In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a D1 Training franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a D1 Training franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned D1 Training outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the D1 Training franchise opportunity

Section V – Presentation and analysis of D1 Training’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 gross revenue, royalty, marketing expenses, labor costs, and revenue less disclosed expenses for the only D1 Training corporate outlet in which there was a General Manager in place the entire year and that used an approved lead gen provider

• 2023 average, median, high, and low gross revenue, royalty, marketing expenses, labor costs, and revenue less disclosed expenses for the 16 substantially similar D1 Training franchised locations that were open for over 2 years as of December 31, 2023 and for which D1 Training has full financial data

• 2023 average, median, high, and low gross revenue, royalty, marketing expenses, labor costs, and revenue less disclosed expenses for the 10 substantially similar D1 Training franchised locations that were open for 1-2 years as of December 31, 2023 and for which D1 Training has full financial data

• same-store sales growth for each month in 2023 as compared to the corresponding month in 2022 for D1 Training’s franchised businesses open for all of 2023 and 2022

• 2023 average, median, high, and low annual gross rent and annual triple net rent for the 26 franchised D1 Training businesses that executed leases in 2023

Section VI – Key ratios, comparables, computations, and analyses for the D1 Training franchise opportunity (exclusive content for Platinum subscribers)

Section I – D1 Training Franchise Costs

• Initial Franchise Fee:  $59,500
• Opening Support Fee:  $29,500
• Initial Marketing Spend:  $10,000 to $20,000
• Leasehold Improvements:  $0 to $382,609
• Real Estate Services:  $5,000
• Furniture and Fixtures:  $4,000 to $8,000
• Equipment:  $0 to $75,000
• Cardio Equipment:  $0 to $16,341
• Opening Inventory and Supplies:  $2,500
• Computer Equipment and Software:  $5,000 to $6,000
• Training Expenses:  $250 to $1,600
• Three Months’ Rent:  $0 to $32,073
• Professional Fees, Permits, and Licenses:  $4,000 to $6,000
• Insurance Premium:  $7,000 to $12,000
• Additional Funds (3 months):  $35,000 to $55,000
• Total Estimated D1 Training Franchise Costs:  $161,750 to $711,123

Section II – D1 Training’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Royalty:  the greater of (i) 7% of Gross Sales, or (ii) the Minimum Royalty Fee. The Minimum Royalty Fee starts 12 months after you sign your Franchise Agreement and is equal to (i) $1,950 per month during the first year, (ii) $2,450 per month during the second year, and (iii) $2,950 per month during the third year and each additional year under the initial term of the Franchise Agreement.

• Brand Fund:  $250 per month

• Local Marketing Requirement:  D1 Training’s then-current requirement; currently, $100 per day

• Local Advertising Cooperative:  not to exceed 1.5% of Gross Sales without approval of the local advertising cooperative

Section III – Number of Franchised and Company-Owned D1 Training Outlets

Franchised

2021

• Outlets at the Start of the Year:  53
• Outlets at the End of the Year:  63
• Net Change:  +10

2022

• Outlets at the Start of the Year:  63
• Outlets at the End of the Year:  79
• Net Change:  +16

2023

• Outlets at the Start of the Year:  79
• Outlets at the End of the Year:  90
• Net Change:  +11

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  1
• Net Change:  +1

Section IV – News Updates on the D1 Training Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the D1 Training Franchise (Item 19, 2024 FDD)

• This Item sets forth certain historical data, from January 1, 2023, through December 31, 2023 (the “Measurement Period”), for Businesses open and operating for the full Measurement Period. This Item sets forth the gross revenues of each Business as well as certain expenses incurred by the Businesses for the respective Measurement Periods.

• D1 Training had two corporate facilities open and operating during the full Measurement Period. D1 Cool Springs, which is owned by D1 Training’s affiliate, Corporate, and D1 Garland, which is owned by a franchisee, 45 Sports Training, LLC. 45 Sports Training, LLC is owned by two of D1 Training’s officers.

Part 1 – Gross Revenues, Royalty, Marketing Expenditures, and Labor for Corporate Store

• Part 1 below presents the: (i) Gross Revenues; (ii) Royalty; (iii) Marketing Expenditures; and (iv) Labor for D1 Cool Springs over the Measurement Period, the only corporate outlet in which there was a General Manager in place the entire year and that used an approved lead gen provider, two of D1 Training’s criteria areas as defined more fully below.

• 2023 Gross Revenue:  $2,034,452
• Royalty (7%):  $100,401
• Marketing:  $84,217
• Labor:  $520,476
• Revenue Less Disclosed Expenses:  $1,329,358

Part 2 – Gross Revenues, Royalty, Marketing Expenditures, and Labor for Corporate Store

• Part 2 below presents the: (i) Gross Revenues; (ii) Royalty; (iii) Marketing Expenditures; and (iv) Labor for 16 substantially similar franchised locations that were open and operating for over 2 years as of December 31, 2023, and 10 substantially similar franchised locations that were open and operating for 1-2 years as of December 31, 2023, and for which D1 Training has full financial data.

• Part 2 below excludes the results of 23 franchised Businesses that had at least two deficiencies out of four possible criteria areas: insufficient marketing expenditure data; Business not using an approved lead gen provider; no General Manager, General Manager for a partial year, or hired a General Manager outside of approval process within the system; and incomplete quarterly scorecard data, and thus are not substantially similar to franchises offered in this FDD.

A. Franchised Businesses That Were Open > 2 Years (as of 12/31/2023) (16 Franchised Locations)

High Business

• 2023 Gross Revenue:  $1,533,786
• Royalty (7%):  $73,293
• Marketing:  $77,182
• Labor:  $727,237
• Revenue Less Disclosed Expenses:  $656,074
• High business facility is under an older franchise agreement with a different royalty structure.

Average Business

• 2023 Gross Revenue:  $808,219
• Royalty (7%):  $39,779
• Marketing:  $47,213
• Labor:  $415,190
• Revenue Less Disclosed Expenses:  $306,038

Median Business

• 2023 Gross Revenue:  $751,710
• Royalty (7%):  $38,641
• Marketing:  $47,634
• Labor:  $368,109
• Revenue Less Disclosed Expenses:  $297,326

Low Business

• 2023 Gross Revenue:  $305,731
• Royalty (7%):  $17,481
• Marketing:  $32,348
• Labor:  $223,413
• Revenue Less Disclosed Expenses:  $32,489

B. Franchised Businesses That Were Open 1-2 Years (as of 12/31/2023) (10 Franchised Locations)

High Business

• 2023 Gross Revenue:  $1,350,914
• Royalty (7%):  $88,105
• Marketing:  $103,487
• Labor:  $603,499
• Revenue Less Disclosed Expenses:  $555,823

Average Business

• 2023 Gross Revenue:  $569,401
• Royalty (7%):  $37,676
• Marketing:  $52,745
• Labor:  $296,092
• Revenue Less Disclosed Expenses:  $183,889

Median Business

• 2023 Gross Revenue:  $519,817
• Royalty (7%):  $34,014
• Marketing:  $48,086
• Labor:  $246,484
• Revenue Less Disclosed Expenses:  $191,233

Low Business

• 2023 Gross Revenue:  $269,488
• Royalty (7%):  $17,977
• Marketing:  $40,373
• Labor:  $227,708
• Revenue Less Disclosed Expenses:  $(16,571)

Part 3 – System Growth (Year Over Year, Same Store)

• Part 3 below sets forth same store sales growth for each month in 2023 as compared to the corresponding month in 2022 for D1 Training’s franchised Businesses open for all of 2022 and 2023.

• January 2023:  12.02%
• February 2023:  7.78%
• March 2023:  6.37%
• April 2023:  1.70%
• May 2023:  8.73%
• June 2023:  8.31%
• July 2023:  12.01%
• August 2023:  3.79%
• September 2023:  4.26%
• October 2023:  7.86%
• November 2023:  7.65%
• December 2023:  -1.31%
• 2023 Total:  6.50%

Part 4 – Base Rent Costs (2023 Leases Executed)

• Part 4 below sets forth the base rent costs for 26 of D1 Training’s franchised Businesses that executed leases in 2023.

High

• Gross Rent (Annual):  $171,097.86
• Triple Net Rent (Annual):  $131,580.00

Average

• Gross Rent (Annual):  $127,678.35
• Triple Net Rent (Annual):  $96,608.86

Median

• Gross Rent (Annual):  $126,965.00
• Triple Net Rent (Annual):  $98,263.91

Low

• Gross Rent (Annual):  $79,034.67
• Triple Net Rent (Annual):  $61,776.00

• For Part 4 regarding Base Rent Costs, 14/26 (53.8%) franchised Businesses had higher NNN than the average presented and 13/26 (50%) had higher Gross Rent than the average presented.

• Gross Revenues means the total revenue derived from the operation of the Business and is inclusive of sales tax. Gross sales for royalty purposes excludes sales tax. 9/26 (34.6%) franchised Businesses achieved Gross Revenues higher than the average presented.

• Royalty means the royalty paid to D1 Training per the terms of the franchise agreement. The royalty rate in D1 Training’s current franchise agreement is 7%. Some facilities are operating on earlier versions of the Franchise Agreement that may have a different royalty structure. 10/26 (38.5%) Franchised Businesses paid more in Royalty than the average presented.

• Marketing Expenditures means the monies paid by the Business to the Brand Fund per the terms of the Franchise Agreement as well as monies spent locally advertising the Business. 13/26 (50%) franchised Businesses expended more in Marketing Expenditures than the average presented.

• Labor means the total payroll expenses as reported to D1 Training by each franchisee. 9/26 (34.6%) franchised Businesses expended more in Labor than the average presented.

• Revenue Less Disclosed Expenses means Gross Revenues less Royalty, Marketing Expenditures, and Labor. 10/26 (38.5%) Franchised Businesses achieved Revenue Less Disclosed Expenses higher than the average presented.

• The median figure is the figure in which one half of the Businesses presented in each part had achieved a higher result for that metric and one half of the Businesses achieved a lower result for that metric.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance you’ll do as well.

Section VI – D1 Training Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️