Five Iron Golf franchise unit economics
Five Iron Golf franchisees run an indoor golf simulator center with lessons, club fittings, leagues, memberships, events and a full restaurant and bar.
Five Iron Golf franchise at a glance
The 2026 FDD publishes 2025 gross sales, cost of goods, labor and EBITDA for 18 company-owned centers and a subset of nine, plus gross sales for two franchised centers.
Five Iron Golf’s 18 reported company-owned centers averaged $3,020,897 of gross sales in 2025, with a median of $2,527,757, according to Item 19 of Five Iron Golf’s 2026 FDD, issued 27 April 2026. The 18 in that group are 60%* of Five Iron Golf’s 30 company-owned centers. Fees paid to Five Iron Golf come to about 9.48%* of sales.
- A Five Iron Golf franchise costs $1,963,500 to $4,655,000 to open, including a $50,000 initial franchise fee, according to the brand’s 2026 FDD.
- Five Iron Golf charges a royalty of 7% of gross sales, a brand fund contribution of 2%, and a technology fee of up to $3,600 a quarter, and requires local advertising spend of at least 1% of gross sales.
- Five Iron Golf’s 18 company centers averaged $742,669 of adjusted EBITDA, 24.58% of gross sales, after a 7% royalty the company centers do not pay was deducted.
- Five Iron Golf’s nine select company centers, outside New York City and with 12 or fewer simulators, averaged $2,189,582 of gross sales and 16.97% adjusted EBITDA.
- Five Iron Golf’s two franchised centers with a full year of 2025 averaged $1,533,704 of gross sales, after an average of 1.4 years open.
- Five Iron Golf had 30 company-owned and 7 franchised centers at the end of 2025, and 6 signed franchise agreements for centers not yet open.
These figures come from Five Iron Golf's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Five Iron Golf Conversion Package →- The headline figures come from company-owned centers. Item 19 covers 18 of the 30 company-owned centers and 2 of the 7 franchised centers. The company centers had been open an average of 4.1 years and the franchised centers 1.4 years.
- The nine select company centers averaged $2,189,582 of gross sales. That is $831,315* below the 18-center average. The select group leaves out five New York City centers, which the FDD says have higher costs and gross sales, and four centers with more than 12 simulators.
- Labor was 23.17%* of gross sales across the 18 company centers and 26.70%* across the select nine. Cost of goods was 18.64%* and 20.07%*. Adjusted EBITDA was 24.58% and 16.97%, a gap of 7.61 points*.
- Adjusted EBITDA deducts a 7% royalty that company centers do not pay. At the 18-center average the imputed royalty is $211,463. Company centers spent an average of 2.5% of gross sales on marketing, including the 2% brand fund contribution; a franchisee pays the 2% and must spend at least 1% more on local advertising.
- Gross sales averaged $260,422* per simulator bay across the 18 company centers. Those centers average 11.6 simulator bays, from 8 at the lowest to 15 at the highest. The figure divides the average gross sales by the average bay count.
Gross sales by group
How much does a Five Iron Golf franchise make?
| Measure | 18 company centers | 9 select company centers | 2 franchised centers | All 20 included centers |
|---|---|---|---|---|
| Average | $3,020,897 | $2,189,582 | $1,533,704 | $2,872,177 |
| Median | $2,527,757 | $2,232,408 | $1,533,704 | $2,425,832 |
| Low | $1,699,877 | $1,699,877 | $1,177,125 | $1,177,125 |
| High | $7,491,082 | $2,586,517 | $1,890,284 | $7,491,082 |
| At or above the group average | 6, or 33% | 5, or 56% | 1, or 50% | 6, or 30% |
Figures as printed for January 1 to December 31, 2025. The select centers are a subset of the 18 company centers. Gross sales exclude sales taxes and tips and are reduced by refunds, credits and charge-backs.
The 18 company-owned centers averaged $3,020,897 of gross sales in 2025. The median was $2,527,757, and 6 of the 18 met or exceeded the average. The highest center had $7,491,082 and the lowest $1,699,877.
Twelve company-owned centers were left out of Item 19. Two use third-party providers for their food, one closed for renovations during the year, four have fewer than 8 simulators, and five opened during 2025. The FDD says franchised centers may not use third-party food providers.
The nine select company centers averaged $2,189,582. Their median, $2,232,408, is above their average, and 5 of the 9 met or exceeded it. The FDD says the prototypical center will have 8 to 12 simulators.
The two franchised centers averaged $1,533,704. They had been open an average of 1.4 years, against 4.1 years at the company centers. One franchised center was left out for having fewer than 8 simulators and four because they opened during 2025.
Operating results
Cost of goods, labor and EBITDA, 18 company centers, 2025
| Measure | Gross sales | COGS | COGS % | Labor | Labor % | EBITDA | EBITDA % | Imputed royalty | Adjusted EBITDA | Adjusted EBITDA % |
|---|---|---|---|---|---|---|---|---|---|---|
| Average | $3,020,897 | $563,046 | 19% | $699,860 | 23% | $954,132 | 32% | $211,463 | $742,669 | 24.58% |
| Median | $2,527,757 | $489,829 | 19% | $645,705 | 26% | $659,567 | 26% | $176,943 | $491,791 | 19% |
| Low | $1,699,877 | $312,983 | 18% | $497,248 | 29% | $310,041 | 18% | $118,991 | $191,050 | 11% |
| High | $7,491,082 | $1,206,788 | 16% | $1,510,946 | 20% | $3,501,353 | 47% | $524,376 | $2,976,977 | 40% |
Figures as printed. COGS includes food and beverage, event costs and commissions, golf pro salaries and commissions, and merchandise. Labor includes salaries, hourly wages and payroll taxes, but not golf instructors. Adjusted EBITDA is EBITDA minus an imputed royalty of 7% of gross sales.
Adjusted EBITDA averaged $742,669, or 24.58% of gross sales. Before the imputed royalty, EBITDA averaged $954,132. The median center had $491,791 of adjusted EBITDA on $2,527,757 of gross sales, 19.46%*, and the lowest-grossing center $191,050 on $1,699,877, 11.24%*.
Labor averaged $699,860 and cost of goods $563,046. Divided by the $3,020,897 average, those are 23.17%* and 18.64%*. The printed percentages round them to 23% and 19%.
Company centers have costs and revenue that a franchised center may not have. The FDD lists partnership and licensing fees on the revenue side, and corporate travel, benefit packages for senior employees, additional software fees and additional marketing on the cost side. It does not give amounts.
Company centers spent an average of 2.5% of gross sales on marketing. That includes the 2% brand fund contribution and is inside the tables. A franchisee’s required total is at least 3%: the 2% brand fund plus 1% local advertising. The 0.5-point difference is $15,104* at the 18-center average.
Select centers
Results of the nine select company centers, 2025
| Measure | Gross sales | COGS | COGS % | Labor | Labor % | EBITDA | EBITDA % | Imputed royalty | Adjusted EBITDA | Adjusted EBITDA % |
|---|---|---|---|---|---|---|---|---|---|---|
| Average | $2,189,582 | $439,536 | 20% | $584,665 | 27% | $524,893 | 24% | $153,271 | $371,623 | 16.97% |
| Median | $2,232,408 | $458,742 | 21% | $590,512 | 26% | $619,318 | 28% | $156,269 | $454,371 | 20% |
| Low | $1,699,877 | $312,983 | 18% | $497,248 | 29% | $310,041 | 18% | $118,991 | $191,050 | 11% |
| High | $2,586,517 | $488,355 | 20% | $639,048 | 29% | $654,924 | 16% | $181,056 | $473,868 | 18% |
Figures as printed. In the High row, the printed COGS, labor and EBITDA percentages differ from each dollar figure divided by $2,586,517, which gives 18.88%*, 24.71%* and 25.32%*. The FDD notes say the High-row percentages are those of the highest-grossing center.
The nine select centers ranged from $1,699,877 to $2,586,517 of gross sales. The 18 company centers ranged from $1,699,877 to $7,491,082. The lowest center is in both groups.
Labor was 26.70%* of gross sales in the select group and 23.17%* across all 18. Cost of goods was 20.07%* and 18.64%*. EBITDA before the imputed royalty was 23.97%* and 31.58%*.
Six of the nine select centers met or exceeded the $371,623 average adjusted EBITDA. Across all 18 company centers, 5 met or exceeded the $742,669 average. The select median was $454,371.
The select group leaves out the New York City centers and the largest centers. The FDD says the five New York City centers have higher costs and gross sales than typical centers. The 18 company centers average 11.6 simulator bays, from 8 to 15.
Brand charges
Brand charges
| Charge | Rate | At $3,020,897 * |
|---|---|---|
| Royalty | 7% of monthly gross sales | $211,463 |
| Brand fund contribution | 2% of monthly gross sales | $60,418 |
| Technology fee | Up to $3,600 a quarter | $14,400 |
| Local advertising (spent by the owner) | At least 1% of gross sales | $30,209 |
| Regional cooperative, if one is set up | 1% to 2% of gross sales | None now |
| Royalty, brand fund and technology fee | 9% plus up to $14,400 a year | $286,281, or 9.48% |
Royalty, brand fund and technology fee are paid to the franchisor or its vendors. Local advertising is spent by the owner; with it, the total is 10.48%*. The FDD says there are no regional cooperatives now.
The royalty is 7% of monthly gross sales, due by the 15th of the next month. The brand fund contribution is 2% on the same schedule. A franchisee with a development agreement that opens 4 or more centers gets a royalty credit that lowers the rate to 6%.
The technology fee is up to $3,600 a quarter. It reimburses vendor charges for the computer system, and may be paid to the vendors directly. At the 18-center average, royalty, brand fund and the full technology fee come to 9.48%* of gross sales.
Item 6 sets no minimum royalty. Other charges include $500 a person a day for additional training, a convention fee of $750 (capped at $1,500), a renewal fee of 50% of the then-current initial fee, and a transfer fee of 25% of it.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $50,000 | $50,000 |
| Real estate, lease, utility and security deposits | $75,000 | $375,000 |
| Leasehold improvements | $750,000 | $2,500,000 |
| Design and architectural fees | $60,000 | $80,000 |
| Furniture, fixtures and equipment | $850,000 | $1,200,000 |
| Signage | $20,000 | $50,000 |
| Computer system | $5,000 | $10,000 |
| Professional fees | $2,500 | $15,000 |
| Opening inventory | $10,000 | $25,000 |
| Opening supplies | $5,000 | $15,000 |
| Grand opening program | $50,000 | $100,000 |
| Training expenses | $1,000 | $5,000 |
| Insurance | $5,000 | $10,000 |
| Duckpin bowling | $0 | $70,000 |
| Additional funds, 3 months | $80,000 | $150,000 |
| Total | $1,963,500 | $4,655,000 |
Figures as printed. With a development agreement rider the range is $1,988,500 to $4,680,000. The franchisor says its estimates are based on its affiliates’ company-owned centers.
Leasehold improvements and furniture, fixtures and equipment are 81.49%* of the low total and 79.48%* of the high total. Leasehold improvements alone run $750,000 to $2,500,000.
The initial franchise fee is $50,000. Veterans and first responders pay $45,000 for a first center. Under a development agreement, centers two to five cost $40,000 each and later centers $30,000, or $20,000 after the development schedule is finished early. Five centers under a development agreement come to $210,000* in initial fees.
The FDD estimates 15 to 18 months from signing to opening. The center must open within 18 months. A suburban center receives a territory of at least a 2-mile radius; an urban territory is set by city blocks.
Locations
Locations, 2023 to 2025
| Type | Start of 2023 | End of 2023 | End of 2024 | End of 2025 |
|---|---|---|---|---|
| Franchised | 0 | 0 | 3 | 7 |
| Company-owned | 15 | 22 | 25 | 30 |
| Total | 15 | 22 | 28 | 37 |
No terminations, non-renewals, reacquisitions, closures or transfers in 2023, 2024 or 2025. Six franchise agreements were signed for centers not yet open at the end of 2025.
Franchised centers went from 0 to 7 between the start of 2024 and the end of 2025. Three opened in 2024 and four in 2025. No franchised center closed or changed hands.
Company-owned centers went from 15 to 30 over the three years. The company opened 7 in 2023, 3 in 2024 and 5 in 2025, and closed none.
The FDD projects 6 franchised and 1 company-owned opening in 2026. The 6 signed but unopened franchises are in Connecticut, Florida, Louisiana, Oklahoma, Texas and Virginia. The FDD also says some franchisees have signed confidentiality clauses that limit what they can say about the system.
Questions we get asked
Questions owners ask
How much does it cost to open a Five Iron Golf franchise?
The 2026 FDD estimates $1,963,500 to $4,655,000 for one center. That includes the $50,000 initial franchise fee, $750,000 to $2,500,000 of leasehold improvements and $850,000 to $1,200,000 of furniture, fixtures and equipment.
What fees does Five Iron Golf charge?
The royalty is 7% of gross sales and the brand fund contribution 2%. The technology fee is up to $3,600 a quarter. The owner must also spend at least 1% of gross sales on local advertising.
How much revenue does a Five Iron Golf center make?
The 18 company-owned centers in Item 19 averaged $3,020,897 of gross sales in 2025, with a median of $2,527,757. The nine select company centers averaged $2,189,582. The two franchised centers with a full year averaged $1,533,704.
Does the Five Iron Golf FDD show profit?
Yes, for company-owned centers. The 18 company centers averaged $742,669 of adjusted EBITDA, 24.58% of gross sales, and the nine select centers $371,623, 16.97%. Adjusted EBITDA deducts a 7% royalty that company centers do not pay.
How many Five Iron Golf locations are there?
At the end of 2025 there were 30 company-owned and 7 franchised centers, 37 in all. Six more franchise agreements were signed for centers not yet open.
How long does it take to open a Five Iron Golf center?
The FDD estimates 15 to 18 months from signing the franchise agreement, and the center must open within 18 months.
Questions worth putting to Five Iron Golf
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Five Iron Golf see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Five Iron Golf locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
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Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Five Iron Golf Franchising LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Five Iron Golf is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Five Iron Golf Franchising LLC, 2026 Franchise Disclosure Document, issued 27 April 2026.