TruGolf Links Signs Franchise Development Deal with Tennessee Native & Entrepreneur

Rhea-AI Summary

TruGolf Holdings Inc (Nasdaq: TRUG) has announced a significant franchise development deal with Tennessee entrepreneur John Young to develop 40 new TruGolf Links centers across the state. The expansion will begin with a flagship location in Knoxville.

Young joins TruGolf's President's Circle, to the first twelve Regional Developers, receiving benefits including reduced territory fees, enhanced compensation, and discounted access to simulator bays. As a Regional Developer, he will also serve as the distributor for TruGolf's product line in Tennessee.

TruGolf Links facilities will feature state-of-the-art golf simulators, with flagship locations requiring 5,000+ square feet and including a double-size bay with stadium seating. Standard facilities will occupy 3,800+ square feet with five simulator bays, full food and beverage service, club cleaning station, and pro shop.

Positive

• Major expansion with 40 new franchise locations planned in Tennessee
• Regional Developer gains exclusive distribution rights for TruGolf products
• Comprehensive revenue streams: simulators, food & beverage, pro shop

Negative

• None.

Insights

Financial Analyst

TruGolf's regional development agreement in Tennessee represents a strategic expansion approach that minimizes capital requirements while potentially maximizing territorial growth. The deal for 40 new locations creates multiple revenue streams: initial territory fees, per-unit franchise fees, ongoing royalties, and equipment/technology sales. For a company with approximately $10.8M market capitalization, this capital-light expansion strategy makes sense.

The Regional Developer model transfers development risk to local entrepreneurs while allowing TruGolf to scale its footprint rapidly. Each TruGolf Links facility requires 3,800-5,000+ square feet with simulator bays and food/beverage service, positioning these as mid-size entertainment venues with diverse revenue potential.

Particularly valuable is Young's dual role as both developer and product distributor, creating additional sales channels for TruGolf's simulator technology beyond franchise locations. This approach establishes recurring revenue through technology licensing, software updates, and franchise royalties – precisely the high-margin revenue streams that build business stability.

While the announcement lacks specific financial projections or terms, making near-term revenue impact difficult to quantify, the deal validates TruGolf's franchise concept. The 40-unit development represents significant scale, though likely implemented over several years with varying capital requirements for each location. The "President's Circle" designation suggests preferential terms for early developers, a common approach when launching franchise systems.

Iconic Golf Simulator Company Now Franchising Grants Local Entrepreneur Opportunity to Develop 40 New Centers

KNOXVILLE, Tenn., March 6, 2025 /PRNewswire/ -- TruGolf Links Franchising, LLC ("TruGolf"), wholly owned by TruGolf Holdings, Inc. (Nasdaq: TRUG), a leading provider of golf simulator software and hardware, announced today the signing of another regional development deal. Signed with Knoxville Tennessee native, John Young, an entrepreneur and problem solver with a passion for building ventures that bring people together. As the Regional Developer for TruGolf Links, he is leading a statewide expansion of this cutting-edge indoor golf concept, starting with the first flagship location in Knoxville. With plans to develop 40 locations across Tennessee, John is focused on creating a modern, accessible, inclusive, and community-driven golf experience for players of all skill levels. With a background in accounting, operations, and growing businesses, John previously founded a successful cloud-based accounting firm dedicated to serving nonprofits nationwide. His expertise in strategic growth and his deep ties to the Knoxville community make him the ideal leader to bring TruGolf Links to Tennessee.

"We started TruGolf Links because of our passion for golf any time of the year," said Chris Jones, founder and CEO of TruGolf, Inc. "We need to ensure both owner-operators and investors are supported, and we've developed an innovative approach to achieve this by offering a variety of growth paths. We are thrilled to have John join us on this mission to deliver our tech-forward vision to golfers everywhere."

John's love for golf is rooted in family. Though he considers himself an amateur golfer at best, he grew up hearing stories of his dad's annual golf trips and has long admired how golf can connect people. Now, John is excited to build a space where families, friends, and golfers alike can make their own memories—rain or shine.  John lives in Knoxville with his wife, Megan, who works in health research and process improvement, and their adventurous three-year-old son, Holden—who already has his own mini set of golf clubs. As a family, they love traveling, tackling DIY home projects, and simply enjoying time together.

"I'm thrilled to bring TruGolf Links to Tennessee, starting with our first flagship location right here in Knoxville" says Young, "with the goal of making golf more accessible, welcoming, and fun—whether you're a scratch golfer, a weekend player, or just looking for a great place to hang out. For me, this is more than just a business venture; it's personal. Growing up, I saw firsthand how golf brings people together and now, it's something I get to experience myself—golf has become one of the best ways for my friends and me to get out, disconnect from the daily grind, and just enjoy time together.  That's what we're creating with TruGolf Links—an incredible space where people can connect, compete, and make memories. Knoxville is just the beginning, and I can't wait to see the impact TruGolf Links will have across the state."

"We could not be more excited to have John as our developer for the State of Tennessee and a member of our President's Circle, reserved for our first dozen Regional Developers" said Dr. Ben Litalien, Chief Development Officer, "He is an amazing business leader whose passion for golf now gives him the opportunity to develop a significant network of TruGolf Links Centers." The President's Circle will be the company's franchise advisory council, along with receiving benefits such as reduced territory fees, enhanced sales and support compensation, and significantly discounted access to the world class TruGolf simulator bays. "Besides developing TruGolf Links locations across the State, John is also our distributor for the entire product line of TruGolf, an unparalleled opportunity in conjunction with his franchise".

TruGolf Links offers a comprehensive franchise program, including individual and regional developer opportunities. Each facility will feature TruGolf's state-of-the-art software and hardware, five or more simulator bays, an upscale bar and dining area, a club cleaning station, and a pro shop. The flagship is designed for 5,000 square feet or more and includes a unique double-size bay with stadium seating for events. Standard facilities will occupy 3,800 square feet or more, feature five standard simulator bays, and offer full food and beverage service.

For more information about TruGolf Links, visit www.trugolflinks.com or contact Andrew Johnson at andrewj@trugolf.com. Connect on the brand's social pages by visiting https://www.linkedin.com/company/trugolflinks and/or https://www.facebook.com/trugolflinks/.

About TruGolf, Inc.
Since 1983, TruGolf has been passionate about driving the golf industry with innovative indoor golf solutions. TruGolf builds products that capture the spirit of golf. TruGolf's mission is to help grow the game by attempting to make it more Available, Approachable, and Affordable through technology - because TruGolf believes Golf is for Everyone. TruGolf's team has built award-winning video games ("Links"), innovative hardware solutions, and an all-new e-sports platform to connect golfers around the world with E6 CONNECT. Since TruGolf's beginning, TruGolf has continued to attempt to define and redefine what is possible with golf technology.

About TruGolf Links Franchising
While the company offers individual franchises, the focus of its expansion efforts is with Regional Developers who acquire a territory of 1M or more in population, open a flagship location within that territory, then develop the territory with additional units they own or with independent franchisees.  Regional Developers are compensated for attracting franchisees and providing support locally to all TruGolf Links locations within their territory.

For more information about TruGolf Links franchise program, visit: www.trugolflinks.com/franchising.

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SOURCE TruGolf Holdings, Inc.

FAQ

How many TruGolf Links centers will be developed in Tennessee under the new franchise deal?

The new franchise agreement includes plans to develop 40 TruGolf Links centers across Tennessee, starting with a flagship location in Knoxville.

What are the facility requirements for a TruGolf Links franchise location?

Flagship locations require 5,000+ square feet with a double-size bay, while standard facilities need 3,800+ square feet with five simulator bays.

What benefits do TruGolf (TRUG) Regional Developers receive in the President's Circle?

President's Circle members receive reduced territory fees, enhanced sales and support compensation, and discounted access to simulator bays.

What amenities are included in a TruGolf Links franchise location?

Locations include golf simulator bays, upscale bar and dining area, club cleaning station, pro shop, and full food and beverage service.