About The Back Nine Franchise
The Back Nine is an indoor golf simulator franchise offering a 24 hour facility equipped with Full Swing simulators, club fitting services, golf lessons, and event space for parties and private functions.
Franchising since 2023, the brand caters to subscribing members and the general public who want year round access to golf in a premium indoor environment.
The initial franchise fee is $50,000.
The Back Nine Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 7% of monthly Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of monthly Gross Revenues (Brand Marketing Fund), up to 1% of monthly Gross Revenues (Local Advertising Requirement) | National brand fund |
| Total Investment Range | $208,117 – $438,117 | Includes build-out, inventory, working capital |
The investment range of $208K–$438K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of monthly Gross Revenues) and marketing fee (1% of monthly Gross Revenues (Brand Marketing Fund), up to 1% of monthly Gross Revenues (Local Advertising Requirement)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Travel expenses while training | $1,000 | $5,000 |
| Real Estate Improvements | $5,000 | $40,000 |
| Signage | $5,000 | $10,000 |
| Equipment | $101,050 | $201,050 |
| Miscellaneous Supplies | $3,000 | $3,000 |
| Initial Supply of Advertising Materials | $3,000 | $3,000 |
| Premises Deposit | $2,000 | $9,500 |
| Rent (3 months) | $6,000 | $28,500 |
| Internet/Utilities (3 months) | $1,800 | $2,400 |
| Furniture | $5,000 | $15,000 |
| Business Licenses and Permits | $100 | $1,500 |
| Insurance | $667 | $1,167 |
| Professional Fees | $0 | $5,000 |
| Security/Automation | $15,000 | $35,000 |
| Utility Deposits | $1,500 | $3,000 |
| Additional Funds – 3 months | $8,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | $5,000 |
| Technology Fee | $350/month |
| Audit Fee | Our reasonable costs for the audit if you understate revenue by more than 2% or fail to deliver to us required reports on time. |
| Regional Advertising Cooperative | Your share of actual cost of advertising. |
| Initial Training (additional/replacement trainee) | $300 per person per day. |
| Additional Training | $300 per person per day. |
| Remedial Training | $300 per trainer per day. |
| Annual Convention Fee | Up to $500 |
| Step-In Rights Fee | 15% of Gross Revenues plus reasonable administrative, personnel, and travel costs |
| Late Charge | $100 per occurrence |
| Interest | 18% per annum, from due date, or maximum allowed by law. |
| Non-Sufficient Funds Fee | $50 per occurrence |
| Relocation | $2,000 |
| Product Testing Costs | Reasonable out-of-pocket expenses and costs we incur |
| Reimbursement of Legal Fees and Expenses | Our costs and expenses, including but not limited to attorneys’ fees, incurred for your failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Indemnification | Amount of loss or damages plus costs. |
| Reimbursement of Costs and Expenses for Non-Compliance | Actual costs and expenses. |
| Post-Termination or Post-Expiration Expenses | Costs and expenses. |
| Insurance Reimbursement | Amount paid by us for your insurance obligations, plus an additional 10% administrative fee. |
| Liquidated Damages | Up to 24 months of Royalty fees and Brand Marketing Fund contributions |
| Taxes | Amount of taxes. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 2-3 days of remote training and follow up on completion of our initial training program checklist |
| Classroom Training | 15.5 hours |
| On-the-Job Training | 0 to 5 hours |
| Training Location | Virtual, Onsite (per your request), at our headquarters or another location at Franchisor’s discretion. |
| Additional Training | From time to time we may provide refresher training programs or seminars and may require that you or your managers attend and complete them to our satisfaction. These programs and seminars will be held at locations we designate and will be provided without charge to you. You will be exclusively responsible for paying all travel, living and other expenses and compensation of attending these programs and seminars. Each year, usually in conjunction with our annual convention, you or the designated managers of your Franchise will be required to attend up to 12 to 16 hours of programs and seminars, depending upon program and seminar availability. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | total cumulative population of approximately, but not greater than, 50,000 people. |
| Description | Your Territory will be located in all or a portion of a listed town, city, or county, and is identified by a group of contiguous Zip Codes. The Territory is determined on an individual basis taking into account the population or geographic radius and will be further defined by political boundaries, natural boundaries, demographics, and healthcare expenditures in the area, and other factors we deem pertinent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | up to 3 additional terms of 5 years each |
| Renewal Fee | $5,000 |
| Renewal Conditions | You must give notice at least 3 months, and not more than 6 months, before expiration of the initial term; faithfully perform under the initial agreement; sign general release; sign a new agreement; pay a renewal fee in the amount of $5,000; and go through retraining. |
| Transfer Fee | $20,000 |
| Transfer Conditions | The transferee must qualify as a franchisee and must assume your obligations, you may not be in default, the transferee must successfully complete the mandatory training, you must pay the transfer fee in the amount of $20,000, the transferee must sign a new franchise agreement on our then current terms, and you must release us. |
| Termination for Cause | The Franchise Agreement will terminate automatically, without notice for the following defaults: insolvency; bankruptcy; written admission of inability to pay debts; receivership; levy; composition with creditors; unsatisfied final judgment for more than 30 days; or foreclosure proceeding that is not dismissed within 30 days. We may terminate the Franchise Agreement upon notice to you if you: do not acquire a site; do not complete construction and/or open the Franchised Business within required time frames; falsify any report to us; cease operations for 5 days or more, unless the premises are damaged and you apply to relocate; lose possession of the premises, unless you are not at fault for loss and you timely apply to relocate; fail to restore and re-open the Franchised Business within 120 days after a casualty; fail to comply with applicable laws; default under any lease for the premises; fail to comply with insurance and indemnification requirements; attempt a transfer in violation of the Franchise Agreement; fail, or your legal representative fails to transfer as required upon your death or permanent disability; misrepresent or omit a material fact in applying for the Franchise; are convicted or plead no contest to a felony or crime that could damage the goodwill or reputation of the Marks or the System; receive an adverse judgment in any proceeding involving allegations of fraud, racketeering or improper trade practices or similar claim that could damage the goodwill or reputation of the Marks or the System; conceal revenues or maintain false books; create a threat or danger to public health or safety; refuse an inspection or audit by us; use the Marks, copyrighted material or Confidential Information in an unauthorized manner; make an unauthorized disclosure of Confidential Information; fail to comply with non-competition covenants; default in the performance of your obligations 3 or more times during the term or receive 2 or more default notices in any 12-month period; or terminate the Franchise Agreement without cause. |
| Non-Compete Period | during the term and 2 years post-termination/expiration |
| Non-Compete Details | During the term, you may not disclose confidential information or compete. Post-termination/expiration, no competition is allowed for 2 years within the Territory, within 25 miles of the Territory, within 25 miles of any territory or market where we operate or have granted the franchise to operate a business, and within the United States of America. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You or one of your owners, if you are a corporation or partnership, must participate fully in the actual day-to-day operation of the franchise business. You may designate a manager to assume responsibility for day-to-day operations. Any managers you employ to help you to operate the franchise must successfully complete the initial training program described in Item 11. Your manager is not required to have an equity interest in your franchise. The manager and all of your owners must agree to be bound by the confidentiality and non-competition provisions of the Franchise Agreement in writing. If you own multiple The Back Nine franchises, the managing owner or manager of each franchise must successfully pass our training. |
| Required Suppliers | You must purchase your simulator equipment from our designated supplier Full Swing. The designated supplier for your door lock system is Kisi. You must purchase all equipment, fixtures, inventory, supplies and services from our designated suppliers, approved suppliers and contractors or in accordance with our specifications. |
| Supply Restrictions | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. These items may be more expensive than similar items you could buy on your own. You must purchase all or nearly all of the inventory or supplies that are necessary to operate your business from the franchisor, its affiliates, or suppliers that the franchisor designates, at prices the franchisor or they set. These prices may be higher than prices you could obtain elsewhere for the same or similar goods. |
| Franchisor Revenue from Suppliers | As of September 2024, we receive an estimated 11% commission on any orders submitted by franchisees to Full Swing for new simulator installs and replacement hitting turf and screens. During the fiscal year ended December 31, 2023, we and our affiliate did not earn any Allowances. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
The Back Nine Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Back Nine Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Back Nine System Growth
The Back Nine currently operates 9 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 1 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
| 2023 | 9 | 0 | 10 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Kezos & Dunlavy Certified Public Accountants & Business Advisors for year ending December 31.
The Back Nine Franchise — FAQ
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