Bottom line
- Total investment $1.1M – $1.8M including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $99K/year (median $97K).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 300 loans (below the industry average).
- System growing at 74.3% CAGR over 3 years with 126 total units — strong expansion trajectory.
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 X-Golf unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 X-Golf units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$158K
on $792K purchase
Total debt
$634K
SBA $0.4M + senior + seller note
Overview
About
X-Golf franchisees operate golf entertainment simulators and facilities, allowing customers to play virtual rounds on famous golf courses using advanced swing analysis technology. Day-to-day operations include managing customer bookings, maintaining simulator equipment, providing coaching/instruction, managing food/beverage service, and overseeing facility maintenance. Revenue is primarily derived from per-round simulation fees, memberships, food/beverage sales, and instruction packages.
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 · 29 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
X-Golf presents elevated risk due to ongoing litigation involving management misconduct, undisclosed profitability metrics, and going concern issues, despite strong unit growth that may mask poor unit-level economics.
Score breakdown · what drove the 59 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed - inability to verify $99,000 average revenue claim or validate profitability
- 02HIGHActive litigation involving fraud allegations, breach of fiduciary duty, and revenue siphoning by former management raises governance and trust concerns
- 03MEDHigh initial investment ($1.13M-$1.76M) combined with undisclosed net income creates unfavorable risk-reward profile
- 04MINOR7% royalty on adjusted gross sales reduces already-thin margins in golf entertainment sector
- 05MINORRapid 23.2% YoY unit growth may indicate aggressive recruitment masking underlying unit economics problems
- 06HIGHGoing Concern status is False - potential financial viability concerns at corporate level
- 07MINORProtected territory alone insufficient to offset operational and financial uncertainties
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
X-Golf · FDD (2025) PDF