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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of D1 Training’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, high, and low gross revenue, royalty, marketing, labor, and revenue less disclosed expenses for 14 substantially similar D1 Training franchised locations that were open and operating for over 2 years as of December 31, 2020 and 5 substantially similar D1 Training franchised locations that were open and operating for 1-2 years as of December 31, 2020 and for which D1 Training has full financial data

• NNN annual lease costs for 13 of D1 Training’s franchised Businesses that executed leases in 2020

Section I – Background Information

16 Things You Need to Know About the D1 Training Franchise

Accelerates Expansion Across Florida

1.  In mid-February 2021, D1 Training announced five new agreements that would bring eight facilities to Florida in 2021. The state proves to be a prime area for expansion as D1 builds on the incredible success of its four existing training facilities, including the recently opened location in Deerfield Beach. 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.

2.  The first agreement is a multi-unit deal in which franchisee Conor Blount will launch two locations – one in St. Johns and another in East Jacksonville. Spearheading the second multi-unit agreement are franchisees Jaylen Watkins, Sammy Watkins, and Tre Boston who are set to open two locations with one planned for Fort Myers and the other for Cape Coral. Franchisees Patrick and Amina Anderson signed a single-unit agreement and will be leading the development for East Colonial’s first ever D1 Training location.

3.  Kenny and Patricia Farrell have signed for two units in Jupiter and Wellington. And rounding out the development news is a new franchisee who is looking to open in Tallahassee. D1 Training continues to seek qualified franchise partners in additional target development cities throughout the state including Gainesville, Hialeah, Miami, Port Charlotte, Port St. Lucie, Saint Petersburg, and Tampa.

4.  Dan Murphy, chief operating officer of D1 Training, said, “With many of our franchises located in regions around our flagship facility in Nashville, it leaves plenty of room and opportunity for national expansion – and, that’s exactly what we’re doing. The pandemic caught everyone off guard, so we took it as an opportunity to reevaluate and improve our development strategy. There’s an unwavering demand for both high-quality adult fitness training and student athletes looking for resources to up their game. All of this, coupled with an open real estate market, is taking our development to the next level.”

5.  Murphy added, “Despite 2020’s challenges, we’re pushing forward with growth and continuing to help people achieve their dream of owning their own business. In Q4 2020, Medon and Paula Michaelides launched Florida’s newest location in Deerfield Beach, and they will no doubt help us make D1 Training a household name across the entire state.”

6.  D1’s ability to innovate and adapt throughout the pandemic has allowed the brand to remain steadfast and focused on growth. By accelerating the launch of its D1toU online, virtual training app and remote program in partnership with TrainHeroic, franchisees felt supported in their ability to continue servicing their communities. As facilities began to safely reopen across the nation, its newly-secured vendor partnerships with Sorinex Equipment, Plae, and Zybek are providing D1 with a unique competitive advantage. Despite the challenges of the pandemic, the brand is up 81 percent in systemwide revenue, year-over-year.

Receives Strategic Investment from Princeton Equity Group

7.  In mid-November 2021, D1 Training announced that it had received a strategic investment from Princeton Equity Group, a leading franchise and multi-unit private equity firm. Princeton is partnering with D1 Training to accelerate the brand’s nationwide expansion and secure its leadership position in the fitness industry.

8.  At the time of the announcement, D1 Training had 61 locations open with more than 125 locations in development. The brand’s 5-Star Training Program is derived from Division 1 strength & conditioning programs, maximizing results for athletes ages seven and up. D1’s programs can be tailored to any goal, from maximizing performance for professional athletes to beginners seeking a healthy lifestyle. D1 has trained over 100 NFL Draft picks, 3,000 collegiate athletes, and 100,000 scholastic athletes per year.

9.  Will Bartholomew, founder and CEO of D1 Training, said, “The investment from Princeton is a testament to D1’s distinct brand reputation, our proven success, and strong growth potential in the fitness industry. The investment comes at a great inflection point for our business. We’ve seen significant growth since we started franchising in 2017 and are now looking to the next chapter. With this partnership, we are positioned for major expansion in both existing and new markets, while we make strategic investments to bolster our brand and support our high-powered franchisees.”

10.  Princeton’s partnership with D1 Training brings additional resources to support its fast-growing franchise network. D1’s fitness expertise combined with Princeton’s franchising knowledge will foster D1 into a national brand synonymous with high-caliber athletic performance and fitness.

11.  Dan Murphy, chief operating officer of D1 Training, added, “We’re eager to build on the momentum of this partnership. Our strong culture and winning business model, paired with the backing of Princeton, provide huge opportunities for growth. We have a platform positioned for accelerated development and we look forward to welcoming new franchise partners to join our D1 Family.”

12.  Jim Waskovich, co-founder and managing partner of Princeton, said, “We are incredibly excited to partner with Will, Dan and the rest of this talented team. D1 has built an incredible brand and has an unparalleled track record of success training athletes of all ages. We look forward to supporting D1’s next stage of growth.”

Company History

13.  D1 Training was founded in 2001 by Will Bartholomew in Nashville, Tennessee. Bartholomew grew up playing sports and for several years, it looked like he was headed for a career in the NFL. As an undrafted free agent, Bartholomew began practicing with the Denver Broncos. However, before the 2001 season began, Bartholomew suffered a career-ending injury.

14.  Bartholomew moved back home to Nashville to recover and began missing the training of a Division 1 school. He began to come up with a plan to offer Division 1 training to others and Bartholomew rented out a small space. Bartholomew set up a weight room and made the space look like a Division 1 school’s training area.

15.  Over the next decade, Bartholomew built up D1 Training and opened 32 locations around the Southeastern United States. In 2016, Bartholomew decided to start franchising the D1 Training concept around the country. All of the company-owned locations were converted to franchises and D1 Training has expanded to other states.

Entrepreneur’s Franchise 500

16.  D1 Training did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of D1 Training franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  22
• Net Change:  +2

2019

• Outlets at the Start of the Year:  22
• Outlets at the End of the Year:  30
• Net Change:  +8

2020

• Outlets at the Start of the Year:  30
• Outlets at the End of the Year:  53
• Net Change:  +23

Company-Owned

2018

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  1
• Net Change:  -6

2019

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

2020

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

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• This Item sets forth certain historical data from January 1, 2020 through December 31, 2020 (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.

• There were 27 franchised Businesses open and operating during the full Measurement Period, and the table below excludes the results of three Businesses that did not provide complete financial reporting from the Measurement Period, and five Businesses that did 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.

Part 1 – Gross Revenues, Royalty, Marketing Expenditures, and Labor for Franchised Businesses

• Part 1 below presents the: (i) Gross Revenues; (ii) Royalty; (iii) Marketing Expenditures; and (iv) Labor for 14 substantially similar franchised locations that were open and operating for over 2 years as of December 31, 2020 and 5 substantially similar franchised locations that were open and operating for 1-2 years as of December 31, 2020 and for which D1 Training has full financial data.

A. Franchised Businesses That Were Open > 2 Years (as of 12/31/2020)

High Business

• 2020 Gross Revenue:  $1,374,705
• Royalty (6%):  $82,482
• Marketing:  $52,591
• Labor:  $373,518
• Revenue Less Disclosed Expenses:  $866,114

Average Business

• 2020 Gross Revenue:  $629,179
• Royalty (6%):  $37,751
• Marketing:  $34,547
• Labor:  $261,395
• Revenue Less Disclosed Expenses:  $295,487

Median Business

• 2020 Gross Revenue:  $514,559
• Royalty (6%):  $30,874
• Marketing:  $22,173
• Labor:  $203,865
• Revenue Less Disclosed Expenses:  $228,120

Low Business

• 2020 Gross Revenue:  $273,059
• Royalty (6%):  $16,384
• Marketing:  $14,354
• Labor:  $118,969
• Revenue Less Disclosed Expenses:  $123,353

B. Franchised Businesses That Were Open 1-2 Years (as of 12/31/2020)

High Business

• 2020 Gross Revenue:  $742,601
• Royalty (6%):  $44,556
• Marketing:  $44,396
• Labor:  $398,733
• Revenue Less Disclosed Expenses:  $254,916

Average Business

• 2020 Gross Revenue:  $369,255
• Royalty (6%):  $22,155
• Marketing:  $23,980
• Labor:  $231,290
• Revenue Less Disclosed Expenses:  $91,830

Median Business

• 2020 Gross Revenue:  $274,616
• Royalty (6%):  $16,477
• Marketing:  $20,208
• Labor:  $208,480
• Revenue Less Disclosed Expenses:  $29,451

Low Business

• 2020 Gross Revenue:  $241,283
• Royalty (6%):  $14,477
• Marketing:  $27,891
• Labor:  $145,397
• Revenue Less Disclosed Expenses:  $53,518

C. Franchised Businesses That Were Open at Least 1 Year (as of 12/31/2020)

Average Business

• 2020 Gross Revenue:  $560,778 (100.0%)
• Royalty (6%):  $33,647 (6.0%)
• Marketing:  $31,766 (5.7%)
• Labor:  $253,473 (45.2%)
• Revenue Less Disclosed Expenses:  $241,892 (43.1%)

Part 2 – Triple Net Lease Costs (2020 Leases Executed)

• Part 2 below sets forth the lease costs for 13 of D1 Training’s franchised Businesses that executed leases in 2020.

NNN Lease (Annual)

• High:  $140,800
• Average:  $109,209
• Median:  $109,291
• Low:  $77,819

• Gross Revenues means the total revenue derived from the operation of the Business. 6/19 (31.6%) 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. 2/19 (10.5%) franchised Businesses paid more in Royalty than the average presented.

• Marketing Expenditures means the monies paid by the Business to the Marketing Fund per the terms of the Franchise Agreement as well as monies spent locally advertising the Business. 5/19 (26.3%) 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. 6/19 (36.8%) franchised Businesses expended more in Labor than the average presented.

• Revenue Less Disclosed Expenses means Gross Revenues less Royalty, Marketing Expenditures, and Labor. 7/14 (36.8%) 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.

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