Not sure if The Back Nine is right for you?
Talk to a Franchise Advisor who can match you with your perfect franchise based on your goals, experience, and investment range.
Talk to an Expert
The Back Nine
How much does The Back Nine cost?
Initial Investment Range
$276,050 to $603,550
Franchise Fee
$50,000
You will operate an indoor golf simulator business for the benefit of subscribing members and the general public under The Back Nine™ name and marks.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
The Back Nine April 17, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor, Back Nine Golf Group, LLC (B9GG), has a very concerning financial position. The 2024 audited financial statements show a net loss of over $1.26 million and negative members' equity of over $104,000, meaning liabilities exceed assets. The company appears heavily reliant on initial franchise fees for cash flow, which could signal an unsustainable business model and an inability to provide long-term support. This financial weakness presents a significant risk to your investment.
Potential Mitigations
- Your accountant must conduct a thorough review of the financial statements, including all footnotes, to assess the franchisor's solvency and sustainability.
- Discuss the franchisor’s plan to achieve profitability and fund ongoing support obligations with your financial advisor.
- An attorney should review any state-mandated financial assurance requirements, such as escrow or bonds, that may apply due to these financials.
High Franchisee Turnover
Medium Risk
Explanation
As a very young franchise system that began franchising in late 2022 and expanded in 2023, there is limited data available in Item 20 to establish a meaningful trend for franchisee turnover. Only one transfer is reported for 2024, with no terminations or cessations. While currently low, this data does not yet provide a clear picture of long-term franchisee satisfaction or success, which is a risk in itself.
Potential Mitigations
- It is critical to contact a broad range of current franchisees listed in Exhibit E to discuss their operational experience and satisfaction.
- In discussions with franchisees, your business advisor can help you formulate questions regarding their profitability and the quality of franchisor support.
- Your attorney should advise on the importance of speaking with the one former franchisee who transferred their outlet to understand the circumstances.
Rapid System Growth
High Risk
Explanation
B9GG is experiencing explosive growth. Item 20 shows the system grew from one to 28 outlets in two years, with 28 more agreements signed and an additional 59 projected for the next fiscal year. For a new franchisor with a very limited operating history and weak financials, this rapid expansion creates a significant risk that its support infrastructure, including training and site selection assistance, may be unable to keep pace, potentially leading to inadequate support for you.
Potential Mitigations
- A business advisor can help you question the franchisor about their specific plans and resources for scaling their support team to match this rapid growth.
- Ask current franchisees, especially those who opened recently, about the quality and timeliness of the support they are receiving.
- Your accountant should review the franchisor's financials to assess whether they have the capital to fund the necessary support infrastructure.
New/Unproven Franchise System
High Risk
Explanation
B9GG is a new and unproven franchisor, formed in late 2023, that acquired a very young system from a predecessor. The business model, while growing quickly, has a limited operational track record. This newness, combined with the financial instability shown in Item 21 and inexperienced management in franchising, increases the risk of system-wide challenges, underdeveloped support systems, and potential business model flaws. The franchisor explicitly flags its short operating history as a special risk.
Potential Mitigations
- Extensive due diligence is required; engaging a business advisor to research the concept's viability and management's background is crucial.
- Speaking with the earliest franchisees from the predecessor company is vital to understand the evolution of the system and its challenges.
- Your attorney may be able to negotiate more favorable terms, such as enhanced support commitments, to offset the higher risk of a new system.
Possible Fad Business
Medium Risk
Explanation
The business model centers on indoor golf simulators, a market segment that is currently growing but is also described in Item 1 as being in its infancy. There is a risk that this trend-based business could be a fad with limited long-term, sustainable consumer demand. If market interest wanes, your business could fail even if you are contractually obligated to continue operating and paying fees for the full 10-year term.
Potential Mitigations
- Conduct independent market research with a business advisor to assess the long-term viability and potential for sustained demand for this type of entertainment.
- Evaluate the franchisor's stated plans for innovation and adaptation to stay relevant beyond the current trend.
- Your financial advisor should help you create financial models that account for potential declines in consumer interest over the franchise term.
Inexperienced Management
High Risk
Explanation
The executive team described in Item 2, while having experience in business and law, appears to have limited direct experience in managing or operating a national franchise system. The CEO was an attorney until late 2023, and the COO's experience is in sales and account management. This lack of deep franchising expertise could pose a risk to the quality of system development, strategic direction, and the effectiveness of the support provided to franchisees.
Potential Mitigations
- A business advisor can help you assess whether the management team's skills are adequate for managing a rapidly expanding franchise system.
- During calls with current franchisees, it is important to ask specific questions about the quality of operational guidance and strategic leadership from the executive team.
- Inquire if B9GG has retained experienced franchise consultants or other seasoned personnel to compensate for the management team's limited franchising background.
Private Equity Ownership
Low Risk
Explanation
This specific risk was not identified in the FDD package. Private equity ownership can introduce a focus on short-term returns over long-term brand health, which may affect decisions on fees, support, and system sales. It is important to understand the franchisor's ownership structure and its potential impact on your investment.
Potential Mitigations
- Your attorney can help you research the franchisor's ownership structure and the track record of any parent investment company.
- A business advisor can help assess how the ownership structure might influence the franchisor's strategic decisions and support levels.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. Franchisors must disclose parent companies in Item 1. If a franchisor is a subsidiary of a larger company, failure to disclose the parent or its financial statements (if required) can hide financial instability or other risks. It is important for a franchisee to have a complete picture of the entire corporate structure they are joining.
Potential Mitigations
- Your attorney should always verify the franchisor's corporate structure to identify any undisclosed parent or controlling entities.
- If a parent company exists and provides guarantees, an accountant should confirm that its financial statements are included and properly audited.
Predecessor History Issues
Low Risk
Explanation
B9GG clearly discloses its predecessor, The Golf Studio, LLC, in Item 1. The FDD notes that the predecessor had no disclosed litigation or bankruptcies in Items 3 and 4, which is a positive sign. However, the predecessor's brief history of franchising (starting in late 2022) before selling the system to the newly-formed B9GG in late 2023 contributes to the overall risk of a new and unproven system.
Potential Mitigations
- In your due diligence calls, it would be beneficial to speak with franchisees who originally signed with the predecessor to understand their experience.
- Your attorney can help investigate the history of the predecessor company for any additional public records.
- A business advisor can help you analyze the implications of the rapid transition from the predecessor to the current franchisor.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package, as Item 3 states, "No litigation is required to be disclosed in this Item." The absence of a pattern of franchisee lawsuits alleging fraud or misrepresentation is a positive factor. However, Item 13 discloses a separate, significant trademark dispute which presents a different kind of legal risk.
Potential Mitigations
- Your attorney should still conduct independent searches for any litigation involving the franchisor, its predecessor, or its principals.
- It is important to ask current franchisees about any disputes they are aware of, even if not formally disclosed in Item 3.
- An accountant can review the financial statements for any notes related to legal contingencies, even if not disclosed in Item 3.
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
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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.
Related Recreation Franchises
American Poolplayers Association
$22,210.46 - $30,749.46
Big Air Trampoline Park
$2,501,500 to $4,572,500
Cornhole Golf
$212,000 to $868,000
Freedom Boat Club
$223,500 to $502,500
Nautical Boat Club
$503,700 to $902,250
PickleRage
$797,800 to $3,556,400
The Back Nine
$276,050 to $603,550
The Pickle Pad
$1,230,000 to $2,000,000