Published on 11 Apr 2022 Time 8 min read Last update by 29 May 2024

D-BAT Franchise Cost Takes 5-10+ Years to Make Money Back (2024)

This article is based on its most recent FDD.

D-BAT is a renowned baseball academy franchise in the sports industry that originated in Addison, Texas in 1998. As of 2021, the D-BAT franchise has academies in 100 locations that are spread across 30 states; out of these 100, 0 are corporate units because all 100 are franchise units. D-BAT provides kids with private one-on-one lessons in baseball with exceptionally well-lit, indoor climate condition triangle golf facilities that have been developed by D-BAT for optimized training sessions.

Follow the podcast

Apple Podcast    Spotify    Google Podcast

Background and Management

After all, D-BAT is a franchise where you can own and operate your baseball academy franchise. Owning a franchise is a lot of work and money so it is necessary to take critical consideration before investing. Below is all the information about owning D-BAT that all prospective franchisees should know beforehand. The business was founded by Cade and Kyles Griffis and, currently, Cade Griffis heads it as the CEO.

D-BAT Franchise Cost & Fees Explained

D-BAT has a different royalty fees structure that charges a royalty fee of 8% OR 40% of the membership fees and it expects the new franchises to contribute 2.5% to advertising.

The initial D-BAT franchise fee is $40,000 and is to be paid fully upfront and is nonrefundable to open a new franchise. The estimated total investment necessary to begin the operation of a D-BAT-s franchise ranges from $494,650 to $967,100. Many of the items in the list are fixed costs that only have to be paid one time like land, building, initial inventory shop etcetera. Please look at the table below to see the initial costs of opening and operating a D-BAT franchise.

d-bat

Your Estimated Initial Investment

Type of Expenditure Amount To Whom Payment Is to Be Made
Initial Franchise Fee $40,000 Us
Lease deposit $7,000 to $18,000 Landlord
Leasehold improvements $55,000 to $300,000 Contractors
Facility Build-out $213,000 to $330,000 Third parties
Construction Management and On-Site Training Fee $6,000 Us
Computer system(s) $15,000 to $20,000 Us, third party suppliers
Brochures, press kits and sales collateral $2,000 to $3,000 Us, third party suppliers
Signage and graphics (interior and exterior), wall signs and instructional posters $12,000 to $15,000 Us, third party suppliers
Uniforms $250 to $1,000 Us, third party suppliers
Permits and Licenses $3,000 to $5,000 Agency
Insurance $700 to $1,500 Insurance Agent
Utility deposits $700 to $1,600 Utility companies
Travel related expenses during training $500 to $2,000 Hotels and restaurants
Initial advertising and marketing products $5,000 to $7,500 Us, DBI, third party suppliers
Blue prints, plans and permits $5,000 to $20,000 Government agencies
Initial pro shop inventory $35,000 to $45,000 Us, DBI, third party suppliers
Initial cage usage supplies $15,000 to $23,000 Us, DBI, third party suppliers
Furniture, fixtures and equipment $28,500 to $48,500 Us, third party suppliers
Legal, accounting and professional fees $1,000 to $5,000 Your accountant, attorney, and other professionals
Additional funds – 3 months $50,000 to $75,000 Various

Comparison with Direct Rivals

D-BAT’s main competitors in the market are Victory MMA Gyms and Fleet Feet. To open a Fleet Feet franchise, you need to have a net worth of at least $250,000 and liquid assets of more than $500,000 which is much higher than D-BAT’s meaning that they’re more exclusive in their choice of franchise owners. They also have a royalty fee of 4% which is probably a result of the strong public image and brand loyalty that they have developed over the past few decades.

Victory MMA Gyms has similar requirements and cost with an initial investment of $55,000 which is higher than D-BAT’s.

D-BAT Franchise Opportunities and Costs

D-BAT provides the majority of its franchise opportunities in the south of the US where baseball is relatively popular. It provides franchise opportunities in Texas, Alabama, and Mississippi. It hopes to provide future opportunities further North in places like Wyoming, North Dakota, and Minnesota. For more detailed information on their franchise locations look at the graphic below.

To open a franchise D-BAT requires you to have a minimum of $75,000 – $200,000 in liquid assets to qualify for ownership of a franchise and a net worth of between $300,000 – $500,000. You may be required to pay for insurance, management fees, territory reservation extension fees, and more. To get a better understanding of the variable costs in running a D-BAT franchise, please look at the table below.

d-bat-franchise

Other Fees

Franchise Agreement

Type of Fee Amount
Management Fee 40% of Membership Fees or 8% of Gross Revenue
Advertising and Promotion Fund Contribution 2.5% of Membership Fees
Local advertising/advertising cooperative contribution 2.5% of Membership Fees
Software License Fee Currently, $125
Additional training Not to exceed $500 per person per day; Not to exceed $5,000 per Facility per year
Mandatory Training $5,000 for up to two individuals we designate
Interest/late Fee 18% per year or the highest interest rate permitted by the jurisdiction in which the Facility is located, whichever is less
Expense we incur in connection with and audit or inspection of your books and records Cost of audit or inspection
Indemnification An amount equal to the value of all losses and expenses that we incur on account of your operation of the Facility
Replacement fee for Manual $500 per volume
Supplier Testing Costs Reimbursement of our actual costs
Insurance Premium Reimbursement of premium plus administrative fee not to exceed 10% of annual premium
Renewal Fee $7,500
Transfer Fee – (payable if you are an individual transferring to a business entity for convenience of operation) $3,000
Transfer Fee – (payable if your Principals are transferring among themselves or transferring a minority ownership interest to one or more third parties) $5,000, plus reimbursement of expenses we incur in connection with the transfer
Transfer Fee – (payable if you are assigning your interest in the Franchise Agreement, transferring all or substantially all of the assets of the Facility, or your Principals are transferring a controlling interest) $15,000, plus reimbursement of expenses we incur in connection with the transfer
Costs and Attorney’s Fees Varies with circumstances

Area Development Agreement

Type of Fee Amount
Assignment Fee – (Assignment of Franchise Rights) $5,000
Transfer Fee – (payable if you are an individual transferring to a business entity for convenience of operation) $3,000
Transfer Fee – (payable if your Owners are transferring among themselves or transferring a minority ownership interest to one or more third parties) $5,000, plus reimbursement of expenses we incur in connection with the transfer
Transfer Fee – (payable if you are assigning your interest in the Area Development Agreement, or your Owners are transferring a controlling interest) $15,000, plus reimbursement of expenses we incur in connection with the transfer

CTA FDD 2

How Much Do D-BAT’s Franchise Owners Make?

Now, as someone looking to enter the franchise market you’d ask, “How much money am I going to make?” Well, let’s look at some statistics to understand this better. The average sales that a D-BAT franchise makes varies depending on the square footage you own for the academies. The total median revenue for an under 15,000 square foot facility is $389,000, for a 15,000 – 19,500 square foot facility it’s $512,000, and for a facility bigger than 19,500 square foot is $712,000. You can find a summary of these statistics in the graph below with a breakdown of the revenues.

Revenues

Revenue Streams Under 15,500 sq. ft. Over 15,500 to 19,500 sq. ft. Greater than 19,500 sq. ft.
No. of Facilities 22 15 25
Lessons $146,632
High: $303,862/Low: $24,308
No. that Met or Surpassed Avg.: 9
Median: $138,273
$179,416
High: $384,974/Low: $52,220
No. that Met or Surpassed Avg.: 5
Median: $130,177
$248,799
High: $563,903/Low: $44,305
No. that Met or Surpassed Avg.: 10
Median: $211,740
Cage Rentals $42,153
High: $78,226/Low: $9,045
No. that Met or Surpassed Avg.: 7
Median: $34,367
$60,972
High: $133,313/Low: $23,414
No. that Met or Surpassed Avg.: 7
Median: $58,182
$90,862
High: $204,782/Low: $19,736
No. that Met or Surpassed Avg.: 11
Median: $87,848
Camps/Clinics $29,656
High: $53,709/Low: $9,182
No. that Met or Surpassed Avg.: 10
Median: $29,760
$67,750
High: $223,669/Low: $12,642
No. that Met or Surpassed Avg.: 5
Median: $55,174
$66,136
High: $186,318/Low: $18,623
No. that Met or Surpassed Avg.: 11
Median: $60,772
Retail Pro Shop $51,963
High: $187,480/Low: $3,020
No. that Met or Surpassed Avg.: 5
Median: $4,196
$80,229
High: $366,569/Low: $31,893
No. that Met or Surpassed Avg.: 3
Median: $67,667
$81,940
High: $259,406/Low: $18,503
No. that Met or Surpassed Avg.: 11
Median: $72,645
Memberships $100,064
High: $29,701/Low: $37,750
No. that Met or Surpassed Avg.: 6
Median: $89,550
$157,534
High: $254,368/Low: $65,274
No. that Met or Surpassed Avg.: 5
Median: $137,028
$202,201
High: $364,903/Low: $50,523
No. that Met or Surpassed Avg.: 10
Median: $190,278
Credit Sales $42,816
High: $103,110/Low: $10,865
No. that Met or Surpassed Avg.: 8
Median: $39,600
$67,273
High: $165,799/Low: $28,810
No. that Met or Surpassed Avg.: 6
Median: $50,416
$73,200
High: $169,387/Low: $25,768
No. that Met or Surpassed Avg.: 11
Median: $70,594
Other $24,002
High: $109,129/Low: $5,500
No. that Met or Surpassed Avg.: 6
Median: $13,560
$32,259
High: $211,853/Low: $9,649
No. that Met or Surpassed Avg.: 2
Median: $13,543
$74,358
High: $588,818/Low: $6,518
No. that Met or Surpassed Avg.: 4
Median: $18,762

What Is the Payback Period for D-BAT Franchisees?

When opening a franchise, the first question investors ask is usually linked to the profit they’re going to earn. Using financials from D-BAT’s FDD, we can estimate the time it will take to recoup your $730,000 initial investment if you decide to purchase the D-BAT franchise. Below is a table showing the payback period with a 10%, 15%, and 20% profit margin.

Payback Period

Initial investment (midpoint) %Profit margin of median franchise sales for 15,000 – 19,500 sq. ft. Estimated Profits Time to recoup investments
$730,000 10% $51,000 14.3 years
15% $76,000 9.5 years
20% $102,000 7.1 years

Initial investment (midpoint) %Profit margin of median franchise sales for 15,000 – 19,500 sq. ft. Estimated Profits Time to recoup investments
$730,000 10% $71,000 10.3 years
15% $106,000 6.8 years
20% $142,000 5.2 years

With a 5-14 year payback period for a D-BAT franchise, you probably should have other reasons beyond making money for investing in one. Perhaps you love baseball and helping kids?

Be sure to check out 2,000+ franchises on Vetted Biz to see which one might be the best fit for you!

 

Speak to a franchise specialist today.

Discover which franchise is best for you.

Speak to a franchise specialist today

Visit Franchise Profiles mentioned

See more profiles

Access to unbiased franchise data.

Easy to access franchise data for everyone from first time franchise buyers to institutional investors buying whole franchise systems to everyone in between.

Submit
Feedback