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GOLF USA Franchise Complaints

The Golf USA franchise has a disturbingly high SBA loan default rate of 50%.  Golf USA is listed by the SBA as one of the worst franchises by SBA loan default, along with other golf store franchises Pro Golf (76%) and Golf ETC. (71%).

Are you familiar with the Golf USA franchise opportunity? Please share a comment below.

According to the Small Business Administration, Golf USA franchisees received 46 SBA-guaranteed loans since 2001; half of those loans have been defaulted on by Golf USA franchise owners.

The Golf USA Franchise has a failure rate of 50% for SBA-backed franchise loans

Despite the obscenely high failure rate, the Golf USA website still cheerfully and aggressively promotes the Golf Etc. franchise opportunity, stating:

In 2011 we were once more voted the ”#1 golf franchise” by Entrepreneur magazine. We have the largest support team in the golf industry, serving over 100 locations in 18 countries…

Partnering with Golf USA will give you the tools and training to be your own boss. Our program is designed to help you open your own business and build a solid foundation for the future.

What’s sad is that it’s likely that Golf USA franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and half of them were unable to repay those franchise loans… despite serious incentive to do so.

Are you familiar with the Golf USA opportunity?

What do you think accounts for the SBA loan failure rate of Golf USA franchise owners?

What steps should Golf USA take to stop further franchise failures?

Has Golf USA taken serious action to address the problems that led to the 71% loan failures?

Please share a comment, opinion or insight below.



Tags:  Golf USA, Golf USA franchise, Golf USA complaints, golf franchise, golf store franchise, golf store, start a golf store, franchise opportunity, retail franchise, franchise failure rate, worst franchise, sba failure rates, SBA franchise loans, franchise information, unhappy franchisee,

One thought on “GOLF USA Franchise Complaints

  • Fly on the Wall

    Golf USA is an abysmal failure. They try to get people to open stores in small towns so owners have better margins on the product with less competition. Problem is there are fewer buyers in small towns. Margins are very thin in the golf business if sticking with pro-line equipment so they tell the owners to direct people to the off-label or proprietary brands. In a higher end area customers want pro-line clubs. As a previous owner I was buying golf balls (wholesale) for more than Walmart was selling them for (retail). The inventory turns were much less than the franchisor alluded to. All the store really did was trade dollars on merchandise but after overhead is factored in (rent, salaries, equipment payments, royalty payments, etc.) nothing but losses occurred. Unless an operation has vast size a thin margin retail store is doomed to fail. All Golf USA wants is your $40,000 franchise fee and then they’re done with you. Tough lesson.

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