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D-BAT Franchise ProfileSports Franchises > Sports Coaching |
What is the Initial Investment for a D-BAT Franchise?
To open a D-BAT franchise, the initial investment ranges from $536,450 to $1,031,100. This includes a franchise fee of $45,000. Potential franchisees should also prepare for ongoing costs, such as an 8% royalty fee on gross sales and a marketing fee of 2.5%. Additionally, having liquid capital of $106,500 to $124,000 and a net worth between $500,000 and $1,000,000 is required to ensure financial stability for the venture.
What are the Financial Performance Metrics for D-BAT Units?
D-BAT franchises have shown promising financial performance, with an average annual revenue of $192,260 per unit. The median annual revenue is slightly lower at $172,378, while the revenue range demonstrates significant variability, with the lowest unit generating $16,399 and the highest reaching $826,728. Franchisees can expect to breakeven within approximately 12 months and see a return on their investment within 21 months, making it an attractive option for many investors.
What are the Operating Expenses for a D-BAT Franchise?
The average operating expenses for a D-BAT franchise total around $6,641,104 annually. Key components of these expenses include personnel costs, which account for approximately 60.39% of revenue, and advertising and marketing expenses totaling $118,317. Other expenses include rent, professional fees, and general administrative costs. Understanding these financial metrics is essential for franchisees to effectively manage their budget and optimize profitability.
How Has the D-BAT Franchise Grown Over Recent Years?
D-BAT has experienced steady growth in its franchise units, increasing from 100 units in 2020 to 128 units by 2022. This growth trend reflects a strong demand for its services and brand recognition in the market. As of now, all units are franchised, with no corporate-owned locations, indicating a focused strategy on expanding franchise partnerships. This growth trajectory can be appealing for potential franchisees looking to invest in a brand with a proven track record.
D-BAT Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
D-BAT Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 100 | 113 | 128 |
| Net Change YoY | 13 | 15 | |
| Franchised Units | 100 | 113 | 128 |
| Net Change YoY | 13 | 15 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The D-BAT franchise requires an initial investment ranging from $536,450 to $1,031,100. This investment covers various costs including the franchise fee, equipment, and other startup expenses. A cash requirement of $106,500 to $124,000 is also needed to ensure that franchisees have sufficient working capital to launch their operations effectively.
Franchise Fees
Franchisees are required to pay an initial franchise fee of $45,000. In addition to this, there is an ongoing royalty fee of 8% of gross sales and a marketing fee of 2.5%. These fees contribute to the overall support and marketing efforts provided by the D-BAT corporate team, ensuring brand consistency and growth.
Revenue Potential
D-BAT franchises have demonstrated strong revenue potential, with average annual revenue per unit at $192,260. The median annual revenue stands at $172,378, while the highest revenue recorded is $826,728. This indicates a lucrative opportunity for franchisees who effectively manage their operations and marketing strategies.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of opening. The investment payback period is estimated at 21 months, allowing franchisees to recoup their initial investment relatively quickly, provided they maintain operational efficiency and effective customer engagement.
Franchise Growth
D-BAT has shown consistent growth in franchised units, increasing from 100 units in 2020 to 128 units by 2022. This upward trend reflects the brand's expanding market presence and the increasing demand for its unique offerings, making it an attractive option for prospective franchisees.
Operational Insights
The average operating expenses for a D-BAT franchise total approximately $6,641,104 annually, with personnel costs being the largest expense at around $3,560,308. Understanding these financial metrics is crucial for franchisees to optimize profitability and manage their operational budgets effectively.
Frequently Asked Questions
The initial investment for a D-BAT franchise ranges from $536,450 to $1,031,100, which includes the franchise fee and other startup costs.