TruGolf has long been in the business of developing technology to play the sport virtually indoors. Now the brand is creating a space for their fans to use their simulators.
A subsidiary of TruGolf Holdings Inc., TruGolf Links is a new indoor simulator franchise that, once open, will feature the parent company’s hardware and software. Ben Litalien, founder of franchise consultancy FranchiseWell who’s serving as the brand’s chief development officer, said because the parent company already had the technology, leadership saw the opportunity to create an experiential concept.
“They have been leading in technology for golf simulators and they have arcades games as well,” Litalien said. “They also make their own custom hardware, the boxes, the simulator bays, and the software to run it. And they sell their hardware and software to a wide variety of people and businesses. That led them to wanting to create TruGolf Links.”
Litalien said the brand is seeking space for its first location in Salt Lake City. The first unit will use the brand’s flagship design, which is a 5,000-square-foot building featuring a double-sized golf simulator bay and four standard bays. The flagship design will be one of two options for future franchisees, the other will be a 3,800-square-foot model.
The numbers are there to back up the franchise launch, as Litalien cited data from the National Golf Foundation which showed a 19 percent increase in people playing indoor golf simulators in 2022. The popularity has led to competition within the golf simulator category, with similar brands starting up in the last decade.
TruGolf Chief Development Officer Ben Litalien
One of them is X-Golf, which finished 2023 with 99 units and has an initial investment between $993,500 and $1.9 million. The other is Five Iron Golf, founded in 2017, which has 24 locations and an initial investment between $1.4 million and $4.2 million.
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“People want to do things together and have fun,” Litalien said. “Obviously we’ve seen places like Top Golf grow dramatically, so there’s just a lot of demand in the market for a place to go, play golf and socialize. Since TruGolf leads in hardware and software, it just made sense to make an offering.”
The initial investment for a TruGolf franchise is lower than competitors, too, depending on what model a franchisee chooses. While the franchise disclosure document is still being finalized, Litalien said the investment will range from $689,745 to $1.2 million.
TruGolf’s existing technology is readily available, Litalien said, so franchisees will get hardware and software at an affordable rate from TruGolf.
“You look at others that are out there and none of them are making their own technology, they’re buying it,” Litalien said. “But, we’re a closed circle. We have the hardware. We have the software, and we have the retail locations. We have a whole assortment of arcade games that will be very attractive for customers.”
In addition to golf simulators, both types of TruGolf Links prototypes will feature a full bar and food, as well as a club cleaning station and pro shop.
The first location will be franchised, with TruGolf CEO Chris Jones starting as the first owner. To assist in building its system from there, the brand partnered with Franchise Well.
The hardware and software at TruGolf Links will allow players to choose from a variety of digital courses.
“The company has the experience with the technology, and they want to put that in the hands of local owners,” Litalien said. “The value of having a franchised location is the owners’ local sphere of influence, their passion and the commitment to the business, their customers and employees. It will yield a better product than just rolling out company-owned models.”
Litalien said the whole country is open for franchising, and the brand is offering single-unit and regional development deals. With the latter, franchisees can own a territory with a population of 1 million or more. From there, they can open their own units or support independent franchisees in the territory.
The first 10 regional developers will be in a Presidents Club, providing them with reduced territory fees, as well as increased sales and support compensation. At a recent franchising event, Litalien said the brand received interest from potential partners in Florida, New Jersey, New York and South Carolina. He said in the next six months, the brand hopes to have 12 franchisees signed.