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D1 Franchise ProfileSports Franchises > Sports Coaching |
Investment Overview for the Franchise
The franchise requires a low initial investment of $127,450 and a high of $634,868, making it accessible for a range of investors. The initial franchise fee is set at $59,500. Additionally, franchisees must prepare for ongoing costs, including a royalty fee of 7% of gross sales and a marketing fee of 2%. To qualify, potential franchisees need a net worth between $500,000 and $1,000,000, along with sufficient cash reserves to cover the investment range.
Revenue Potential and Financial Performance
Each franchise unit averages annual revenues of $689,918, with a median revenue of $564,071. The revenue range is significant, with the lowest unit earning $335,463 and the highest reaching $1,516,105. This financial performance indicates strong market potential, allowing franchisees to achieve a breakeven point in just 12 months and a payback on their investment in approximately 11 months.
Growth and Expansion Trends
The franchise has shown impressive growth, expanding from 22 franchised units in 2019 to 53 by 2021. This growth reflects a robust demand for the brand and a solid franchise model. Notably, the franchise had no corporate-owned units since 2020, focusing entirely on franchising, which may appeal to investors looking for a pure franchise model without corporate competition.
Operational Insights and Expenses
Franchisees should anticipate total operating expenses averaging around $305,044 annually, which includes selling, general, and administrative costs. The marketing fund expense is an additional $3,125 per year. With a gross profit margin of 44.7%, franchisees can expect a healthy return on their investment, provided they manage their expenses effectively and maintain strong revenue performance.
D1 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:
D1 Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 23 | 30 | 53 |
| Net Change YoY | 7 | 23 | |
| Franchised Units | 22 | 30 | 53 |
| Net Change YoY | 8 | 23 | |
| Corporate Units | 1 | 0 | 0 |
| Net Change YoY | -1 | 0 |
Investment Overview
The initial investment for a D1 franchise ranges from $127,450 to $634,868, with a franchise fee of $59,500. Potential franchisees should also prepare for ongoing costs, including a 7% royalty fee on gross sales and a 2% marketing fee. A cash requirement of $127,450 to $634,868 and a net worth of $500,000 to $1,000,000 are necessary to ensure financial stability and support for the franchise operation.
Revenue Potential
D1 franchise units demonstrate strong revenue potential, with average annual revenue per unit reported at $689,918. The median annual revenue stands at $564,071, while the lowest and highest annual revenues are $335,463 and $1,516,105, respectively. This variability indicates the potential for significant earnings, depending on location and operational efficiency.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation, which is a favorable timeframe in the franchise industry. Additionally, the investment payback period is estimated at just 11 months, highlighting the D1 franchise's ability to generate returns relatively quickly, making it an attractive option for investors.
Growth Trajectory
The D1 franchise chain has shown impressive growth, increasing from 22 franchised units in 2019 to 53 by 2021. This upward trend reflects the brand's expanding market presence and the increasing interest from potential franchisees, indicating a robust demand for its offerings and a strong franchise model.
Operating Expenses
Average annual operating expenses for a D1 franchise unit are approximately $305,044, which includes selling, general and administrative costs. The marketing fund expense adds another $3,125 annually. Understanding these expenses is crucial for franchisees to effectively manage their budgets and optimize profitability.
Corporate Structure
The D1 franchise operates under a corporate structure that focuses on franchisee support and brand development. While there were some corporate-owned units initially, the focus has shifted towards franchising, allowing for a broader reach and leveraging local ownership to enhance customer engagement and service delivery.
Frequently Asked Questions
The initial investment for a D1 franchise ranges from $127,450 to $634,868, which includes the franchise fee and other startup costs.