ParMasters Golf Training Center Franchise
 
Start-up Budget for a Golf Training Center

 

PRELIMINARY START-UP BUDGET RANGE

PARMASTERS GOLF TRAINING CENTERS

ITEM

Minimum est.

Maximum est.

Leaseholds (click here for more info)

 

Interior fit and finish

 

 

 

Swing System Tee & Turf

 

 

 

Locker Room Area

 

 

 

Short Game Area

$20,330

$946,712

Equipment

 

Opportunity Room

 

 

 

Training Room

 

 

 

Swing Center

 

 

 

Motivation Room Equipment

 

 

 

Virtual Reality Golf (3 sets)

 

 

 

Office Equipment

 

 

 

Food Area Equipment

 

 

 

Pro Shop

$86,600

$776,000

Initial Inventory

 

Golf Balls

 

 

 

Custom Golf Clubs

 

 

 

Mental Training Tools

 

 

 

Apparel

 

 

 

Miscellaneous

$8,000

$62,500

Initial Promotional Materials

 

Rack Cards

 

 

 

Postcards

$6,000

$20,000

Opening Marketing Investment

 

Launch marketing

$24,000

$48,000

Training Costs (@ Team HQ)

 

10 days @ HQ, inc. travel,

 

 

 

accommodation & food

$0

$0

Insurance

 

Building and Liability

$4,000

$20,000

Professional Services

 

Legal

 

 

 

Accounting

$5,000

$9,500

Security Deposits

 

Building and Utilities

$10,000

$75,000

Franchise Fee

 

Individual Territory Franchise

$25,000

$45,000

Working Capital

 

 

$80,000

$504,000

 

Total

 

$274,430

$2,537,712

Leasehold Improvements:

The Golf Training Center land and building will ordinarily be leased rather than owned, although you are permitted to buy them if you so desire.  Some or all of the building leasehold improvements may also be leased from a landlord if a suitable landlord and site is found. 

Parmasters estimates that the average Golf Training Center will have approximately 2,000 to 35,000 square feet.  Your initial investment for leasehold improvements,  will vary depending upon local labor and materials costs.  These variables affect how different obligations will be distributed between landlords and tenants under different lease agreements and the costs of acquisition and construction.  Although the cost of leasehold improvements will vary depending upon the above-described factors, we estimate that the average cost of leasehold improvements will range between $20 and $60 per square foot. Note, you may want to pay for some or all of these leasehold improvements in order to lower your monthly lease costs. 

Landlords may pay a tenant finish-out allowance as a cash incentive to do business with them. This payment will reduce or eliminate your leasehold improvements, and varies greatly on market conditions, but will range from $5 to $20 per square foot. This would result in a net investment (after finish-out allowance) for you of between $20 and $35 per square foot.

Note, at further Stages in our Franchise Awarding Process we have will share much more detailed financial budgets, by investment model. This is intended merely to give you a feel for the range and scope of investment options.

 

 
 
 
   
© Aegis Investment Management (Golf), Inc. 2010. Listed on the TSX-Venture Exchange, symbol AIM.V