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.
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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.
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.
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 |
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!
