X-Golf offers an indoor golf and entertainment outlet that centers around the use of indoor golf simulators and also serves food and beverages in a fun and upbeat environment. Customers can play at some of the world’s top golf courses and choose from numerous game formats on the simulator machines.
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00:00 Introduction
00:57 Revenue
01:21 Locations
01:33 CEO, Ryan D’Arcy
01:55 Investment, Franchise Fee, Royalty & Marketing Fund Contribution
02:20 X-Golf Units
02:45 Conclusion
#XGolfFranchiseOpportunityFor2022 #VettedBiz
The first X-Golf Franchise Corporation began in 2015 and has since expanded to multiple locations across Texas, Alabama, Louisiana, Colorado, and Michigan. The current CEO is Ryan D’Arcy, who has been in that role since 2019. Previously, he served as Director of Franchise Operations and Director of Sales & Business development of both the X-Golf Franchise Corporation and its parent company, X-Golf America.
As of 2020, there were 24 franchised outlets and 0 corporate outlets.
X-Golf competes with other businesses in the arcade, food, and entertainment complexes industry, which recorded $1.6 billion in revenue in the past year and is projected to grow by 3.6% between 2021 and 2026. They compete most directly with other indoor and sports-related entertainment options such as sporting events, golf clubs, sports bars, and similar businesses. X-Golf’s main competitor in the golf-related entertainment space is Top Golf, which is set up as a driving range with outfield targets and serves food and beverages.
The initial X-Golf Franchise Fee is $30,000. You have to pay this upfront fee when opening an X-Golf franchise.
The estimated total investment necessary to begin operation of an X-Golf Franchise ranges from $547,200 to $916,000.
Royalty: 7% of gross sales
Marketing Fund Contribution: 1% of gross sales
Based on a midpoint investment of $731,600 with estimated profits of 116,914 ( 15.9% profit margin) it would take about 7 years to recoup your investment.
Based on a midpoint investment of $731,600 with profits of $19,403 (2.7% profit margin) it would take about 38 years to recoup your investment.
The X-Golf Franchise Corporation was profitable in 2020 with a net income of $156,059. This is up from $79,662 and $39,315 in 2019 and 2018, respectively. Net income has also increased as a percentage of total revenues in each of those years, reaching 27% of total revenue by 2020. The X-Golf Franchise Corporation has also seen a relative decrease in costs across this time period, getting down to 62% of total revenue.
In 2020, the X-Golf Franchise Corporation had a net income of $156,059, but their cash totaled $226,254, which is a 10% increase from the amount of cash they started the year with. However, net cash provided by operating activities decreased in 2020 to $22,401 from $190,829 in 2019.
X-Golf has seen franchise unit increases in each of the last three years, and the franchises on average have been profitable in recent years. However, the growth in new franchises has slowed and franchise profits decreased significantly in the most recent period. So while X-Golf franchises have been profitable in the past, the potential for the negative impacts of the pandemic on the arcade, food, and entertainment complexes industry to continue makes the outlook for the future for X-Golf franchises uncertain.
While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz.
Read here to learn more: https://www.vettedbiz.com/x-golf-franchise/
Want to speak with a franchise specialist about X-Golf or another franchise? Click here: https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw
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