Topgolf Franchise Cost & Fees | How To Open (2024)

FAQs

How much does it cost to franchise Topgolf? ›

How much does the Topgolf franchise cost? Topgolf has a total initial investment range of $15 to $50 million. All inquiries for initial franchise and royalty fees, ad fees, net worth requirements, liquid cash requirements can be submitted to Topgolf Entertainment Group. Initial Investment: $15 - $50 million.

As a Topgolf franchise owner, you can easily make $17 million in revenue on average and $5 million in net profit on average, which is an amazing sum of money as compared to other franchises.

How much does it cost to start your own franchise? Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.

Topgolf Venue Breakdown & Economics

Most of these venues (75%) have 100+ bays and cost $30 to $40 million to build. They then generate between $20 to $28 million in annual revenue, targeting a cash-on-cash return of 50% to 60% and an estimated payback period of just 2.5 years.

On average, typical franchisees make about 80,000 dollars a year, not considering tax and expenses. Only a small part of franchise owners make over $200,000 annually, more than fifty percent of franchisees make about $50,000. The industry you're operating in impacts the amount of profit as well.

By comparison, Topgolf's existing facilities have cost $15 million to $50 million, and need a minimum of 13 acres.

The estimated total pay for a Bay Host at Topgolf is $20 per hour. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $16 per hour. The estimated additional pay is $4 per hour.

As of Jun 22, 2023, the average annual pay for a TopGolf Server in the United States is $24,640 a year. Just in case you need a simple salary calculator, that works out to be approximately $11.85 an hour. This is the equivalent of $473/week or $2,053/month.

It's a royalty. Franchise royalties are usually collected by your franchisor on a monthly basis. Like marketing fees, these fees are based on a percentage of your revenue.

Do franchise owners keep profits? ›

As a franchisee, you earn money from the franchise's profits. This means that after your overhead costs are covered, you can draw a salary from the remaining profits. Most franchises have a series of expenses to consider.

Warning. Buying a franchise might seem like easy money, but those royalties and fees will quickly cut into profit margins. The majority of franchise owners earn less than $50,000 per year.

"We are pleased to announce the successful completion of our debt refinancing, which simplifies and strengthens our capital structure while maintaining modest net leverage and increasing our liquidity by over $300 million," said Brian Lynch, Chief Financial Officer and Chief Legal Officer at Topgolf Callaway Brands.

"It takes eight to 10 months to build," Wallace said in an email.

Topgolf Callaway Brands

Topgolf / Parent organization

Callaway, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets and sells golf equipment, more specifically clubs and balls, also including accessories such as bags, gloves, and caps.

Wikipedia

Many franchisees make millions of dollars by running multiple locations. Some of them are large corporate entities running hundreds of units, sometimes from multiple brands. It's up to you to set your own financial goals.

Buying a franchise doesn't have to mean making a full-time commitment. Believe it or not, there are many franchises that can be run on a part-time basis, especially when you first start out.

While operating a Chick-fil-A restaurant requires a relatively modest $10,000 initial financial commitment ($15,000 CAD in Canada), it requires a holistic commitment to own and operate the business in a hands-on manner. We are in the restaurant industry - the quick-service restaurant industry, at that.

How big of a lot do you need for Topgolf? ›

According to Aria Group Architects, Inc., an average Topgolf venue is 65,000 square feet that is 3 stories high with an indoor and outdoor venue.

1. Marvel Cinematic Universe. The overall highest-grossing franchise by almost $6 billion, the Marvel Cinematic Universe is an immortal giant that towers over all other franchises mentioned here.

A widely publicized statistic from a 1987 International Franchise Association (IFA) study showed that franchises have a failure rate of 5% (which would equate to an unbelievable success rate of 95%).

$14. The estimated total pay for a Dishwasher at Topgolf is $14 per hour.

TopGolf Costs and Revenues

Callaway's 2021 fourth quarter earnings presentation offers some insights into the costs associated with opening a TopGolf venue. Construction of a TopGolf venue typically costs from $10 to $40 million, and each venue typically collects about $17 million in revenue annually.

Average Topgolf Cook hourly pay in California is approximately $18.00, which is 28% above the national average.

How much does a Bartender make at Topgolf in the United States? Average Topgolf Bartender hourly pay in the United States is approximately $12.78, which is 10% below the national average.

Playmaker Perks include FREE mental well-being program including therapy sessions for everyone and their immediate family, FREE Topgolf game play, 50% off food and beverage, Apparel & Merch discounts, we're closed on Thanksgiving and Christmas Day, Topgolf Cares (a non-profit designed to help Playmakers in time of ...

NEW YORK, June 23, 2021 /PRNewswire/ -- Eric Valdivieso, a native New Yorker, has been widely recognized by leading figures in the hospitality industry, as an icon. He is the world's highest-paid server, regularly earning in excess of $100,000 every year, serving customers in restaurants and hotels in NYC.

Do you pay franchise fee yearly? ›

In summary, you're only required to pay your initial franchise fee when you sign your franchise agreement. This is a one-time payment that gives you a license to own and operate your franchise business for an agreed upon number of years.

The Franchise Fee (also called the “initial franchise fee”) is the one-time payment made by a franchisee to the franchisor for joining the franchise system, usually upon signing the Franchise Agreement.

What Is The Typical Length Of A Franchise Agreement? The typical length of a franchise agreement is between five and 20 years. A common reason for this general length of time is often the size of the franchisee's initial investment, though market conditions and the type of franchise can also be factors.

Like starting any business, buying a franchise involves risk. Although most franchisees are satisfied and successful, some do suffer financial losses. That's why you must be particularly wary of any company that “guarantees” profit or certain success.

The main disadvantage of buying a franchise is that you must conform to the rules and guidelines of the franchisor. Some franchisors exert a degree of control that you, as a supposedly independent business owner, may find excruciating.

Owning a franchise unit can be demanding, requiring work of 60 to 70 hours a week, but owners have the satisfaction of knowing that their business's success is a result of their own hard work. Some people look for franchise opportunities that are less demanding and may only require a part-time commitment.

On average, businesses take two to three years to become profitable. However, many factors determine profitability — while some small businesses fail within the first year, others with low start-up costs can even be profitable in the first year.

Paired with an outstanding food and beverage menu, climate-controlled hitting bays and music, every Topgolf has an energetic hum that you can feel right when you walk through the door.

Q1 earnings: Strong growth at Topgolf and apparel

In the first quarter, Topgolf's revenue grew 25% year over year to $403.5 million, driven by new venue openings and strong 11% same-venue sales growth. Apparel -- led by the TravisMathew and Jack Wolfskin brands -- grew revenue 28% year over year to $320 million.

What is Topgolf credit rating? ›

S&P Global Ratings affirms Topgolf Callaway Brands at "B+" (Foreign Currency LT credit rating); outlook stable. S&P Global Ratings affirmed the "B+" Foreign Currency LT credit rating of Topgolf Callaway Brands on March 6, 2023.

How much does the Topgolf franchise cost? Topgolf has a total initial investment range of $15 to $50 million. All inquiries for initial franchise and royalty fees, ad fees, net worth requirements, liquid cash requirements can be submitted to Topgolf Entertainment Group. Initial Investment: $15 - $50 million.

Artie Starrs (Apr 5, 2021–)

Topgolf / CEO

If six people are playing, it typically takes 1-1.5 hours to play a full game – we recommend starting with one or two hours and then you can easily add time right there in your bay if you'd like to extend (and if you're playing with friends – it's easy to split the cost of the additional time between players).

Do you close due to weather? Unless it's an extreme weather event, nothing can stop a good time at Topgolf, not even rain or snow. Our venues are all-weather facilities with covered hitting bays that are fitted with fans for the summer and heaters for the winter.

Topgolf Callaway Brands' CEO is Chip Brewer, appointed in Mar 2012, he has a tenure of 11.25 years. His total yearly compensation is $11.03M , comprised of 9.5% salary and 90.5% bonuses, including company stock and options. He directly owns 0.74% of the company's shares, worth $26.32M.

According to Topgolf Callaway Brands Corp's latest financial reports the company's gross margin is 61%.

Current and historical operating margin for Topgolf Callaway Brands (MODG) over the last 10 years. The current operating profit margin for Topgolf Callaway Brands as of March 31, 2023 is 2.92%.

TopGolf Costs and Revenues

Callaway's 2021 fourth quarter earnings presentation offers some insights into the costs associated with opening a TopGolf venue. Construction of a TopGolf venue typically costs from $10 to $40 million, and each venue typically collects about $17 million in revenue annually.

The gross profit margin is a measure to show how much of each sales dollar a company keeps after factoring in cost of goods sold. For example, if a company has a gross profit margin of 75 percent, then for every $1 in sales, the company will keep 75 cents.

What has the highest profit margin? ›

According to a data collected by Statista, regional banking has the highest profit margin of any American industry as of January 2023, with a profit margin of 30.31%.

You may be asking yourself, “what is a good profit margin?” A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.

How Much Does A McDonald's® Franchise Cost?* Most McDonald's franchise owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald's franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.

Startup costs for Chick-fil-A franchises are relatively low. That's because, unlike other franchises, Chick-fil-A actually purchases the real estate and all of the equipment required to open the business, and then leases them to you via monthly rent payments.

Franchising fee: It costs between $25,000 and close to $50,000 for the initial franchise fee. This, too, will vary depending on the details of your specific Taco Bell franchise. Net worth: The current net-worth requirement is around $1.5 million worth of assets.

Topgolf Callaway Brands

Topgolf / Parent organization

Callaway, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets and sells golf equipment, more specifically clubs and balls, also including accessories such as bags, gloves, and caps.

Wikipedia