The Back Nine

Given that average gross sales of $81,598 are significantly below the typical range for sports franchises, what factors explain this performance differential, and are there specific unit types or locations that perform substantially better?

The franchise has grown from 1 unit three years ago to 28 units today (203.7% CAGR). What is the strategy and timeline for continued expansion, and are there saturation concerns for the territory model?

Why does The Back Nine charge no advertising fund (0%) when the typical range for this franchise type is 1.0-2.0%? How are marketing and brand awareness funded across the system?

The transfer fee of $20,000 is above the typical range for sports franchises. What factors justify this higher transfer fee, and are there any restrictions on who can acquire a transferred unit?

Your total potential contract term of 25 years is longer than the typical 20-year maximum. Does this extended term provide franchisees with additional security, or does it create challenges with renewal negotiations?

Territory is designated as protected but non-exclusive. Can the franchisor open additional Back Nine locations within your territory, and if so, under what circumstances?

The non-compete clause restricts activity within 2 years and 25 miles of any Back Nine location covering businesses deriving more than 5% of gross receipts from similar activities. How broadly is 'similar activities' defined in practice, and have there been any disputes over non-compete enforcement?

Your franchise agreement includes 19 non-curable defaults that can trigger immediate termination. Can you provide specific examples of what constitutes a non-curable default versus the 5 curable defaults with 30-day cure periods?

With 8 designated suppliers including Full Swing for simulators and Kisi for door locks, what pricing authority do franchisees have, and are there alternatives if designated suppliers increase costs significantly?

Item 19 financial performance data shows average gross sales of $81,598. What percentage of reporting units provided this data, and what is the range of sales across units (highest to lowest)?

One unit transferred in 2024. Was this a voluntary transfer or initiated by the franchisor, and what were the circumstances?

The Termination clause grants broad franchisor rights with 19 non-curable defaults. Have any franchisees been terminated for non-curable defaults, and if so, on what grounds?

Personal guarantees are required from franchisees but not spouses. If the franchisee defaults, can the franchisor pursue personal assets beyond the franchised unit?

The franchise has zero litigation history over 3 years. However, given the rapid growth from 1 to 28 units, are there any pending disputes or complaints from newer franchisees that may not yet have reached formal litigation?

What is included in the $350 annual technology fee, and are there additional technology costs not reflected in this fee (e.g., POS systems, booking software, website)?

How is encroachment protection defined and enforced when territory is not exclusive? What recourse do franchisees have if the franchisor opens a competing location nearby?

The renewal fee is $5,000 for one of three 5-year renewal options. Does this fee increase with subsequent renewals, and what is the process and timeline for renewal negotiations?

With the franchise in early growth phase, what are the quality control measures for new franchisees, and what is the typical ramp-up period for new units to reach system average performance?

Are there any volume purchase requirements with designated suppliers, and do franchisees receive volume discount visibility or pricing transparency?

The operational control clause requires franchisor approval for major decisions. What specific operational decisions require franchisor consent beyond supplier selection?