What should I ask about a driving range’s lesson pros and who owns the students?
Ask whether the pros are employees, contractors or tenants, and whether their students book through the range or through them directly. The student list may belong to the pro, not the business. Get the arrangement in writing and have your lawyer review it before you depend on lesson income.
Begin with the contracts. Ask to see each pro’s agreement and read how lesson revenue is split, who sets prices and who handles bookings. A pro who rents space and keeps all lesson fees creates a very different business than one who is paid by the range.
Then ask about the students. Who holds their contact details, the range’s booking system or the pro’s own phone? If a pro leaves after the sale, do the students leave too? Ask the seller what happened in the past when a pro quit, and whether any agreement limits a departing pro from teaching nearby. Talk to the pros directly, with the seller’s permission. Find out whether they plan to stay, what they expect from a new owner and whether they would sign a fresh agreement. Look at junior clinics and group programs separately, since they often run under the range’s name. Finally, ask about insurance and certifications for each instructor, and about anything the range promised to a pro that is not written down. Your lawyer can tell you what a restrictive clause actually does. Ask how new students usually find a pro, whether through the range’s website, its signs or word of mouth, since that shows who really brings the students in.
Key takeaways
- Find out whether each pro is an employee, contractor or tenant.
- Ask who holds the student contact list and booking records.
- Speak with the pros before the deal closes.
Related reading
13 pages on the same subject, grouped by topic.
Selling
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Due diligence
Buying
- Expert answerHow do I find out why adult students quit a music lesson studio?
- Expert answerWhat should I check before buying a golf driving range?
- Expert answerHow can I tell if a driving range for sale is profitable?
- Expert answerHow do I check a music store’s lesson program and teacher arrangements before buying?
- Expert answerHow do I check the teacher roster of an adult music lesson studio?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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