are solely responsible for all other hiring decisions and employment conditions for their staff.