How Much Does A Topgolf Franchise Cost? + How Their Franchise Model Works

How Much Does A Topgolf Franchise Cost? + How Their Franchise Model Works 1

Topgolf has transformed the game of golf into a modern entertainment experience at its network of centers. 

Players can enjoy a unique driving range twist with electronic features, refreshments, and music. 

The use of microchipped golf balls and targets, along with large displays that show players their scores, makes the experience even more exciting. 

Visitors can also unwind in a lounge-like environment with a full bar and food menu. 

Topgolf is a popular destination for golfers and party-goers alike, as there are many activities to choose from at each location. Topgolf can even be considered the golf version of Disneyland.

The company has expanded internationally, with franchises in several countries, and plans for further growth. 

top golf aerial shot

For business owners seeking to diversify their portfolio, Topgolf presents an excellent franchise opportunity. 

This article will answer common questions about the Topgolf franchise, including:

  • Topgolf franchise costs,
  • Expenses involved in building a Topgolf franchise center,
  • Key factors in making your franchise a success!

let’s dive in!

TopGolf Success Story

TopGolf was founded in 2000 by two brothers, Steve and Dave Jolliffe, who were avid golfers and wanted to create a new way for people to enjoy the sport. 

They developed a prototype for a golf range with microchipped balls that could track the accuracy and distance of each shot, and they added a scoring system and games to make the experience more fun and competitive. 

top golf hole

The first TopGolf venue opened in Watford, UK, in 2000, and it was an instant success. 

The company expanded to the US in 2005, opening its first venue in Alexandria, Virginia. 

Since then, TopGolf has proliferated, with more than 70 venues across the US, UK, Australia, Germany, Mexico, Thailand, and the UAE, and plans to open more in the coming years. 

Opening a TopGolf franchise can be a lucrative investment for entrepreneurs interested in the brand. 

However, the TopGolf franchise cost requires a significant upfront investment that may only be feasible for some. 

About TopGolf Franchise

Before we dive into Topgolf franchise costs, it’s important to note that Topgolf is not a traditional franchise. 

The company does not offer franchise opportunities in the same way that many other businesses do. Instead, Topgolf owns and operates all of its locations. 

TopGolf is a wholly-owned subsidiary of Callaway Golf Company, a publicly-traded company. 

This allows the company to maintain consistent branding and customer experiences across its facilities.

While Topgolf doesn’t offer franchise opportunities in the traditional sense, the company partners with developers to bring new Topgolf locations to new markets. 

These partnerships involve licensing agreements that allow developers to build and operate new Topgolf facilities in exchange for a share of the revenue.

top golf tee

Topgolf Franchise Model

Topgolf’s franchise model is known as the “License Agreement.” Under this model, the licensee (franchisee) is granted the right to operate a Topgolf venue in a specific geographic location for a specified period. 

The licensee is required to pay an upfront fee and ongoing royalties to Topgolf.

Topgolf provides a turnkey solution to its licensees, including assistance with site selection, design and construction, training, marketing, and ongoing support. 

Licensees must also follow Topgolf’s standards and guidelines for operations, branding, and customer service.

Topgolf Franchise Costs

Opening a Topgolf franchise can be lucrative but requires a significant upfront investment. 

Topgolf franchise costs needed to open a venue vary depending on several factors, such as location, size, and market demand. 

top golf costs graph

Here is a breakdown of the estimated Topgolf franchise costs needed to open a venue:

Initial Franchise Fee

The initial Topgolf franchise cost for a Topgolf license agreement is not publicly disclosed. 

However, industry experts estimate that the fee can range from $1 million to $25 million, depending on the size and location of the venue.

This fee gives franchisees the right to use the Topgolf brand, systems, and processes and includes access to training and ongoing support from the Topgolf team.

Real Estate and Construction Costs 

Topgolf venues are typically located in high-traffic areas and require a large plot of land. 

Real estate costs can vary significantly based on location and market demand. 

The construction of a Topgolf franchise can range from $15 million to $65 million, depending on the venue size.

construction of top golf building

Equipment and Technology Costs

Topgolf venues have advanced technology and state-of-the-art golfing equipment, including golf bays, targets, golf balls, tracking systems, and audio-visual equipment. 

Topgolf franchise costs can add up to several million dollars.

The cost of equipment and technology can range from $5 million to $15 million, depending on the size and complexity of the venue.

Operating Expenses

Topgolf venues require a large staff, including food and beverage service, golf instructors, and maintenance staff. 

Once the venue is up and running, franchisees must cover ongoing Topgolf franchise costs for operating expenses such as employee salaries, food and beverage, marketing, and utilities. 

The cost of operating expenses can vary based on the size and location of the venue but can typically range from $1 million to $3 million per year.

virtual expenses

Royalties

In addition to the initial franchise fee, Topgolf franchisees must also pay ongoing royalty and advertising fees to the Topgolf corporate team. 

Topgolf licensees must pay ongoing royalties to Topgolf, which typically range from 3% to 5% of gross sales for royalties and 2% for advertising.

Overall, the total cost of opening a Topgolf franchise can range from $30 million to $100 million, depending on the location and size of the venue. 

The upfront investment required can be a significant barrier for many entrepreneurs.

What Else Is Needed For A Topgolf Franchise Venue

Local Knowledge

To ensure the success of a Topgolf venue, you need to have a deep understanding of the local market, including customer preferences, competition, regulations, and cultural nuances. 

It would be best if you tailor the venue to the needs and tastes of the local community while maintaining the quality and consistency of the Topgolf brand.

Passion for Golf and Entertainment

Topgolf is more than just a golf venue; it is a social and entertainment destination that attracts customers who want to have fun and connect with others. 

You must have a genuine passion for golf and entertainment and a desire to create a unique and memorable experience for your customers.

Business Acumen

Opening a Topgolf franchise venue requires strong business skills, including financial management, marketing, operations, and customer service. 

You need to develop and execute a business plan that can achieve profitability and sustainability while maintaining the high standards of Topgolf.

sparkling golf ball

Advantages of Owning a Topgolf Franchise Venue

Owning a Topgolf franchise comes with several advantages that can make it a lucrative and fulfilling business opportunity. Here are some of the key benefits of owning a Topgolf venue:

Strong Brand Recognition and Customer Loyalty

TopGolf is a well-established brand with a loyal customer base across the globe. 

By owning a Topgolf franchise venue, you can tap into this existing customer base and benefit from the brand’s strong reputation and recognition.

Multiple Revenue Streams

Topgolf venues can generate revenue from various sources, including golf, food and beverage, events, merchandise, and technology. 

This diversification of revenue streams can help reduce the risks associated with relying on a single source of income and increase profitability.

bar and drinks at Topgolf

Innovative and Unique Concept

Topgolf offers a unique entertainment experience combining golf, technology, and socializing. 

This innovative concept has proven highly popular among customers of all ages and skill levels, making it an attractive business opportunity.

Data-Driven Approach

TopGolf leverages technology to collect valuable data insights on customer behavior, preferences, and trends. 

Using this data, TopGolf can continually refine and optimize its operations and offerings to meet customers’ needs and drive revenue growth.

Comprehensive Support and Guidance

Topgolf offers its partners comprehensive support and guidance in opening and running a successful venue, including site selection, design, construction, training, marketing, and ongoing operations. 

This support can help partners overcome the challenges of starting a new business and maximize their return on investment.

Community Engagement

Topgolf venues have a strong focus on community engagement and giving back. 

Topgolf can build a positive reputation and goodwill in the local community by partnering with local charities, schools, and organizations, increasing customer loyalty and support.

In summary, owning a Topgolf franchise venue can offer a range of advantages, including a strong brand, multiple revenue streams, an innovative concept, a data-driven approach, comprehensive support, and community engagement.

These factors can make Topgolf an attractive and potentially lucrative business opportunity for those passionate about golf, entertainment, and entrepreneurship.

community

Topgolf Franchise Opportunities

TopGolf is currently seeking licensees to expand its brand globally. The company has identified several target markets, including Asia and South America. 

Topgolf is also exploring opportunities to expand its brand into new markets, such as hotels, resorts, and airports.

To become a Topgolf licensee, visit the company’s website and complete a franchise inquiry form. 

The company will review your application and contact you if you meet its criteria for a licensee.

Current Topgolf Franchise Locations

With a growing number of locations worldwide, Topgolf has become a popular destination for families, friends, and corporate events. 

Let’s take a look at some of the current Topgolf franchise locations and the ones that are coming soon:

USA Locations (States)
Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington
Coming Soon 
Rhode Island
International Locations 
United Kingdom, Australia, Germany, Mexico, Thailand, and the United Arab Emirates
Coming Soon 
China, Colombia, and Indonesia
top golf venue map

Check out topgolf’s CEO on Global expansion:

Topgolf Franchise: Key Takeaways

Topgolf is a leading entertainment venue that combines golf, technology, and entertainment to provide a unique and innovative experience for players of all skill levels. 

The company has achieved remarkable success quickly thanks to its innovative business model, technology, and branding. 

While Topgolf does not offer traditional franchising opportunities, it does offer a partnership model called Topgolf Venue Management, which allows local developers and investors to open new Topgolf venues under the company’s guidance and support. 

The cost of opening a Topgolf venue can vary widely depending on various factors, but it can range from $10 million to $50 million or more. 

The Topgolf Venue Management model offers several advantages for partners and Topgolf, allowing both parties to benefit from the growing demand for entertainment and experiential retail. 

With its strong brand, innovative technology, and dedicated fan base, Topgolf is well-positioned to continue its rapid growth and expansion in the coming years.

Check out our Driveshack vs. Topgolf head-to-head:

Photo of author
After graduating from the Professional Golf Management program in Palm Springs, CA, I moved back to Toronto, Canada, turned pro and became a Class 'A' member of the PGA of Canada. I then began working at some of the city's most prominent country clubs. While this was exciting, it wasn't as fulfilling as teaching, and I made the change from a pro shop professional to a teaching professional. Within two years, I was the Lead Teaching Professional at one of Toronto's busiest golf instruction facilities. Since then, I've stepped back from the stress of running a successful golf academy to focus on helping golfers in a different way. Knowledge is key so improving a players golf IQ is crucial when choosing things like the right equipment or how to cure a slice. As a writer I can help a wide range of people while still having a little time to golf myself!

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