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Golf VX
How much does Golf VX cost?
Initial Investment Range
$637,324 to $2,128,923
Franchise Fee
$25,000 to $30,000
The franchise that we offer is for Golf VX, a premier entertainment center featuring indoor golf simulators, indoor entertainment and tournaments, golf instruction, and a sports bar serving a menu of gourmet food and beverage accommodations.
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Golf VX April 18, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Golf VX Franchising, LLC (Golf VX) is a new company with no revenue and a net loss of over $95,000 in its first full year, funded entirely by capital contributions. This financial weakness, common for startups, presents a significant risk as it may affect the franchisor's ability to provide promised support, grow the brand, or even remain operational. The Maryland addendum requires initial fees to be deferred due to the financial condition, underscoring this risk.
Potential Mitigations
- Your accountant must conduct a thorough review of the audited financial statements and footnotes in Exhibit D to assess the franchisor's capitalization and burn rate.
- In discussions with the franchisor, your business advisor should help you inquire about their future funding plans and financial runway.
- It is important for your attorney to review any state-mandated financial assurances, like the deferral of fees mentioned in the Maryland addendum.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 20 shows no franchised outlets have been terminated, ceased operation, or been reacquired, as no franchises have operated yet. High franchisee turnover is a critical red flag in established systems, often indicating systemic issues like unprofitability, poor support, or franchisee dissatisfaction. You should monitor this data in future FDDs if you become a franchisee.
Potential Mitigations
- An experienced franchise attorney can help you understand how to interpret franchisee turnover data in future FDDs.
- If you were evaluating a system with turnover, a business advisor would recommend contacting a significant number of former franchisees to understand their reasons for leaving.
- Your accountant can help calculate the true turnover rate from Item 20 data to assess system health.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 20 indicates the system is new, with no franchises sold and only one company-owned unit projected to open. Therefore, the risk of support infrastructure being strained by rapid growth is not currently present. However, this could become a risk in the future if the franchisor begins selling franchises rapidly without proportionally increasing its support staff and resources.
Potential Mitigations
- You should ask the franchisor about their specific plans for scaling their support team as the system grows; a business advisor can help you evaluate their response.
- Your accountant can review future financial statements to see if the franchisor is reinvesting in support infrastructure.
- It is wise to maintain open communication with other franchisees to monitor the quality of support as the system expands.
New/Unproven Franchise System
High Risk
Explanation
Golf VX is a new franchisor, formed in late 2023 and beginning to offer franchises in 2024. The system has no operating franchises and only one company-owned store is in process. This lack of a track record for the franchise system itself, as distinct from any prior business of its managers, presents a significant risk regarding the viability of the business model, the effectiveness of the support systems, and overall brand recognition.
Potential Mitigations
- A thorough due diligence process is essential; your business advisor should help you scrutinize the business plan and the performance of the single company-owned location.
- Your attorney should investigate if the franchisor has met all state registration requirements, which can offer some protections for franchisees in new systems.
- An accountant should carefully review the franchisor's capitalization to assess its ability to fund operations until it achieves profitability.
Possible Fad Business
Medium Risk
Explanation
The business model is centered on indoor golf simulation, a technology-driven entertainment concept that has seen recent growth. While paired with a traditional sports bar, the core attraction could be subject to changing trends or technological obsolescence. There is a risk that the concept could be a fad with limited long-term, mass-market appeal, potentially impacting your business viability after the initial trend subsides. You should carefully consider its lasting power.
Potential Mitigations
- Engage a business advisor to research the long-term market trends for entertainment concepts like this, beyond the current hype.
- Discuss the franchisor's long-term vision and plans for innovation and adaptation to stay relevant with their management team.
- Your financial advisor can help you model different scenarios to assess the investment's resilience to shifts in consumer interest.
Inexperienced Management
High Risk
Explanation
The franchisor explicitly discloses in the 'Special Risks' section that they have no experience operating a franchise of this nature and almost no experience operating this type of business. Item 2 shows the principals' primary background is in the wireless industry, not hospitality, food and beverage, or golf entertainment. This lack of direct industry and franchising experience is a major risk, potentially affecting the quality of training, support, and strategic guidance you will receive.
Potential Mitigations
- A business advisor can help you assess whether the management team has hired experienced consultants or staff to compensate for their lack of direct experience.
- You should thoroughly question the franchisor about the specific qualifications of their support and training staff.
- Your attorney may be able to negotiate for enhanced support commitments in the Franchise Agreement given this disclosed inexperience.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 discloses ownership by Golf VX Corp., which is owned by two other corporations, but there is no indication that any of these entities are private equity firms. Private equity ownership can sometimes lead to a focus on short-term profits over the long-term health of the franchise system, but that specific risk does not appear to be present here based on the disclosures.
Potential Mitigations
- For any franchise, it is prudent to have your attorney investigate the ownership structure to understand who is making decisions.
- A business advisor can help you research the track record of a franchisor's parent company, if one exists.
- In any system, you should speak with existing franchisees about any changes in franchisor priorities or support levels over time.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 clearly discloses the parent company, Golf VX Corp., and its owners. While the parent company's financial statements are not included, the franchisor entity itself provides its own audited financials in Item 21. Since the franchisor is the entity you contract with, providing its own financials is the primary requirement. The financial weakness of the franchisor is a separate, significant risk.
Potential Mitigations
- Your accountant should always review the financial statements that are provided to assess the franchisor's stability.
- If a parent company guarantees the franchisor's obligations, your attorney should ensure the parent's financials are provided and that the guarantee is a formal, enforceable document.
- A business advisor can help you understand the relationships between the franchisor and its parent or affiliate companies.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 explicitly states that the franchisor has no predecessors. A predecessor is a company from which the franchisor acquired the major portion of its assets. Since this is a new company and system, there is no predecessor history to evaluate for potential issues like past litigation, bankruptcy, or high franchisee turnover.
Potential Mitigations
- When evaluating any franchise, your attorney should carefully review Item 1 for any disclosed predecessors.
- If a predecessor is disclosed, a business advisor would recommend researching the predecessor's history and reputation.
- In such cases, it would be wise to ask existing, long-term franchisees about their experience under any previous ownership.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses two significant lawsuits involving the company's principals. The Co-Chairman settled a case involving failure to comply with a bill of sale for franchise locations. The President is a defendant in a pending lawsuit alleging breach of contract and fraudulent concealment in an asset sale. This pattern of litigation involving the key individuals who control the franchise system is a serious risk, suggesting potential issues with their business practices.
Potential Mitigations
- Your attorney must carefully review the details of all litigation disclosed in Item 3 to understand the nature and severity of the allegations.
- A business advisor should consider this litigation history as a significant red flag when evaluating the integrity and character of the franchisor's management.
- Given the pending litigation, it is crucial to discuss with your attorney the potential impact on the franchisor's stability and management focus.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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