In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the D1 Training franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a D1 Training franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a D1 Training franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned D1 Training outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of D1 Training’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average, median, high, and low gross revenues, royalty, marketing expenditures, labor, and revenue less disclosed expenses for the 13 D1 Training franchised businesses open and operating for the full Measurement Period (January 1, 2019 to December 31, 2019) and for which D1 Training has full financial data
Section I – Background Information
19 Things You Need to Know About the D1 Training Franchise
Accelerates Launch of D1toU App to Unite Members Outside the Facility
1. In April 2020, D1 Training rolled out its own virtual coaching program, D1toU. It brings the experience of its expert coaching and 5-star training and accountability to its members during this unprecedented time and beyond. In fact, the fitness brand has been working on this program since the prior fall, leading to the unique and timely ability to launch this new remote platform for its members.
2. D1toU provides a fitness accountability partner that inspires and equips participants to live at their highest level, despite their location. Members receive coaching accountability three times a week via a Zoom call, text, or a phone call to go over the workouts in-depth while evaluating goals.
3. D1toU also includes nutrition accountability that ensures members are maintaining a healthy lifestyle to accompany the fitness aspect of training. This is executed through nutrition templates and guides provided by the coaches.
4. In partnership with TrainHeroic, the third leg of the initiative includes an app that currently services over 24,360 members. It provides all of the brand’s programming, including a chat feature to keep the D1 Training community connected through daily challenges and support via virtual fist and fist-bumps.
5. Will Bartholomew, founder and CEO of D1 Training, said, “D1 Training is so much more than turf, weights and loud music. We are a community of people with character and values with goals to improve inside and out. We always saw D1toU as a platform to keep our athletes engaged no matter where they are or what they’re doing. We’re thrilled we are able to keep that promise to our D1 family, especially now as we attack this ‘off-season’ head-on.”
6. Through this program, members are able to have remote access to D1 Training’s full-body workouts while having the ability to log all training, track progress, and stay connected with an expert coach. The TrainHeroic App is available for download on Google Play or the App Store.
Reveals Significant Franchise Development Plans
7. In mid-July 2020, D1 Training announced a strategic focus on franchise development as the brand continues to innovate and adapt to prevail in the post-pandemic era. Coming off of a successful 2019, where the brand signed 66 franchise agreements, increased year-over-year sales by 20 percent, and trained over 100,000 scholastic athletes, 2020 is on the path of upward success despite COVID-19 as the franchise plans to open 13 new facilities by year-end with an additional 100+ in various stages of development.
8. Notably, D1 Training had awarded three multi-unit agreements around the time of the announcement, as it continues to expand across the nation. Franchisee Randy Colley will bring four locations to Colorado debuting in Cherry Hills, Littleton, Lone Tree, and Aurora, while franchisee Jason Carmichael is set to debut two locations in the North Denver area.
9. Additionally, D1 is strengthening its presence in Florida, adding to its roster of NFL-player franchise partners as Tre Boston, Jaylen Watkins, and Sammy Watkins are set to bring two locations to Fort Myers and Cape Coral. The growing franchise is seeking qualified, community-minded franchisees with a passion for the fitness industry to continue its growth through single and multi-unit franchise agreements.
10. Dan Murphy, chief operating officer of D1 Training, said, “Our incredible network of franchise partners, coaches, and corporate franchise team have served as a guiding light for our brand as we navigated through the ever-changing landscape of the pandemic and the impact it has had on the fitness industry. Our strength, resiliency, and ability to innovate and adapt has allowed us to remain steadfast and focused on our growth. There was no ‘off-season’ – rather, it was an opportunity to reevaluate and improve our development strategy. We’re committed to emerging stronger than ever before as we push forward with new openings and signed agreements in this post-COVID era.”
11. D1 Training’s internal theme for the year, “Believe,” remains at the forefront, which is fitting to the challenges that the pandemic has placed on the fitness industry as a whole. The brand prides itself on its forward-thinking innovation to meet the needs of the consumer and support its franchisees with business operations. Amid the pandemic, it accelerated the launch of its D1toU online, virtual training app and remote program, in partnership with TrainHeroic, which now services over 24,360 members.
12. As its facilities begin to safely reopen across the nation, its newly-secured vendor partnerships with Sorinex Equipment, Plae, and Zybek are providing the brand with a unique competitive advantage.
Announces Two Multi-Unit Agreements Bringing Six New Facilities to Colorado
13. In mid-October 2020, D1 Training announced two new multi-unit agreements that will bring six facilities to Colorado in 2021. The state proves to be a prime area for expansion as D1 builds on the incredible success of its debut facility in Colorado Springs. The new agreements contribute to the brand’s overall explosive nationwide growth – now with 165-plus awarded territories in just three short years since transitioning to a franchise model.
14. The first multi-unit agreement is a four-unit deal in which franchisee Randy Colley will debut locations in Cherry Hills, Littleton, Lone Tree, and Aurora. Colley is currently in site selection for the first facility which is slated to open in Cherry Hills by fall 2021. Behind the second multi-unit agreement is franchisee Jason Carmichael who is set to open two locations in the North Denver area, also by fall 2021. D1 Training continues to seek qualified franchise partners in additional target development cities throughout the state including Boulder, Castle Rock, Fort Collins, Parker, and Wheat Ridge.
15. According to Dan Murphy, chief operating officer of D1 Training, “Our team is well poised to continue expanding throughout Colorado with strategic franchise partnerships. The scholastic sports culture, demand for high-quality adult fitness training, and an open real estate market is fueling our development. While the pandemic created an ‘off-season’ for many brands, we took it as an opportunity to reevaluate and improve our development strategy. We continue to push forward with new openings and signed agreements and are grateful to have found amazing partners in Randy and Jason – they will no doubt aid in our goal of making D1 Training a household name across the state.”
16. D1 Training was founded in 2001 by Will Bartholomew in his hometown of Nashville, Tennessee. Everyone believed that Bartholomew, who has always played sports, had a future with the NFL. As an undrafted free agent, Bartholomew started practicing with the Denver Broncos, but just before the season began, he suffered a career-ending injury.
17. While he returned home to rest, Bartholomew missed the training of a Division 1 school and he noticed that many people were interested in his story of how he had made it to Denver. He realized that this was his new calling, to offer others the type of training he experienced. This was the birth of D1 Training.
18. Over the next decade and a half, Bartholomew grew D1 Training to 32 locations across the Southeastern United States. In 2016, Bartholomew started franchising the D1 Training concept and the company has now converted all of its company-owned locations into franchises.
Entrepreneur’s Franchise 500
19. D1 Training ranked No. 481 on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of D1 Training franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on D1 Training’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 20
- Net Change: +12
- Outlets at the Start of the Year: 20
- Outlets at the End of the Year: 22
- Net Change: +2
- Outlets at the Start of the Year: 22
- Outlets at the End of the Year: 30
- Net Change: +8
- Outlets at the Start of the Year: 24
- Outlets at the End of the Year: 7
- Net Change: -17
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 1
- Net Change: -6
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 0
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- This Item sets forth certain historical data from January 1, 2019 through December 31, 2019 (the “Measurement Period”) for Businesses open and operating for the full Measurement Period and that are still currently operating as of the issue date of the Disclosure Document. This Item sets forth the gross revenues of each Business as well as certain expenses incurred by the Businesses for the respective Measurement Periods.
- The tables below present the: (i) Gross Revenues; (ii) Royalty; (iii) Marketing Expenditures; and (iv) Labor for 13 substantially-similar franchised locations that were open and operating for the entire Measurement Period and for which D1 Training has full financial data.
- The tables below present the high, low, average, and median results for each of these metrics during the Measurement Period for the 13 franchised locations.
- There were 22 franchised Businesses open and operating during the full Measurement Period, and the table below excludes the results of two Businesses that were not consistently open and operating for the duration of the Measurement Period, two Businesses that are no longer operating, and five Businesses that do not offer the full line of services consistent with D1 Training’s current offering, and thus are not substantially similar to franchises offered in the Disclosure Document.