Option #2 - Area Development Agreement

A candidate is awarded multiple territories with the right to develop these territories over a period of time. Typically the rights are granted to a large urban area, entire state, or province. Area Development Agreements are a minimum of four territories in size.

The total investment varies depending on the total number of territories awarded in the exclusive Area Development Agreement. The franchise fees, for example, for a candidate that is awarded a five unit Area Development Agreement would be a total of $225,000 (five units at $45,000 each).

Fifty percent of this fee is paid when the Area Development Agreement is awarded (in this case $112,500) and the remainder is financed, by us, at zero percent interest over the development term.

So if the candidate plans on opening one site per year for five years, $22,500 would be paid on the day each site opens, for added total of $112,500.

In addition to the franchise fees, the candidate will also be required to build a minimum of one Golf Training Center for each territory (currently $281,845 - $1,093,500 including the $45,000 franchise fee).

Currently we have a total of eighty-six franchises awarded and pending.

This includes eight Regional Franchises awarded and pending (Mid America, Middle East/Africa, South Central, Canada, Mid Atlantic, China and Mountain awarded and North East pending)

We also have seventy-eight Golf Training Center franchises awarded and pending. This includes:

• a four unit Area Development Agreement awarded for Memphis (with one site open)

• a four unit Area Development awarded for Atlantic Canada;

• a single unit Franchise awarded for St. John's, Newfoundland;

• an eleven unit Area Development awarded for Washington State (including our first Links Golf Cafe location)

• a seven unit Area Development awarded for Lansing and Grand Rapids, Michigan;

• a Single Location Franchise Agreement awarded for Guangzhou, China (open and operating in the CITIC Plaza)

• a six unit Area Development Agreement awarded for Greater Indianapolis (with one site open in Noblesville)

• a seven unit Area Development Agreement awarded for British Columbia;

• a five unit Area Development Agreement awarded for Southern Ontario; (with the first center to be located in Kitchener)

• a five unit Area Development Agreement awarded for Alberta; (with the first center to be located in Edmonton)

• a five unit Area Development Agreement awarded for Northern Ontario;

• a five unit Area Development Agreement awarded for Manitoba & Saskatchewan;

• a four unit Area Development Agreement awarded for Nevada;

• a single unit Franchise awarded for North Tucson, Arizona;

• a four unit Area Development Agreement pending for West Oklahoma; and

• a six unit Area Development Agreement pending for Northern New Jersey;

Our first site opened June 17th, 2006 in Memphis, Tennessee.

To see a map of North America and find out the availability of Area Developments and Individual Territories, click here.

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