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franchises of the most permanent
<br />type of mini -golf course. Made of
<br />concrete, these courses are de-
<br />signed to face the elements, and,
<br />generally speaking, are immovable.
<br />Because of this, and considering
<br />investment versus profit potential,
<br />the company emphasizes where the
<br />courses are set-up, and offers three
<br />"situations" for its franchisees.
<br />* Situation 1 places an 18 -hole
<br />course on a 100 -square -foot lot,
<br />with additional space for parking as
<br />well as a building for storage, res-
<br />trooms, and a pro shop. This situa-
<br />tion, the company feels, is best
<br />suited to small town environments
<br />(populations of less than 15,000).
<br />The franchise fee is $3,500 and con-
<br />struction cost is usually about
<br />$60,000.
<br />• Situation 2 places two to four
<br />courses working from one club-
<br />house which has a game room with
<br />party facilities, and concession
<br />areas. The franchise fee is about
<br />$15,000 and course construction
<br />costs from $60,000 to $650,000.
<br />Situation 2 is best suited to areas
<br />which have a population range of
<br />30,000 to 100,000.
<br />0 Situation 3 is a state-of-the-art
<br />course for franchisees and investors
<br />who want an elaborate set-up.
<br />These themed environment
<br />courses feature waterfalls, lakes, an-
<br />imal props, and tunnels. The initial
<br />franchise fee is $15,000 and con-
<br />struction costs could be as high as
<br />$2 million plus the cost of land.
<br />At the other end of the financial
<br />spectrum, "travelling" mini -golf
<br />courses are mobile units which can
<br />be taken to wherever the customers
<br />are. Golf Ago -Go, based in Iowa,
<br />pioneered this set-up.
<br />Keith Namanny, co-owner of the
<br />company, says that this mobility is
<br />the main advantage. (With other
<br />courses) "you have to rent a build-
<br />ing or land and wait for the public to
<br />come to you. You can take ours to
<br />where the money is." He added that
<br />during the summer, this includes
<br />festivals and carnivals, and that dur-
<br />ing the winter a popular place to set
<br />up a course for the day is inside
<br />taverns and restaurants.
<br />Flea markets, shopping malls,
<br />college campuses, and city parks are
<br />also considered ideal sites for a
<br />day's business.
<br />The nine greens, each with its
<br />own method to challenge the gol-
<br />fer, are attached to the trailer, which
<br />can also serve as a concession stand.
<br />The price for this type of unit is
<br />about $7,500. The company also
<br />offers a free-standing unit which
<br />costs under $4,000.
<br />Middle -ground, "portable" mini -
<br />golf courses are pre -fabricated from
<br />wood and installed on the buyer's
<br />property, usually in less than a day.
<br />These courses involve a relatively
<br />small initial investment. You can
<br />purchase a nine -hole course and in-
<br />stall it on your property for less than
<br />$7,000. Different models of 18 -hole
<br />courses range in price from $12,500
<br />to nearly $17,000. Larger size
<br />courses are also available—up to 54
<br />holes at a cost of almost $48,000.
<br />Cost of land, of course, varies de-
<br />pending on your location. As for the
<br />size needed, a nine -hole course can
<br />easily be installed on 2,000 square
<br />feet, or an 18 -hole course on 4,000
<br />square feet.
<br />Mini -Golf, Inc. (MGI), of Jessup,
<br />Pennsylvania, a company which spe-
<br />cializes in the manufacture and in-
<br />stallation of these units, can "tailor
<br />make a course for the buyer's area,"
<br />said Joe Rogari, marketing director
<br />of the firm. Therefore, a nine -hole
<br />course can be installed on as little as
<br />1,250 square feet. Of course an 18 -
<br />hole course would take about
<br />double that space.
<br />Would-be entrepreneurs should
<br />keep in mind that they can rent land,
<br />or a building for an indoor course.
<br />This will help reduce the initial
<br />start-up costs as you can take rent
<br />out of profits.
<br />If, however, you are already the
<br />owner of a recreational business,
<br />and you have some land, or an area
<br />of your building that you're not us-
<br />ing, a portable mini -golf course can
<br />help your established business and
<br />augment your income.
<br />Portable mini -golf courses have
<br />been successfully installed in a vari-
<br />ety of locations—from ice cream st-
<br />ands to bowling alleys to parks and
<br />resorts.
<br />"It definitely helped the business,
<br />more than I anticipated," said Mike
<br />Lanke, owner of Honey Creek
<br />Greens, a recreational complex
<br />which includes indoor and outdoor
<br />mini -golf plus video games and a
<br />snack bar. He added that "weekdays
<br />are slow, but on weekends it's hard
<br />to get in."
<br />Most owners of recreational busi-
<br />nesses would agree that having
<br />more activities available in one loca-
<br />tion helps bring in people. There-
<br />fore, revenue generated through
<br />the addition of a mini -golf course
<br />may not come directly from golf.
<br />The additional business that a mini -
<br />golf course attracts may, however,
<br />increase the revenue brought in by
<br />the other activities available on the
<br />site.
<br />Art Bull, manager of Mini Putter
<br />Entertainment Center in Montana,
<br />said, "For every dollar I take in on
<br />mini -golf, I take in 90 cents on
<br />snacks."
<br />Although mini -golf is a cash busi-
<br />ness and most operators won't
<br />quote profits, Alex Goldstein, mana-
<br />ger of Gotham Golf, Inc., located in
<br />Central Park in New York City, es-
<br />timates a 25 percent increase in
<br />revenue since he added the golf
<br />course to a skating rink.
<br />Mini -Golf, Inc. estimates gross
<br />revenue, depending on the loca-
<br />tion, of about $4,200 per week
<br />based on 200 players per day paying
<br />$3 each—the average fee for a game
<br />on an 18- or 19 -hole course.
<br />Variations depending on the size
<br />P&R/DECEMBER 1990/33
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