D-BAT Franchise in 2024: Costs, Fee & FDD
Discover the potential of owning a D-Bat franchise, a leading name in baseball and softball training with proven profitability and multiple revenue streams. Learn about the investment, fees, and benefits. Read our full analysis now!
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D-Bat, founded in 2002 by former MLB player Mike G. W. Hervey, has become a leading name in sports training, particularly in baseball and softball. The franchise offers state-of-the-art facilities designed for athletes of all skill levels, providing everything from batting cages and pitching tunnels to personalized coaching. D-Bat’s commitment to quality and expert training has helped it become a trusted brand in the sports training industry, especially in youth sports development.
The franchise specializes in baseball and softball training, offering private lessons, group sessions, and team coaching. Along with its training services, D-Bat also sells high-end sports equipment, including bats, gloves, and apparel. Its core customers range from aspiring youth athletes to professional players, with many parents and sports teams seeking training for skill improvement.
D-Bat operates over 50 locations across the U.S. and continues to expand. The brand serves hundreds of athletes daily, offering a blend of individual and team training sessions. Its rapid growth highlights the strong demand for specialized training facilities that cater to both recreational and competitive athletes.
The franchise offers extensive support, including training programs for new franchisees that cover operations, customer service, and marketing strategies. Ongoing support includes marketing materials, sales strategies, and a community of franchisees to share insights and best practices, ensuring that each location thrives.
D-Bat Franchise Insights
- D-Bat was founded in 1993 and has been offering franchises since 2007. The brand now has 153 locations in the U.S., all of which are franchised, indicating the franchise’s strong presence and growth in the market.
- With a focus on both individual and team training, D-Bat serves athletes of all ages and skill levels, making it an appealing investment for franchisees targeting the broad youth sports market. The franchise’s extensive training programs and equipment sales provide multiple revenue streams, creating a solid foundation for profitability.
- The franchise has a well-established operational model, and with its steady growth, it offers a great opportunity for prospective franchisees interested in the sports and fitness sector, especially with its focus on sports training and equipment sales.
D-Bat Franchise Key indicators
Growth YOY (%)
20%
vs industry 5%
Total U.S. Franchised Units
153
3-Year Failure Rate
2%
vs industry 12%
Sales-to-Investment ratio
1.2:1
How much does it cost to open a D-Bat franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a D-Bat franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a D-Bat franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a D-Bat below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Lease Deposit | $7,000 | $20,000 |
| Leasehold Improvements | $100,000 | $375,000 |
| Facility Build-out | $213,000 | $330,000 |
| Construction Management and On-Site Training Fee | $6,000 | $6,000 |
| Computer Systems | $15,000 | $20,000 |
| Brochures, Press Kits, and Sales Collateral | $2,000 | $3,000 |
| Signage and Graphics (Interior and Exterior) | $17,000 | $21,000 |
| Uniforms | $250 | $1,000 |
| Permits and Licenses | $3,000 | $5,000 |
| Insurance | $500 | $1,000 |
| Utility Deposits | $700 | $1,600 |
| Travel-Related Expenses During Training | $500 | $2,000 |
| Initial Advertising and Marketing Products | $5,000 | $7,500 |
| Blueprints, Plans, and Permits | $8,000 | $25,000 |
| Initial Pro Shop Inventory | $33,000 | $40,000 |
| Initial Cage Usage Supplies | $15,000 | $23,000 |
| Furniture, Fixtures, and Equipment | $14,500 | $25,000 |
| Legal, Accounting, and Professional Fees | $1,000 | $5,000 |
| Additional Funds (3 Months) | $50,000 | $75,000 |
| Total | $536,450 | $1,031,100 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a D-Bat franchise, the required capital involves both the initial investment costs and a net worth requirement set by D-Bat. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $536,450 to $1,031,100. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Around $150,000 to $250,000. Liquid assets refer to the cash or assets that can be quickly converted into cash to cover the initial costs and provide working capital.
- Net Worth For a franchise with a total investment range like D-Bat, the net worth requirement could range between $500,000 to $1 million. This would include all assets owned by the franchisee, not just liquid assets.
How much does a D-Bat franchise owner make?
Calculating the salary of a D-Bat franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a D-Bat franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
D-Bat Revenue & Gross Sales
Based on the latest data, D-Bat franchises achieved a median gross sales of $957,542. This strong financial performance underscores the brand’s robust consumer demand and potential for lucrative returns for franchisees.
Which key factors impact the average revenue performance of D-Bat franchisees?
The performance of U.S. franchisee median gross sales for D-Bat in the past year compared to the prior year could have been influenced by several factors. The ongoing recovery from the pandemic likely contributed to an increase in consumer activity, particularly in sports and fitness, as people returned to in-person training and recreational activities. Additionally, the growing popularity of youth sports and an increased focus on health and fitness may have boosted demand for D-Bat’s services. Furthermore, the franchise’s expansion to more locations likely helped drive overall sales growth, while improvements in its marketing strategies and enhanced training offerings may have contributed to higher customer retention and acquisition. Economic factors such as inflation or shifts in disposable income could also play a role in the fluctuation of sales.
D-Bat Franchise Operational Costs
When opening a D-Bat franchise, the key ongoing operational costs to consider beyond general franchise-related fees include:
- Staffing Costs This includes salaries for trainers, coaches, front desk personnel, and management. The cost will depend on the size of the facility and the number of staff needed to handle operations, customer service, and training.
- Facility Maintenance and Rent Rent or lease payments for the location, which can vary based on the size of the space and its location, will be a significant ongoing expense. Maintenance costs for the building, including utilities and repairs, should also be factored in.
- Equipment Maintenance Regular upkeep and replacement of the high-end sports equipment, including bats, gloves, and training tools, as well as maintenance of the batting cages and pitching tunnels, will be essential to ensure smooth operations.
- Insurance Liability insurance, property insurance, and workers’ compensation insurance are crucial ongoing costs to protect the business and employees.
- Marketing and Local Advertising While the national brand fund covers some marketing, ongoing local advertising, such as social media campaigns, local sponsorships, and events, will be necessary to attract new customers and retain existing ones.
- Supplies and Inventory Restocking sports equipment and apparel for retail sales within the facility is a constant operational expense, along with any consumables used in daily operations (e.g., cleaning supplies).
These operational costs will vary depending on the scale and specific location of your franchise, but they represent some of the major ongoing expenditures.
D-Bat Franchise Fees
When opening a D-Bat franchise, several ongoing fees contribute to the operational costs, which are essential to understand as part of your overall investment. These fees support the franchise’s management, advertising, and local promotions, and can affect your monthly and quarterly budgets. Here’s a breakdown of the relevant ongoing fees:
- Royalty Fee You might be charged up to 12% of Gross Revenue, depending on the franchise’s performance or specific agreements.
- Advertising and Promotion Fund Contribution Set at 2.5% of Membership Fees, this is also due monthly. It goes towards the franchisor’s national advertising and promotional efforts to increase brand visibility.
- Local Advertising/Advertising Cooperative Contribution Charged quarterly at 2.5% of Membership Fees, this fee supports local advertising initiatives and any required contributions to cooperative advertising, which helps promote your franchise within its local market.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating a D-Bat franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by D-Bat.
D-Bat Franchise Earnings
Based on the most recent data, the median gross sales for a D-Bat franchise were approximately $957,542. With earnings for the owner-operator at $143,631, franchisees can expect a solid return on their investment. The earnings represent a significant portion of the gross sales, showing that the franchise offers good profitability potential, especially if the owner is actively involved in the business operations.
These figures suggest that, for a typical owner-operator, the business model can provide a relatively healthy income, though this is subject to variations based on factors like location, market conditions, and operational efficiency. Given the strong earnings in relation to gross sales, D-Bat seems to offer a good opportunity for franchisees who are actively engaged in the day-to-day operations of their center.
How to Open a D-Bat Franchise
Becoming a D-Bat franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a D-Bat franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application If you decide to move forward, you’ll submit a formal franchise application. This will include your financial qualifications, previous business experience, and any other information D-Bat requires to evaluate your suitability as a franchisee.
- Franchise Approval & Agreement After your application is reviewed, D-Bat will either approve or decline your application based on their evaluation criteria. If approved, you’ll receive the franchise agreement, which outlines your responsibilities, financial commitments, and operational guidelines. Once signed, you’ll officially become a D-Bat franchisee.
- Location Selection & Site Development With D-Bat’s guidance, you’ll choose an appropriate location for your franchise. The company offers support in site selection to ensure that your location meets the brand’s standards and has strong customer potential. Once a site is selected, you’ll begin building out the facility according to D-Bat’s specifications, including equipment installation and interior design.
- Training & Pre-Opening Support D-Bat provides comprehensive training programs that cover every aspect of running the franchise. This includes operational training, customer service, marketing strategies, and managing day-to-day operations. You’ll also receive pre-opening support, such as assistance with hiring staff, local marketing, and preparing the facility for launch.
- Grand Opening & Launch After completing the necessary training and final preparations, your franchise will open for business. D-Bat typically offers marketing support to help generate interest in the opening. From here, you’ll begin operating your business according to the franchise’s model and start serving customers.
Pros & Cons
Pros
Strong Brand Recognition: D-Bat is a well-established brand in the baseball and softball training industry, with a reputation for high-quality training and equipment. This recognition can help attract customers and build trust from the start.
Growing Market: The demand for youth sports, especially baseball and softball, continues to grow, with many families seeking training opportunities for their children. D-Bat capitalizes on this by offering both individual and team training programs.
Multiple Revenue Streams: D-Bat offers not only training services but also retail sales of sports equipment and apparel. This diversification helps generate income from different sources, reducing reliance on one segment of the business.
Proven Business Model: With over 150 locations, D-Bat has a proven track record of success. The brand’s consistent growth and positive financial performance suggest that it is a reliable business model for franchisees to invest in.
Cons
High Initial Investment: The total investment range of $536,450 to $1,031,100 is a significant upfront commitment. This can be a barrier to entry for some potential franchisees, particularly those with limited access to capital.
Ongoing Operational Costs: The franchise requires monthly and quarterly fees, including management, advertising, and local marketing contributions. While these fees support the brand, they can add up and affect profitability, especially in the early stages of the business.
Intense Competition: The fitness and sports training market is competitive, with numerous alternatives for customers. D-Bat faces competition not only from other specialized training centers but also from more general fitness centers and online training programs.
