How to Finance a Five Iron Golf Franchise: Simulator Venue Costs
By Anthony Cornella
A Five Iron Golf franchise loan pays for something more complex than a typical storefront: a city venue packed with golf simulator bays, and in the flagship format a full kitchen, a bar, table games and event space. That mix of entertainment, hospitality and coaching gives lenders several revenue streams to study, but it also means a heavy build-out, a large technology package and a liquor license that all have to be financed before the first guest swings a club.
US Professional Funding is not affiliated with, sponsored by or endorsed by Five Iron Golf; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Five Iron Golf Franchise Loan at a Glance
- Concept: an indoor golf and hospitality venue built around golf simulators, with lessons, leagues, simulator rentals, events and food and beverage.
- Origins: the brand launched in New York City in 2017.
- System size: the franchisor’s development site reports 32 venues across 13 U.S. states and 5 countries.
- Flagship format: typically 10 to 15 simulator bays plus a full kitchen, bar, table games and event space.
- Studio format: 3 to 5 simulator bays with what the franchisor describes as a lower initial investment and overhead, 24/7 contactless entry, privacy doors on bays and grab-and-go food and beverage.
- Fees and investment: the initial franchise fee, royalty, marketing contributions and estimated initial investment are set out in Items 5, 6 and 7 of the current FDD; confirm them there before you size a loan.
- SBA Franchise Directory: listed under code S8811, with a note about the Franchise Addendum to Lease Agreement when real estate secures the loan.
What Is Five Iron Golf?
Five Iron Golf opened in New York City in 2017 as a year-round place to play, practice and socialize around golf. Its development site now lists franchised venues in markets across the United States and in several other countries, with additional territories sold in states including Florida, Texas, New York, Oklahoma and Missouri.
The concept blends three businesses under one roof: simulator rentals, coaching (lessons, leagues and memberships) and food, beverage and events.
Why lenders look closely. Diversified revenue helps, but the business sits between entertainment centers and full-service bars and restaurants, so expect a lender to underwrite both sides.
Two Formats, Two Financing Profiles
The flagship venue. With a full kitchen, bar and event space, the flagship is a hospitality build-out as much as a golf facility. It is the format most likely to need a larger Five Iron Golf franchise loan, a longer build-out and meaningful pre-opening working capital.
The Five Iron Studio. With no full kitchen or bar and a smaller space, the studio loan request is usually simpler: leasehold improvements, simulators, access control and technology, and working capital. The franchisor’s development site points studio prospects to a separate studio franchising site, so confirm which franchise agreement and disclosure document apply to the studio before you apply for financing.
Five Iron Golf Franchise Costs
Initial franchise fee. Item 5 of the current FDD states the initial franchise fee and any development fee for multiple venues. Because fees can differ between formats and development deals, read the figure for the exact agreement you will sign.
Real estate and build-out. Many venues operate in leased space. Build-out can include ceiling and wall work for screens and swing space, electrical capacity, HVAC, acoustics, restrooms and, in the flagship, a kitchen and bar.
Simulators and technology. Each bay needs a launch monitor, projector, impact screen, hitting mat and computer, plus booking, point-of-sale and, in the studio, contactless entry systems.
Furniture, fixtures, equipment and opening costs. Lounge seating, table games, bar and kitchen equipment and signage round out the package, along with training, launch marketing, permits, a liquor license where alcohol is served, deposits and opening inventory.
Total investment. Item 7 of the FDD gives the estimated initial investment range and the assumptions behind it. When reviewing it, look for these line items:
- Initial franchise fee
- Leasehold improvements and construction
- Simulator bays and related technology
- Furniture, fixtures and kitchen and bar equipment
- Signage, opening inventory, training and grand opening marketing
- Licenses, permits, insurance and deposits
- Additional funds for the initial operating period
Lenders compare your bids and quotes with these ranges.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the ongoing royalty, any brand or marketing fund contribution, technology fees and other recurring charges, along with transfer and renewal fees.
How lenders factor these costs in. Lenders deduct royalties, marketing contributions and technology fees from projected revenue before testing whether cash flow covers the Five Iron Golf franchise loan payment. They will also model rent, food and beverage cost, coach pay, simulator upkeep and peak-hour staffing.
Seasonality. Indoor golf demand often peaks in colder months and can soften in good weather, so lenders want to see how leagues, memberships and events carry the slower months.
Franchisor Requirements for New Owners
The franchisor’s development site does not publish minimum net worth or liquid capital figures, so ask the development team for current requirements and read the FDD.
The approval process. Prospects submit an inquiry through the franchising site and a team member follows up; FDD review and franchisor approval follow. The franchisor lists support with site selection, construction, training, operations, marketing and food and beverage.
Ways to Own a Five Iron Golf
A new flagship venue. The most capital-intensive route, financed on projections, equity and a signed lease. See how start-up financing for entertainment venues is typically structured.
A new Five Iron Studio. A smaller footprint and lighter equipment package, which can suit a first-time owner or an investor building several small venues.
Buying an existing venue. Resales let a buyer show a lender actual results. Our page on entertainment business acquisition loans explains how purchase financing works. Transfers require franchisor approval.
Multi-unit development. The franchisor has sold multi-venue territories; see the development section below.
Financing Options for a Five Iron Golf Franchise
SBA 7(a) loans. Because Five Iron Golf is on the SBA Franchise Directory, an SBA 7(a) loan is often the first option buyers explore. It can combine build-out, simulators, equipment, the franchise fee and working capital in one loan.
SBA 504 loans. If you buy the building where the venue will operate, an SBA 504 real estate loan may finance the property and long-lived improvements. It fits only when the borrower owns or acquires owner-occupied real estate, which is less typical for urban venues.
Conventional term loans. Strong-liquidity owners and multi-venue developers sometimes choose conventional business loans, which can offer more flexibility with stricter credit standards.
Equipment financing. Simulators, computers, kitchen and bar equipment and entry technology can be financed separately to preserve cash. Learn more about golf simulator and entertainment equipment financing.
Working capital and lines of credit. Pre-opening payroll, launch marketing, inventory and slow summer weeks all draw on cash. A reserve or line of credit, such as our entertainment working capital and credit lines, can bridge those gaps.
Seller financing on resales. A seller may carry part of a resale price; a seller note is typically subordinate to the senior loan, and lender and program rules may limit how it can be used.
SBA Loans for Five Iron Golf Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. Five Iron Golf is listed under code S8811. A listing clears the franchise relationship for SBA review; it does not approve any borrower.
What the directory note means. The listing says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Franchise Addendum to Lease Agreement may not be executed. In plain English, the addendum is used with leased sites; if you own the building and pledge it as collateral, there is no landlord lease to modify, so it is not used. For a leased venue, the addendum and lease are part of the lender’s review.
The SBA 7(a) program maximum is currently $5 million (program rules can change). Our article on SBA loans for family entertainment centers covers how SBA lenders view this industry, and the SBA loan calculator can help you test payment scenarios for planning purposes.
How Lenders Evaluate a Five Iron Golf Deal
Personal credit, net worth and liquidity. Expect a review of credit, tax returns and a personal financial statement, a personal guarantee, and an equity injection plus reserves that remain after opening.
Industry and management experience. Restaurant, bar, hospitality or entertainment management experience counts heavily, along with a plan to hire a strong general manager and head coach.
Business plan and projections. Lenders want bay utilization by daypart and season, membership, lesson and event assumptions, food and beverage sales, labor and the full fee schedule, kept conservative during ramp-up.
The FDD and franchise agreement. Lenders review Items 5, 6, 7 and 17, any franchisor financing in Item 10, and whether Item 19 includes financial performance representations. Do not rely on any revenue claims outside the FDD.
Site and lease. Ceiling height, column spacing, sound control, parking and access, lease term and renewal options, and the landlord’s acceptance of the franchisor’s lease addendum all matter. Our article on entertainment center leases and landlord consent covers what lenders look for.
Historical financials for resales. For an existing venue, expect to provide several years of financial statements and tax returns.
Simulators, Bar and Kitchen: The Equipment Deep Dive
Simulator bays are the core asset, and lenders will ask about useful life, warranty and service coverage, and whether software subscriptions are part of ongoing fees. In the flagship, kitchen and bar equipment can rival the simulator package, and permit and liquor license timing can move the opening date, so plan for both early.
Multi-Unit Growth and Development Agreements
The franchisor offers development consulting. Under a development agreement, you commit to opening a set number of venues on a schedule.
Financing the second and third venue. Lenders will look at the first venue’s actual results before funding the next one. Pairing a flagship with smaller studios can spread risk, but each loan must stand on its own projections. Our guide to financing multiple franchise units explains how lenders handle growing groups.
Real-World Scenarios
A restaurant operator opening a flagship. An experienced bar owner signs for a flagship. The lender values that track record, funds the build-out through an SBA 7(a) loan and requires a ramp-up reserve.
A first-time owner choosing a studio. A former corporate manager picks the studio format. The smaller package keeps the request simpler, and the lender focuses on bay utilization and membership sales.
A buyer acquiring an existing venue. A buyer purchases a franchised venue from an owner who is relocating. The lender underwrites historical results, the remaining lease term and the transfer approval, and the seller carries a small subordinate note.
Common Mistakes to Avoid
- Sizing the loan before confirming fees and Item 7 ranges in the current FDD
- Choosing a site without checking ceiling height, sound control and parking
- Underestimating liquor license timing and costs
- Projecting peak winter utilization all year
- Skipping a working capital reserve for pre-opening payroll and a slow first summer
For more pitfalls across the industry, read about entertainment center loan mistakes that cost owners the most.
Next Steps to Finance Your Five Iron Golf Franchise
Step 1: Choose your format. Decide whether a flagship or a studio fits your market, experience and capital.
Step 2: Review the FDD. Read Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant, and confirm which agreement covers your format.
Step 3: Talk with a financing specialist early. Learn how lenders will size the loan before you commit to a site.
Step 4: Secure a site. Negotiate a lease that fits your format and confirm the landlord will sign the franchisor’s addendum.
Step 5: Build projections. Gather bids and quotes and project each revenue stream conservatively.
Step 6: Apply and coordinate approvals. Submit the loan package and align lender timing with franchisor approval, permits and the liquor license.
Step 7: Close and open. Fund the build-out, hire your team and keep reserves for the ramp-up.
Five Iron Golf Franchise Loan FAQs
How much does it cost to open a Five Iron Golf franchise?
The estimated initial investment is in Item 7 of the current FDD. Costs differ significantly between the flagship and the studio, which the franchisor says has a lower initial investment and overhead.
What is the Five Iron Golf franchise fee?
The initial franchise fee and any development fee are disclosed in Item 5 of the current FDD. Confirm the amount for your format and the number of venues you plan to open.
What royalty does Five Iron Golf charge?
Royalty, marketing and technology fees are listed in Item 6 of the FDD. Lenders deduct them from revenue when testing cash flow.
How much liquid capital or net worth do I need?
The franchisor’s development site does not publish minimums. Ask the development team and plan for the equity injection your lender requires plus working capital reserves.
Is Five Iron Golf eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8811. Each borrower still has to qualify with an SBA lender.
Can I finance golf simulators separately?
Yes. Many owners use equipment financing for simulators, projectors, screens and computers, which can preserve cash for build-out and reserves.
Can I buy an existing Five Iron Golf venue?
Yes, if a franchised venue is for sale and the franchisor approves the transfer. Lenders will review the venue’s historical financials, lease and remaining franchise term.
Can I open multiple locations?
Yes. The franchisor has sold multi-venue territories. Each additional venue generally needs its own financing based on projections and the results of earlier venues.
Does Five Iron Golf offer financing?
Check Item 10 of the current FDD, which discloses any financing the franchisor offers. Most owners arrange their own SBA or conventional financing.
How long is the franchise term?
The term, renewal and transfer conditions are in Item 17 of the FDD. Lenders prefer a term at least as long as the loan.
Final Thoughts
A Five Iron Golf franchise loan finances a hybrid business: part golf facility, part restaurant and bar, part event venue. Owners who pick the right format, confirm every fee in the FDD, secure a suitable site and keep solid reserves put themselves in the strongest position with lenders.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing solutions and our family entertainment business financing.
