ParMasters Golf Training Center Franchise
 
What Are The Biggest Risks?

Risk Assessment

In this section we explore the six biggest risks we face in building the vision we have at Parmasters.

Most franchises don't want to explore their weaknesses, let alone post them on a website for all to read.

We believe that being aware of our strengths and weaknesses is much better than attempting to ignore or avoid them.

We trust that you will agree, and once again happy reading. And feel free to ask us more detailed questions on any of these risks and strategies to counter them.

#1 Market Risks

The concept has already been proven to fill a need in the marketplace, however there is some risk that there may not be enough demand to sustain a franchising network as large as indicated in our trading area analysis.

This risk would be offset by the introduction of new products to reach different market segments and by penetrating the existing target markets more deeply.

Our eight revenue streams were developed as a conscious effort to expand our market reach while keeping our uniqueness.

#1 Product Risks

There are other golf and golf training systems and products out there and it would be foolish to assume that no other company would start to offer one-on-one training in a similar format. The risk would be that they would begin to offer their product through a franchise format and begin marketing it in a similar method to ours.

To minimize this risk, Parmasters will need to continually update its products and expand its golf training system offerings to ensure that it can remain differentiated from the competition. This continuous improvement is an integral part of the Puckmasters systems, on which the Parmasters business systems will be based.

We also need to continually improve our indoor golf training systems.

While we opened our first Parmasters Golf Training Center in 2006 the amazing indoor golf training system has been taught by Parmasters Co-founder and Chief Golf Professional, Scott Hazledine, for more than ten years.

His private three day camps have been running for years, offering a guaranteed forty percent reduction in handicap!! Not a single person has asked for their money back. Not once.

In fact the results to date using Straight-Line Golf™ have literally been stunning.

But don't just take our word for it. The following are some of the dozens of testimonials Scott has received over the years, including several that received amazing results just from his indoor golf training system and videos! Click here to read them.

#3 Corporate Risks

There currently is a risk of lack of experienced and committed full-time personnel to properly manage the company. This could result in a lack of support to Individual Franchise Owners and Regional Franchise Owners and would lead to slow or no growth.

To mitigate this risk, this very plan involves funding that team from the very beginning, and a plan to expand that funding as we grow. If we build too large of a team, too fast, that carries additional risk, so we believe a balanced approach is prudent.

Going public in January, 2010 has also helped our ability to finance, and expand our team.

#4 Golf Center Owner Risks

Center Owners may fail to achieve expected results for a variety of reasons:

  • failure to market the business;
  • lack of funds to cover start-up costs;
  • poor customer service;
  • failure to follow existing systems;
  • poor financial management; poor time management;
  • and poor screening in the beginning by Team Headquarters.

To minimize these risks an extensive system for awarding and supporting Individual Center Owners has been put in place.

In addition an extensive Center Management Plan has been created to allow for a team of assistant managers to help run the Center, providing a broader base of energy and support for the Center.

#5 Regional Sports Franchise Ownership Risks

There are certain risks involved in regional sports franchise ownership.

Awarding Regional Sports Franchises to individuals that are not self-motivated or driven to succeed will jeopardize the growth of a given Region. In addition, if any of the Regional Franchisors develops an attitude that does not nurture and support their Individual Sports Franchise Owners, resentment will build and slow their growth.

To minimize this risk, Regional Franchisors are required to invest significant capital, and are very thoroughly screened to ensure values that match Parmasters.

In addition thousands of pages of support manuals were developed before we launched our company so that we have extensive systems already in place to support the Individual Sports Franchise Owners from day one.

#6 Competition

We have two areas of competition, franchise and golf. To explore each scroll down, or jump to the link below:

Sports Training Franchises

Direct Competition – see the list in the table below

       
  Golf Training Franchises  
  Company Website  
  Bogart Golf www.bogartgolf.com  
  Golftec www.golftec.com  
       
  Golf Retail Franchises  
  Company Website  
  Nevada Bobs www.nevadabobs.com  
  Pro Golf Discount www.progolfdiscount.com  
  International Golf Discount www.intlgolf-ent.com  
  Las Vegas Discount Golf & Tennis www.lvgolf.com  
  Golf Etc. www.golfetc.com  
  Golf USA www.golfusainc.com  
       
  Golf Franchises - other  
  Company Website  
  Body Balance for Performance www.fitgolf.com  
  Putt Putt Golf Courses of America www.puttputt.com  
  The Club Tub www.clubtub.com  
  Global Leaderboard www.globalleaderboard.com  
  Southwest Putting Greens www.southwestgreens.com  
  The Mulligan Tour www.mulligantour.com  
  ProTracGPS www.protracgolf.com  
  US Hold The Green Challenge www.usholdthegreen.com  
       

 

Indirect Competition

Dozens of sports-related franchises exist, although we have identified eight specific indirect competitors at this time.

American Poolplayers Association Inc., Saint Louis, MO

Body Balance for Performance, La Crescenta, CA

Curves for Women, Waco, TX

Fred Astaire Franchise Dance Studios, Boca Raton, FL

It’s About Games, Minneapolis, MN

Power Kickbox, Austin TX

Puckmasters Hockey Training Centers, Vancouver, BC

Women’s 17 Minute Workout, Inc., Canton, OH

Golf Training and Products

Direct Competition

Our direct competitors in the golf training industry would be the club pros.

The advantages we have over Club Pros include:

  • Proven results (ten years of success by our Chief Golf Professional, teaching this method to hundreds);
  • Less intimidating ( a supportive, friendly, environment);
  • More fun (no criticism allowed, pure positive reinforcement makes learning fun);
  • Taught by someone who learned in less than a year (why learn from someone that took years to learn to golf well when our instructors have learned in less than a year);
  • Straight line shots virtually every single time (our system uses a method of anatomical certainty to guarantee straight shots);
  • Perfect for those with back, leg, arthritis problems (much less strenuous twisting and torque on your back); and
  • Guaranteed results (twenty-five percent reduction in handicap within six months).

Indirect Competition

Eventually, as Parmasters expands to deliver other golf related products, the competitors will expand to include any companies selling similar products.

The competitive advantages that Parmasters offers include:

  • One-of-a-kind personalized training format;
  • Unique and proven marketing methods;
  • Ethical licensing and socially responsible business practices;
  • Strong support of a franchise system;
  • Proven successful marketing strategies; and
  • Exponential growth of Puckmasters as benchmark track record, and learning from our mistakes made there.

Ultimately, what we believe will allow us to be a successful franchise company is:

  • Our proven track record with golf training using our Straight-Line Golf™ system over the last ten years by our Chief Golf Professional, Scott Hazledine;
  • Our proven track record with franchising opportunities with previous joint venture partners;
  • Our unique, targeted marketing approach;
  • Our experienced management team;
  • Our solid and extensive system of Franchise Owner support;
  • Our extensive Operations and Training Manual systems.
  • Our commitment to quality and constant improvement; and
  • Our commitment to outstanding customer service.
 
 
 
   
© Aegis Investment Management (Golf), Inc. 2011. Listed on the TSX-Venture Exchange, symbol AIM.V