Topgolf Franchise: Cost, Fees & How To Open In 2025

Have you ever stood at a Topgolf, watched the glowing balls soar into the night, and thought, “I should open one of these”? You’re not alone. The question of how to get a top golf franchise is one of the most common inquiries in the entire entertainment and recreation industry, driven by the brand’s explosive popularity and vibrant atmosphere.

Despite its massive success, Topgolf does not offer traditional single-unit franchises in the United States or the United Kingdom. Most venues are corporate-owned, with exclusive opportunities reserved for large-scale international development partners who meet incredibly strict financial and experiential criteria.

This guide cuts through the confusion and lays out the hard facts. Leveraging a deep analysis of Topgolf’s business model, financial requirements, and performance data, we will unpack the real path to partnership. We’ll break down the staggering investment costs, the impressive revenue potential, and—for the vast majority of investors—the most viable and accessible “golf-tainment” alternatives available in 2025.

Key Facts

Misconception vs. Reality: A traditional top golf franchise for a single location is not available in the US or UK; the company operates on a corporate-owned and international partnership model.

Massive Financial Barrier: International partners must have access to over $150 million in capital and commit to developing a minimum of five venues, demonstrating the immense scale of the opportunity.

High Investment, High Return: Developing a single Topgolf venue costs between $15 million and $50 million, but a successful location can generate $17 million to $28 million in annual revenue.

Strong Profitability: Well-run Topgolf locations are highly profitable, with many reporting net annual profits between $3 million and $5 million after all operating expenses are paid.

Ownership Structure: Topgolf is owned by Topgolf Callaway Brands Corp., which acquired the company in 2021 and maintains direct control over quality and operations in its primary markets.

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The Truth About Opening a Topgolf Franchise in 2025

Topgolf does not offer traditional single-unit franchises in the United States or the United Kingdom. Most venues are corporate-owned, but opportunities exist through large-scale international partnership agreements. This is the single most important fact to understand. While you might see the term “top golf franchise” used online, it almost always refers to these massive, territory-wide development deals, not a business you can open in your local city.

The distinction is critical because it fundamentally changes the profile of a potential partner. The company, owned by parent Topgolf Callaway Brands Corp., maintains a tight grip on its US and UK locations to ensure a consistent, high-quality brand experience. For global expansion, it relies on a different strategy.

Here’s the real business model, broken down:

Corporate-Owned Venues: In the US and UK, Topgolf builds, owns, and operates its own locations. This ensures every aspect—from the Toptracer technology to the food and beverage program—meets the company’s exacting standards. You cannot buy into this system as a franchisee.

International Partnership Agreements: For expansion into new countries, Topgolf seeks highly qualified, exceptionally well-capitalized partners. These are not franchise agreements in the typical sense; they are licensing deals that grant a developer the rights to build and operate multiple Topgolf venues across an entire country or region.

So, if you can’t buy a traditional franchise, what’s the real path to partnering with Topgolf?

Who Qualifies? The Strict Requirements for an International Topgolf Partnership

Potential international partners must commit to opening 5+ venues, have access to over $150 million in capital, and possess extensive experience in hospitality, F&B, and large-scale real estate development. Topgolf International, Inc. sets an incredibly high bar for its partners because they are entrusting them with the brand’s reputation in a new market. They aren’t looking for operators; they are looking for empire builders.

The requirements are designed to filter out all but the most serious and capable development groups. This is not an opportunity for an individual investor or a small business owner. A deep dive into the criteria reveals the caliber of partner Topgolf seeks.

Pro Tip: Topgolf isn’t looking for single-venue owners; they’re seeking partners capable of developing an entire territory.

Here is a clear breakdown of the stringent requirements to even be considered for an international top golf franchise partnership:

Requirement Category	Specific Mandate & Rationale
Multi-Unit Commitment	Ability and willingness to open 5 or more Topgolf venues. This ensures a significant market presence and long-term partnership.
Massive Financial Backing	Access to $150 million or more in capital. This reflects the high cost of multi-venue development and operational runway.
Relevant Industry Experience	A proven track record in entertainment, food & beverage (F&B), and/or hospitality. This is crucial for managing the complex “eatertainment” model.
Brand Adaptation Skills	Demonstrated success in bringing other USA/UK brands to your territory. This proves you can adapt a concept to local cultures and regulations.
Real Estate Expertise	Deep experience with large-scale commercial real estate development. Essential for site selection, acquisition, and construction.
Local Market Dominance	Strong local market knowledge and connections. Vital for navigating permits, labor, and supply chains for a successful launch.

The Six Pillars of a Successful Topgolf Developer Profile

A qualified developer needs multi-unit commitment, massive financial backing, hospitality experience, brand adaptation skills, real estate expertise, and deep local connections. These aren’t just suggestions; they are the fundamental pillars Topgolf evaluates to ensure a new territory will succeed. Let’s look at why each one is non-negotiable.

Consider this: Do you have a proven track record of bringing major international brands to your country?

Multi-Unit Development Commitment: Topgolf’s strategy is about market saturation. They want a partner who can build a network of venues, not just one. This requires a long-term vision and the operational capacity to manage a portfolio of large, complex businesses.
Access to $150M+ in Capital: The numbers speak for themselves. With individual venues costing up to $50 million, a five-venue commitment requires access to enormous financial resources to cover land, construction, technology, and operations across the board.
Hospitality and F&B Mastery: A common mistake is viewing Topgolf as just a driving range. It’s a high-volume restaurant, bar, and event space first. Evidence suggests that food and beverage sales often generate more revenue than gameplay, making this experience absolutely critical.
International Brand Experience: Experience with USA/UK brands is crucial because it demonstrates the ability to adapt a proven concept to a new cultural and economic market. This includes navigating marketing, branding, and customer service nuances.
Large-Scale Real Estate Prowess: You can’t put a Topgolf just anywhere. Finding and securing 10-15 acre plots in desirable locations, and then managing the construction of a 65,000+ square foot facility, requires a sophisticated real estate development background.
Deep Local Connections: Understanding local regulations, permitting processes, supply chains, and consumer habits is a key advantage. A partner with strong local ties can accelerate development and avoid costly pitfalls.

Breaking Down the Full Topgolf Investment: What’s the Real Cost?

The estimated total investment to open a new Topgolf venue ranges from $15 million to $50 million, with major costs in land acquisition, construction of the 65,000+ sq ft facility, and proprietary technology. This staggering price tag is why the search for a simple “top golf franchise fee” is fruitless. You are not buying a franchise; you are funding a massive construction and technology project from the ground up.

The price tag is significant, but understanding where every dollar goes is the first step in a serious investment analysis. The total cost is a combination of several high-ticket items, with the final figure heavily influenced by the local real estate market and construction costs.

Here’s a detailed breakdown of the primary investment components:

Land Acquisition & Site Development
- A typical Topgolf venue requires a very large parcel of land, usually between 10 and 15 acres.
- The cost for this land can vary dramatically between a dense urban area and a more suburban location, often representing a multi-million dollar expense right from the start.
Construction and Facility Build-Out
- This is the largest single expense, with construction costs alone frequently cited in the $20 million to $40 million range.
- The facility itself is enormous, typically a three-story building spanning 65,000 to 83,000 square feet.
- This space houses dozens of climate-controlled hitting bays, multiple professional kitchens, several bars, private event spaces, and retail areas.
Technology & Equipment
- Topgolf is a tech company as much as it is an entertainment venue. A significant investment goes into its proprietary systems.
- This includes the Toptracer ball-tracking technology in every bay, microchipped golf balls, digital scoring systems, and extensive audio-visual equipment throughout the facility, adding several million dollars to the budget.
Pre-Opening & Operational Capital
- Beyond the physical build, a substantial amount of working capital is required.
- This covers everything from initial inventory for the kitchens and bars, extensive staff hiring and training, marketing for the grand opening, and having enough cash on hand to run the business until it becomes cash-flow positive.

The Financial Swing: Topgolf’s Revenue Potential and ROI

A single Topgolf location can generate $17M to $28M in annual revenue, with net profits between $3M and $5M. The initial investment can potentially be paid back in 2.5 to 5 years. For investors who can clear the monumental financial hurdles, the returns are just as massive. The top golf franchise model is engineered for high-volume, high-profit performance, making it one of the most lucrative concepts in the entertainment space.

The financial success of each venue hinges on a brilliantly diversified revenue model. Unlike a traditional golf course, Topgolf is not solely reliant on people coming to hit golf balls. It’s an all-encompassing social destination.

Quick Fact: Food and beverage sales often generate more revenue than the gameplay itself, highlighting the power of the ‘eatertainment’ model.

The revenue streams are a balanced mix of its core offerings:

Gameplay Fees: The core attraction of hitting microchipped golf balls at giant targets accounts for approximately 29% of total revenue.
Food & Beverage (F&B): With a full-service restaurant and multiple bars, F&B is a powerhouse, contributing roughly 33% of sales.
Events & Group Bookings: Corporate outings, private parties, and social gatherings are a huge business driver, making up about 34% of revenue.
Merchandise & Other: The remaining 4% comes from retail sales and other miscellaneous sources.

This highly profitable model is built to deliver exceptional returns. Well-established data indicates that a Topgolf venue can achieve a cash-on-cash return of 40% to 50% by its third year of operation. With net annual profits frequently landing between $3 million and $5 million, the initial payback period is remarkably swift for an investment of this magnitude, often falling within a 2.5 to 5-year window.

Can’t Meet the Bar? Top “Golf-tainment” Franchise Alternatives

For those seeking a lower investment, alternatives like X-Golf ($750k-$1.2M) and Swing Bays ($226k-$924k) offer a “golf-tainment” franchise experience with a more accessible entry point. The reality is that a top golf franchise partnership is out of reach for all but a handful of global investment firms. But the good news is, you don’t need $50 million to get into the lucrative golf entertainment business.

The success of Topgolf has inspired a wave of innovative and more affordable franchise concepts that leverage similar technology on a smaller, more manageable scale. These businesses focus on indoor golf simulators, offering a climate-controlled, tech-driven experience that appeals to serious golfers and casual entertainers alike.

While a full Topgolf venue might be out of reach, which of these concepts could fit your investment level and business goals?

Franchise Name	Concept	Estimated Investment
X-Golf	High-end indoor golf simulators, bar, and lounge. Focus on leagues and social events.	$750,000 – $1,200,000
Swing Bays	State-of-the-art simulators with a focus on golf instruction and fitness integration.	$226,400 – $924,000
Topgolf Swing Suite	A premium, smaller-scale Topgolf experience designed to be added to existing venues like hotels or casinos.	Varies by project
Drive Shack	A direct, large-format competitor to Topgolf, offering a similar outdoor, tech-enabled driving range experience.	Similar to Topgolf ($15M+)

It’s also worth noting that the market is consolidating. Topgolf Callaway Brands itself acquired a competitor, BigShots Golf, in 2023, signaling the strength and long-term viability of the overall “golf-tainment” sector. For aspiring entrepreneurs, these alternatives represent a realistic and compelling pathway into a booming industry.

If you’re inspired by the ‘golf-tainment’ model but want to start on a smaller scale, perhaps even at home, investing in high-quality golf simulator equipment can be a great first step.

FAQs About a Topgolf Franchise

How much is a Topgolf franchise?

Topgolf does not offer traditional franchises with a set fee. The total investment to develop a new Topgolf venue is estimated to be between $15 million and $50 million. This figure covers all aspects of the project, including land acquisition, the construction of the massive facility, proprietary technology, and initial operating capital. It is a full-scale development project, not a simple franchise purchase.

Are Topgolf’s franchised?

No, most Topgolf locations in the U.S. and U.K. are not franchised; they are owned and operated directly by the corporation. This allows Topgolf to maintain strict control over quality, service, and brand consistency in its core markets. Franchising opportunities are exclusively limited to large-scale international partnership agreements for developing entire countries or regions.

Who is Topgolf owned by?

As of 2021, Topgolf is owned by Topgolf Callaway Brands Corp., after being acquired by the Callaway Golf Company. This merger brought together a leader in golf equipment and a leader in golf entertainment, creating a powerhouse in the global golf industry. The business operates as a key subsidiary of the parent company.

Is Topgolf struggling financially?

Individual Topgolf venues are highly profitable, with many earning $3 to $5 million in net profit annually. While the parent company, Topgolf Callaway Brands, announced a planned split of its businesses in 2024, this is widely seen as a strategic move to unlock shareholder value and is not an indication of financial struggles at the venue level. The underlying business model remains exceptionally strong.

What is the annual revenue for a Topgolf location?

The average annual gross sales for a Topgolf location are estimated at $17 million, with some high-performing venues reaching between $20 million and $28 million per year. This impressive revenue is driven by a diversified business model that includes gameplay, high-volume food and beverage sales, and corporate and private events.

Final Summary: Is a Topgolf Franchise Right for You?

After a comprehensive look at the data, the picture is crystal clear. The dream of opening a local top golf franchise is, for most people, just that—a dream. The reality is an exclusive, high-stakes opportunity reserved for the world’s elite development groups with nine-figure investment capabilities and a proven international track record. It’s less of a franchise and more of a strategic corporate partnership to conquer new global markets.

However, understanding this reality is powerful. It allows you to pivot from an unattainable goal to a realistic strategy. The “golf-tainment” industry is booming, and the real opportunity for most entrepreneurs lies in the accessible, scalable, and highly profitable franchise alternatives that capture the same spirit of fun and technology on a more manageable budget.

Here are the most critical takeaways:

It’s Not a Franchise: Topgolf’s model in the US and UK is corporate-owned. The only “franchise” path is through international partnerships requiring a commitment to build 5+ venues.
The Barrier is Immense: A partnership requires access to over $150 million in capital and extensive experience in hospitality, real estate, and international brand development.
The Model is Powerful: For those who qualify, the investment is huge ($15M-$50M per venue), but the financial returns are extraordinary, with potential annual revenues of $17M-$28M.
Real Alternatives Exist: For a fraction of the cost, franchise concepts like X-Golf and Swing Bays offer a viable entry into the lucrative golf entertainment market.

Now that you have the complete picture, you can assess whether pursuing an international partnership or exploring a more accessible alternative is the right strategic move for your investment portfolio.

Last update on 2025-07-23 / Affiliate links / Images from Amazon Product Advertising API