|
#1
Start-Up Budget for a Golf Training Center
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PRELIMINARY START-UP BUDGET
RANGE |
|
PARMASTERS
GOLF TRAINING CENTERS |
|
ITEM
|
Minimum
est. |
Maximum
est. |
|
Leaseholds
(click
here for more info) |
|
|
Interior fit and
finish |
|
|
|
|
Swing System Tee
& Turf |
|
|
|
|
Locker Room Area
|
|
|
|
|
Short Game Area |
$20,330 |
$946,712 |
|
Equipment
|
|
|
Opportunity Room
|
|
|
|
|
Training Room |
|
|
|
|
Swing Center |
|
|
|
|
Motivation Room Equipment
|
|
|
|
|
Virtual Reality Golf
(3 sets) |
|
|
|
|
Office Equipment
|
|
|
|
|
Food Area Equipment
|
|
|
|
|
Pro Shop |
$86,600
|
$776,000
|
|
Initial
Inventory |
|
|
Golf Balls |
|
|
|
|
Custom Golf Clubs
|
|
|
|
|
Mental Training Tools
|
|
|
|
|
Apparel |
|
|
|
|
Miscellaneous |
$8,000
|
$62,500
|
|
Initial
Promotional Materials |
|
|
Rack Cards |
|
|
|
|
Postcards |
$6,000
|
$20,000
|
|
Opening
Marketing Investment |
|
|
Launch marketing
|
$24,000
|
$48,000
|
|
Training
Costs (@ Team HQ) |
|
|
10 days @ HQ, inc.
travel, |
|
|
|
|
accommodation &
food |
$0
|
$0
|
|
Insurance
|
|
|
Building and Liability
|
$4,000
|
$20,000
|
|
Professional
Services |
|
|
Legal |
|
|
|
|
Accounting |
$5,000
|
$9,500
|
|
Security
Deposits |
|
|
Building and Utilities
|
$10,000
|
$75,000
|
|
Franchise
Fee |
|
|
Individual Territory
Franchise |
$25,000
|
$45,000
|
|
Working
Capital |
|
|
|
$80,000
|
$504,000
|
|
|
|
Total |
|
$274,430
|
$2,537,712
|
Leasehold Improvements:
The
Golf Training Center land and building will ordinarily
be leased rather than owned, although you are permitted
to buy them if you so desire.
Some or all of the building leasehold improvements
may also be leased from a landlord if a suitable landlord
and site is found.
Parmasters
estimates that the average Golf Training Center
will have approximately 2,000 to 35,000 square feet.
Your initial investment for leasehold improvements,
will vary depending upon local labor and materials
costs. These
variables affect how different obligations will be distributed
between landlords and tenants under different lease
agreements and the costs of acquisition and construction.
Although the cost of leasehold improvements will
vary depending upon the above-described factors, we
estimate that the average cost of leasehold improvements
will range between $20 and $60 per square foot. Note,
you may want to pay for some or all of these leasehold
improvements in order to lower your monthly lease costs.
Landlords may pay a tenant finish-out allowance as
a cash incentive to do business with them. This payment
will reduce or eliminate your leasehold improvements,
and varies greatly on market conditions, but will range
from $5 to $20 per square foot. This would result in
a net investment (after finish-out allowance) for you
of between $20 and $35 per square foot.
Note, at further Stages in our Franchise Awarding
Process we have will share much more detailed financial
budgets, by investment model. This is intended merely to
give you a feel for the range and scope of investment
options.
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