D-BAT Franchise Startup Cost, Revenue and Profit Margin

If you want to be part of a thriving sports franchise, D-BAT Academies Inc. is one to consider. This franchise has been ranked among Entrepreneur Magazine’s top 500 franchises. This speaks volumes about its viability.

As such, you only need to read on to find out more information about this great investment opportunity. If you’ve previously come across information about the D-BAT franchise and seek to know the requirements for joining, then tag along.

D-BAT Academies Inc. was founded in 1998. However, it only began to franchise 9 years later in 2007. This franchise is headquartered in Carrollton, Texas.

Since then, the company has expanded nationwide as well as internationally. You can become a part of its success story by owning or investing in a global brand.

Type of Sport Equipment

D-BAT is in the business of manufacturing and selling of baseball equipment. These include baseballs, uniforms, wooden bats, gloves, and an assorted array of apparel. Other products include battling gloves and a full range of accessories.

The D-BAT Advantage

Are you seeking for reasons to invest in D-BAT? If you do, there are several! This franchise opportunity has you covered in the aspects of effective hands-on support and a deep understanding of the business and sports angle of things. These are the basic requirements for any franchisee to succeed. It’s little wonder then why D-BAT has attracted and continues to attract investors.

As its franchisee, you get to benefit from the franchisor’s higher gross margins. This is brought about by its lower sports gear production costs. D-BAT’s lower pricing advantage extends to its partner retailers. So, as its franchisee, you get products at a much-reduced cost due to D-BAT’s economy of scale.

What more? You won’t only earn from sales of its branded sporting gear. You get to work and do business with softball and baseball academies. Through this, additional income streams are created.

Financial Requirements

Joining the D-BAT family comes with certain requirements. These are essential and must be met by all prospective franchisees. Its financial commitments include the liquid cash requirement, net-worth requirements as well as an initial investment sum.

There are also ongoing fees that are made up of the ad royalty, initial franchise, and ongoing royalty fees. The following are details of these requirements.

  • Liquid Cash Requirement

Prospective franchisees seeking to own a part of the D-BAT franchise must meet its liquid cash requirements. This is the minimum liquid capital you must have to be considered. Its liquid cash requirement ranges from $75,000 to $200,000.

  • Net-Worth Requirement

The value of your total assets is very crucial in determining your suitability as a potential franchisee. However, your assets are measured with the exclusion of your liabilities.

As such, assets will include real estate, cash, retirement accounts as well as stocks. D-BAT requires that you have a net worth ranging from $300,000 to $5,000,000.

  • Initial Investment

What is the initial investment exactly? This is the total amount the franchisor requires for buying into its business. It covers supplies, real estate, working capital and operational licenses among others. D-BAT franchise requires an initial investment within the $398,025 to $699,975 bracket.

Ongoing Fees

Under the financial requirements are ongoing fees. These types of fees may be recurring as determined by the franchisor. D-BAT’s ongoing fees consist of the ad royalty, initial franchise and royalty fees. These are requirements all prospective franchisees must agree to before signing the franchise document.

  • Ad Royalty Fee

D-BAT franchise requires that interested investors pay an ad royalty fee consisting of 2.5% of the franchise fee. A full explanation of this is given in its Franchise Disclosure Document FDD.

  • The Initial Franchise Fee

The initial franchise fee is set at a minimum of $40,000. This can increase considerably depending on the type of franchise agreement you enter into. In other words, franchisees may be given the opportunity to own multiple franchise units.

Also, there may be bigger or smaller units. All of these will impact on the cost of its initial franchise fee.

  • The Ongoing Royalty Fee

All prospective franchisees must agree to its membership fees. Now, 40% of your membership fees will constitute your ongoing royalty fee. This shouldn’t be confusing as a full breakdown of all costs implications is provided in its FDD.

Any Financing Options?

Yes, there are. D-BAT seeks to provide as much help to prospective franchisees. This has led it entering into a financing relationship with third party sources. The goal is to provide financing covering certain areas of its operations.
D-BAT Academies Inc. offers to finance covering a number of critical areas like equipment, payroll, and accounts receivable. Others include the franchise fee, inventory and startup costs.

Training

All franchisees are required to undergo a training program. Training is divided into two. Onsite and another held at its headquarters. Onsite training lasts a period of 20 hours. This may be split into multiple sessions for purposes aimed at better assimilation. A 16-hour training follows at its headquarters. This may also be split into sessions.

You may request additional training if there is a need to. However, this will be subject to approval by the franchisor. On the other hand, training may be called by the franchisor. This may be due to several reasons geared towards increasing capacity.

Support

D-BAT franchisees are given the necessary support they need to succeed. Such support comes in different forms. Ongoing support includes a toll-free line, a grand opening ceremony, field operational support, as well as newsletters.

You also get its proprietary software for the smooth functioning of your operations. This proprietary software helps with inventory management, point of sale transactions and member management. Other functions include mobile phone apps, customer email marketing, automated lesson confirmation and sales reports among others.

The D-BAT franchise opportunity is a great option for anyone seeking a thriving sports franchise to invest in. You can begin the process once you meet the above criteria.