It seems that the popularity and growth of indoor golf and golf simulators are unstoppable. Within a few weeks, I came across two indoor golf services. One is the Swedish RUFF Indoor Golf (7 locations), and the other is Five Iron Golf (18 locations, 11 cities).
If you have any doubts about this, let the numbers speak for themselves. The National Golf Foundation’s latest annual state-of-industry Graffis Report had a very interesting finding.
Namely, while on-course participation in golf increased by 2% from 2021 to 2022, off-course participation in the game rose by 13% in that same time period.
Do not think this is just in the US! Research led by The R&A, together with England Golf, Golf Ireland, Scottish Golf, and Wales Golf shows that 5.6 million on-course adult golfers – the 2nd-highest number since monitoring began over 30 years ago – enjoyed playing on full-length courses (9 or 18 holes) in GB&I last year.
Now I’d rather talk about Five Iron Golf (founded in 2017) for two reasons. The first is Callaway Golf took a $30 million minority stake in Five Iron Golf in November 2022.
Five Iron Golf is a privately-owned, urban indoor golf and entertainment company offering simulator rentals, golf lessons, custom club fittings, social events, and a curated food and beverage menu. Five Iron’s units are about 10,000- to 15,000 square feet.
All Five Iron Golf facilities feature world-class technology like simulators from TrackMan Golf, the latest club offerings from Callaway Golf, and a wide range of programming options to cater to the diverse needs and interests of its customers.
Five Iron Golf – Franchise Program
The second reason is Five Iron Golf has just launched its franchising program, opening up new avenues for expansion and growth both domestically and internationally.
Five Iron Golf’s expansion to a franchise model is similarly rooted in data, with early signs of success at its two current international locations in Singapore and New Delhi, India (opening this summer).
Jared Solomon, CEO and co-founder of Five Iron Golf says
“We’ve established strong relationships with trusted suppliers in the industry. Franchisees will have access to these supplier relationships, enabling them to source high-quality equipment, products, and services to deliver a consistent and outstanding experience at their own Five Iron Golf venues.”
Franchisee support is comprehensive and covers various aspects of the business, including
- development advice,
- operational playbooks,
- marketing expertise,
- business development, and
- partnership support.
Franchisees will have access to the knowledge and guidance of experienced professionals who have successfully navigated the challenges of establishing and operating Five Iron Golf venues.
In addition, franchisees will benefit from Five Iron Golf’s technology and enterprise systems, which have been refined and optimized to ensure seamless operations and an exceptional customer experience.
The current franchise investment range is set between $1.4 and $4.2 million, while initial franchise fees for a single-unit franchise are $50,000. The operating royalty fee is 7%.
Five Iron Golf plans to host its first discovery days in June and October, inviting prospective franchisees to tour existing operations and attend presentations from department heads and senior leadership.