Topgolf has proven to be a very lucrative franchise enterprise. The company made around $1.1 billion in revenue in the year 2019 and $158 million in net income in the year 2022. A Topgolf franchise location can make around $21.5 million in revenue, but to start a Topgolf franchise, you will have to put in a massive investment of $15 million – $50 million and satisfy other requirements as well.
TopGolf is renowned as a first-class technology-enabled golf company that strives to bridge the gap between socializing and sports.
The TopGolf experience centers around their climate-controlled bays where you tee off and aim for outfield targets. You will also love the music, food, and drinks they provide. Also note that they make available event catering packages that are super ideal for birthday parties, company events, and fundraisers.
Each Topgolf location tends to make around $17 million in annual revenue. This is the average income that can be made per location over the course of 1 year. Also note that if a location or venue is properly managed, it is possible that it can generate over $25 million easily.
Currently, TopGolf owns and operates their U.S. and U.K. venues. Nevertheless, there are franchised locations in Australia, Mexico, and the U.A.E. and there are franchise expansion plans in central Europe and Asia. If you are looking to purchase a TopGolf international franchise, you will be expected to complete TopGolf’s international franchisee inquiry form.
Factors That Determine How Much Topgolf Franchises Make Yearly
Same as with most franchises, Topgolf Franchise owners pay for the opportunity to conduct business in a defined site or region. Owing to that, the competitive landscape in the location you intend to do business will influence your revenue as a Topgolf Franchise owner.
For instance, if yours is the first unit of a Topgolf franchise to start in an unfamiliar area, it might take some time to establish a standard customer base, nonetheless, you will have very few rivals.
Years of operation
Have it in mind that the Topgolf franchise with the best income or revenue tends to be those that have been successfully started and managed in their corresponding jurisdiction for years and may own more than one unit.
Howbeit, note that spending patterns have shifted significantly in subsequent years, and innovative expectations are becoming very pertinent, especially among modern users. As such, starting a Topgolf franchise to satisfy an emerging necessity in your neighborhood may be a sure bet from the start.
This is another factor that will determine how much a Topgolf franchise can make in a year. You should know the level of demand for Topgolf’s services in your location.
Have it in mind that solid demand for golf entertainment experiences in the area will in many ways guarantee better business income. Don’t also forget to take into consideration other similar businesses in the area and how they partake in sharing the market.
Don’t forget that a higher level of competition will mean that you have to put in more effort and resources in marketing, pricing strategies, and customer experience to draw in and retain customers.
This is one thing to take into account especially since the efficient management of a Topgolf franchise will mean better income for the business. A Topgolf franchise manager with sturdy corporate qualifications is much more able to bring in more revenue when out in comparison with someone who lacks those attributes.
Have it in mind that managing, sustaining, and controlling a robust working population is, without doubt, an important aspect of possessing a financially viable Topgolf franchise.
Facility size and capacity
A good number of Topgolf Franchise owners tend to start with one unit; nevertheless, several wealthy owners still love to broaden or even enter into a contract with Topgolf to start a certain number of units within a particular period of time. Your revenue capability will rise if you operate numerous fruitful units in the future.
Also have it in mind that a bigger facility with more bays and amenities will contain more customers, play host to bigger events, as well as bring in better revenues. Nevertheless, don’t forget that the operational costs associated with maintaining a bigger facility will also be larger.
Pricing and revenue stream
Have it in mind that the pricing structure of a Topgolf franchise will have a say in how much the business generates. Also, understand the importance of the right marketing and advertising strategies. Engaging with the local community, hosting events, and making use of digital marketing channels will most definitely aid in drawing in a larger client.
Topgolf is a top-class high-tech golf franchise that necessitates a gigantic investment to start and operate; however, this also makes the potential of making high profits very encouraging too. Even though the amount of Topgolf locations is not much, it comes with a global presence still.
Currently, the company is not seeking to franchise and prefers to focus on its existing Topgolf locations, which is the reason for its success. But if the company starts considering expanding and taking in franchisees again, then you can apply and make good money.