Golf Envy Logo

Golf Envy

Golf Envy Franchising, LLC
https://www.golfenvy.com/
1-714-248-6130
55 Peters Canyon Road, Irvine, California 92606

Initial Investment Range

$236,800 to $636,800

Franchise Fee

$79,000 to $300,500

We offer qualified individuals the right to operate a membership-based indoor golf facility (each a “Club,” or “Franchised Business”) that offers its members 24/7 access to state-of-the-art golf simulator bays for playing full rounds of golf, participating in tournament play, and improving members’ skills.

Enjoy our complimentary free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Golf Envy April 21, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Golf Envy Franchising, LLC (Golf Envy) explicitly warns that its financial condition calls its ability to provide support into question. The audited financials in Exhibit D confirm this, showing a net loss of over $147,000 and minimal members' equity of approximately $82,000 as of year-end 2024. This financial weakness could significantly impair its capacity to fulfill its obligations to you and grow the brand, posing a substantial risk to your investment.

Potential Mitigations

  • Your accountant must conduct a thorough analysis of the franchisor's financials, including cash flow and reliance on initial fees versus ongoing royalties.
  • Discuss the franchisor's capitalization and plans for achieving profitability with your financial advisor to gauge long-term stability.
  • It is critical to ask your attorney about any state-mandated financial assurances like bonds or escrow requirements due to these weak financials.
Citations: Special Risks, Item 21, Exhibit D

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified. As a new franchisor that began operating in 2024, Golf Envy has no history of franchisee terminations, non-renewals, or other cessations to report in Item 20. While this means there is no negative turnover data, it also signifies a lack of operational history for the franchise system, which presents its own set of risks related to the unproven nature of the brand's franchise model.

Potential Mitigations

  • Your business advisor should help you evaluate the risks of joining a new system with no franchisee performance track record.
  • It is important to speak with the two franchisees who have signed agreements but not yet opened to understand their perspective.
  • Ask your attorney to scrutinize the termination and renewal clauses in the Franchise Agreement, as these will govern future turnover.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package. As a new franchisor with only two affiliate-owned outlets and two signed (but unopened) franchises, Golf Envy is not experiencing rapid system growth. The primary risk is its newness, not that its support infrastructure is currently strained by expansion. Monitoring growth against the franchisor's resources will be important in the future.

Potential Mitigations

  • Your business advisor can help you create benchmarks to monitor future growth against the franchisor's hiring and support system development.
  • In discussions with the franchisor, inquire about their strategic plan for scaling support infrastructure as the system grows.
  • Consulting your accountant to periodically review the franchisor's future financial statements can help assess their ability to support new units.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

Golf Envy is an unproven, startup franchisor, formed in May 2024. It has no operating history as a franchisor and there are no open franchised locations. The company explicitly discloses its 'Short Operating History' as a special risk, making it a riskier investment. Its financial statements show a significant net loss and reliance on initial owner contributions. This newness means the systems, support, and overall business model for franchising are untested in the real world.

Potential Mitigations

  • A thorough due diligence process, guided by your franchise attorney and business advisor, is essential to vet this startup opportunity.
  • Have your accountant perform a detailed analysis of the financial projections, given the lack of historical franchisee performance data.
  • It is advisable to speak with the two existing affiliate-owned locations to understand the core business model's operations and challenges.
Citations: Special Risks, Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Medium Risk

Explanation

The business model centers on membership-based indoor golf simulators, a growing but potentially niche market. The long-term, mainstream sustainability of such concepts is not as established as more traditional businesses. There is a risk that the model's popularity could be tied to current trends rather than enduring consumer demand, which could impact your business's viability over a 10-year franchise term. The market is described as 'less well-developed', adding uncertainty.

Potential Mitigations

  • Engage a business advisor to conduct independent market research in your local area to gauge long-term demand for this specific service.
  • Evaluate the business's adaptability and potential for offering diversified revenue streams beyond the core simulator experience.
  • Carefully analyze the competitive landscape, including traditional golf courses and other entertainment venues, with your marketing advisor.
Citations: Item 1, Item 9

Inexperienced Management

Medium Risk

Explanation

The FDD in Item 2 indicates that the CEO and founder, Ryan Wines, has a background in the automotive industry but no direct experience in franchising or the indoor golf industry. While the COO, Cole Arranaga, possesses relevant franchise experience, the lack of franchise-specific expertise at the highest level of leadership presents a risk. This could affect strategic decisions, system development, and the quality of support provided to you.

Potential Mitigations

  • Your business advisor should help you evaluate the strength of the entire management team, particularly the COO's role and influence.
  • During discussions with the franchisor, you should inquire about how they plan to compensate for the CEO's lack of direct franchise experience.
  • It is wise to ask existing affiliate location managers about the quality and nature of the operational guidance they receive.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 discloses that the franchisor is owned by Zeze Holdings, LLC and its individual members, not by a private equity firm. Therefore, the specific risks associated with a PE firm's typical investment horizon and focus on short-term returns are not present. However, you should remain aware that the ownership structure could change in the future.

Potential Mitigations

  • Your attorney should review the assignment clauses in the Franchise Agreement to understand how a future sale of the company could affect you.
  • In your due diligence, asking the franchisor about their long-term vision and commitment to the brand is a prudent step.
  • A business advisor can help you research the background and track record of the current owners.
Citations: Item 1

Non-Disclosure of Parent Company

High Risk

Explanation

The franchisor discloses its parent company, Zeze Holdings, LLC, in Item 1. However, the parent company was also recently formed and has no operating history. Furthermore, the franchisor's financials in Item 21 show it is thinly capitalized, with a significant net loss and a heavy reliance on a loan from its licensor affiliate. No parent company financials are provided to demonstrate a strong financial backing for the new venture, which elevates risk.

Potential Mitigations

  • Your accountant should carefully analyze the franchisor's balance sheet and its dependency on affiliate loans and member contributions.
  • It is important to ask your attorney about the implications of the lack of a parent company guarantee for the franchisor's obligations.
  • A financial advisor can help you assess the overall financial risk profile of investing in a thinly capitalized startup without a strong parent.
Citations: Item 1, Item 21, Exhibit D

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. According to Item 1, Golf Envy is a new franchisor and does not have any predecessors. Therefore, there are no historical issues related to predecessor entities to consider. Your due diligence should instead focus on the risks associated with the franchisor's own limited operating history and that of its affiliates.

Potential Mitigations

  • A franchise attorney can confirm the absence of any undisclosed predecessors through a corporate records search.
  • Focus due diligence efforts on the current management team's experience and the performance of the affiliate-owned locations with your business advisor.
  • Your accountant should scrutinize the franchisor's own startup financial data, as there is no predecessor history to analyze.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that there is no litigation required to be disclosed. As a startup franchisor that has not yet had any franchisees in operation, this is expected. It is important to remember that a clean litigation history is common for new systems and does not guarantee that disputes will not arise in the future.

Potential Mitigations

  • It would be prudent to have your attorney conduct a public records search to confirm the accuracy of the disclosure.
  • You should discuss the dispute resolution clauses in the Franchise Agreement with your attorney to understand how future conflicts would be handled.
  • Speaking with the earliest franchisees once they are operational will be key to understanding if disputes are emerging.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
4
6

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.

3

Financial & Fee Risks

Total: 10
4
5
1

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.

4

Legal & Contract Risks

Total: 16
6
7
3

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.

5

Territory & Competition Risks

Total: 5
5
0
0

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.

6

Regulatory & Compliance Risks

Total: 10
5
3
2

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.

7

Franchisor Support Risks

Total: 4
2
2
0

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.

8

Operational Control Risks

Total: 12
4
7
1

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.

9

Term & Exit Risks

Total: 18
11
6
1

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.

10

Miscellaneous Risks

Total: 1
1
0
0

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.