Bottom line
- Total investment $237K – $637K including a $45K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $170K/year. Estimated payback in 3.2 years.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Golf Envy unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Golf Envy units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$204K
on $1.0M purchase
Total debt
$815K
SBA $0.5M + senior + seller note
Overview
About
Golf Envy franchisees operate golf retail and/or instruction facilities, likely selling golf equipment, apparel, and accessories while offering lessons, fitting services, or driving range experiences. Day-to-day operations involve inventory management, customer service, coaching/instruction delivery, facility maintenance, and marketing to drive golf enthusiast traffic.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Golf Envy presents material risk due to a microscopic 2-unit system, poor royalty economics relative to average revenue, and unvalidated financial claims without FDD Item 19 support.
Score breakdown · what drove the 62 / 100 rating
- 01MINOROnly 2 existing units with unknown growth trajectory raises system viability questions
- 02MINOR7% royalty on $169,880 avg revenue yields only $11,892 annually—below the $12,500 minimum, meaning most franchisees hit the minimum royalty floor immediately
- 03MINORHigh investment range ($236,800–$636,800) relative to average revenue creates poor payback economics and break-even risk
- 04MEDNo Item 19 financial performance data disclosed limits ability to validate the $138,211 average net income claim
- 05MINORExtremely small franchisee base (2 units) prevents meaningful performance validation and increases likelihood of cherry-picked data
- 06MINOR10-year term is long for an unproven 2-unit franchise system with no demonstrable unit growth
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Golf Envy · FDD (2025) PDF