Franchising 101

Everything you'd want to know before your first conversation: what a franchise is, what the FDD is, who does what, and why so many owners choose a system over going it alone.

The basics

What is a franchise?

A franchise is a licence. Shotgun Golf, the franchisor, owns the brand, the operating system and the technology, and grants you, the franchisee, the right to run a location under that brand, using that system, in your own territory, for a set term. In return you pay an initial franchise fee and ongoing royalties.

You own the business: the company, the lease, the equipment and the profits. We own the brand and the playbook and are responsible for keeping both improving. It's a partnership with clearly divided jobs, written into a franchise agreement that both sides sign.

Term
Typically ten years with renewal rights, set out in the franchise agreement.
Territory
A defined trade area in which the franchisor will not open or license another location.
Fees
An initial franchise fee on signing, then a royalty and brand marketing fund as a percentage of gross revenue.
Standards
The franchisee operates to the brand's standards; the franchisor supports, audits and updates them.

Disclosure

What is an FDD?

The Franchise Disclosure Document, or FDD, is the document we're required to give you before you sign anything or pay anything. In Ontario it's governed by the Arthur Wishart Act (Franchise Disclosure), 2000; Alberta, British Columbia, Manitoba, New Brunswick and Prince Edward Island have their own equivalent legislation.

You'll receive it at least 14 days before signing a franchise agreement or paying any money. That time is yours: read it, take it to a franchise lawyer and an accountant, and call the existing franchisees listed inside.

It isn't a sales brochure. It's the reference for every number and obligation on this website, and where anything here differs from the FDD, the FDD applies.

Read all of it, have a lawyer who practises franchise law review it, and call the franchisees on the list. We'd rather you ask every question now.

What the FDD contains

  • Background of the franchisor, its directors and officers, and any litigation or bankruptcy history
  • Every fee and cost: initial fee, royalties, brand fund, technology fees, and the estimated initial investment
  • Financial statements of the franchisor
  • A list of current franchisees, and franchisees who left in the last year, with contact details so you can call them
  • Territory rights, restrictions on what you can sell and where, and any sourcing requirements
  • Your obligations and the franchisor's obligations, including training and support
  • Term, renewal, transfer and termination conditions
  • A copy of the franchise agreement and every other agreement you will be asked to sign

Why a system

Why owners choose a franchise

  • A proven model

    You open with a format that already works in multiple locations: pricing, layout, hours, marketing and operations refined by real customers, not guesses.

  • Brand recognition from day one

    Golfers already search for the brand, members already travel between locations, and the national marketing fund is working before your doors open.

  • Technology you could not build alone

    Booking, payments, keyless access, bay automation, loyalty and support run on a platform the franchisor maintains and improves. An independent has to assemble and support all of it.

  • Training and ongoing support

    Operator training, an operations playbook, and a support team that has opened and run locations before. Problems you hit have usually been solved already.

  • Purchasing power

    Equipment, simulators, turf and build packages are specified and priced at system scale rather than as a one-off order.

  • Financing leverage

    Lenders underwrite a documented system with comparables. That means more credit on better terms than most first-time independents can access.

  • A network of peers

    Other franchisees are a resource for ideas, benchmarks and honest advice. Independents compete alone.

  • Lower risk, faster start

    Standardized build scopes and a known ramp shorten time to open and reduce the expensive early mistakes that sink new venues.

Who does what

Roles and responsibilities

A franchise works because each side knows its job. Here's how it divides at Shotgun Golf.

Shotgun Golf provides

  • The brand, trademarks and the right to use them in your territory
  • The operating system: booking, payment, access control, bay automation, loyalty and support platform
  • Site selection guidance and lease review
  • Pre-approved layouts, equipment specifications and build scopes
  • Operator training and the operations playbook
  • National marketing: SEO, paid search, brand campaigns and the website
  • Remote monitoring and support, and ongoing product and technology development
  • Standards, audits and updates that protect the brand for every location

The franchisee provides

  • Capital, financing and the local operating company
  • The lease and a build-out to the brand's specifications
  • Day-to-day ownership: maintenance, cleanliness, supplies and equipment upkeep
  • Local marketing, community relationships and member experience
  • Operating to brand standards and using the approved platform and suppliers
  • Royalty and brand-fund payments, and timely reporting
  • Staffing decisions if any (most locations run unstaffed) and local compliance
  • Growth: the option to open additional locations as an existing operator

The honest comparison

Why franchise instead of going independent?

Independence has real appeal: no royalties and total freedom. It also means building the brand, the technology, the vendor relationships and the bank's confidence from scratch. Here's the trade-off, honestly stated:
Franchise with Shotgun GolfIndependent simulator venue
Brand and demand at openingEstablished, searched for, members already in the networkUnknown; built from zero with local advertising
Technology platformBooking, access, automation and loyalty provided and maintainedAssembled from separate vendors, integrated and supported by you
Build cost certaintyStandardized scopes and equipment listCustom design; costs discovered as you go
Lender confidenceSystem comparables; franchise-lending teams; CSBFL-eligibleSingle-venue business plan; harder underwriting
Time to openAbout four months in the ideal caseOften 9–18 months including design and vendor selection
MarketingNational fund plus local playbookAll local, all self-funded
Support when something breaksFranchisor support team and peer networkYour vendors, your problem
Ongoing costRoyalty and brand fund on revenueNo royalties
FreedomOperate within brand standardsComplete, including the freedom to make every mistake yourself

For most owners the royalty buys back far more than it costs: a faster opening, a fuller calendar in month one and fewer expensive lessons. For an experienced operator set on building their own brand, independence can still be the right call. Either way, we'd rather you choose with the full picture.

Glossary

Terms you'll see

FDD
Franchise Disclosure Document: the legally required disclosure delivered at least 14 days before you sign or pay.
Franchise fee
One-time fee paid on signing for the licence and initial support.
Royalty
Ongoing percentage of gross revenue paid for the brand, system and support.
Brand marketing fund
Percentage of gross revenue pooled for national marketing that benefits every location.
Territory
The defined area in which your location has exclusivity.
Term and renewal
The length of the agreement and the conditions for extending it.
Discovery period
The weeks between receiving the FDD and signing, used for due diligence, franchisee calls and a discovery call with the franchisor.
Transfer
Selling your franchised business to a new owner approved by the franchisor.

Ready to read the real thing?

Request the FDD. You'll have at least 14 days with it, and we hope you use every one of them.