Topgolf has become one of the most popular names in entertainment, combining golf with dining, music, and social experiences. Its venues attract not only golfers but also families, groups of friends, and corporate events, making it an appealing investment opportunity. For those interested in franchising Topgolf in the United States, understanding the costs is an essential first step. Launching a location involves a large financial commitment, and investors should be prepared for a project that requires both significant capital and long-term planning.

Initial Franchise Fee

Like many franchises, Topgolf requires an initial franchise fee to gain the rights to operate under its brand name. For Topgolf, this fee is reported to be around $75,000. This upfront payment provides access to the company’s established brand, training, and operational support. However, this figure represents only a small fraction of the total investment required to open a venue.

Total Investment Range

Topgolf is not a traditional food or retail franchise. Its venues are large-scale entertainment complexes that combine sports, technology, dining, and event spaces. Because of this, the overall cost to develop a Topgolf location is far higher than many other franchises. Investors should expect to commit tens of millions of dollars to get a venue off the ground. Depending on the size of the facility and the location, the total investment often ranges between $15 million and $50 million.

This cost includes land acquisition or leasing, construction of the multi-level driving range, advanced golf ball tracking technology, bars and restaurants, event spaces, and furnishings. Each Topgolf venue requires a large footprint and must be built to deliver the full customer experience that the brand is known for. The scale of these projects is one of the key reasons why the investment is so high compared to other franchises.

What Drives the Cost?

The biggest driver of cost in a Topgolf franchise is real estate and construction. The venues typically feature three levels, dozens of hitting bays, specialized ball-tracking systems, high-tech targets, and large kitchens and bars. Building such a complex requires significant capital investment and months, if not years, of development.

Technology is another major factor. Topgolf’s signature experience depends on advanced tracking systems and specialized equipment that make the games interactive and fun. These systems must be installed and maintained to meet brand standards.

Food and beverage service also play a large role. Each venue includes full-service bars and kitchens, requiring restaurant-grade equipment, design, and staffing. On top of that, permits, licenses, signage, furniture, and opening marketing campaigns all add to the overall investment.

Ongoing Expenses

Beyond startup costs, Topgolf operators must consider ongoing financial commitments. These include royalty payments to the franchisor, contributions to marketing funds, staffing costs, utilities, and maintenance of both the building and the technology systems. Given the size of the operation, ongoing expenses are high, but they are balanced by the potential for significant revenue from multiple streams: gaming, food and beverage sales, events, and merchandise.

Preparing for Investment

Because of the scale of the required investment, potential franchisees typically need to have access to substantial capital and financing options. Topgolf is more suited to well-funded investors, private equity groups, or large hospitality companies rather than individual operators. Before moving forward, it is important to carefully review financial projections, evaluate suitable real estate, and ensure that funding sources are secured.

Summary

Starting a Topgolf franchise in the United States is a major financial undertaking. While the initial franchise fee is about $75,000, the full cost to build and open a venue ranges from $15 million to $50 million, depending on location and size. This makes Topgolf one of the more capital-intensive franchise opportunities on the market. For those with the resources, however, it offers the chance to invest in a unique and growing entertainment brand that combines sports, food, and social experiences under one roof.