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D-Bat

D-Bat Academies, LLC
https://www.dbatfranchises.com
1-972-398-1000
2101 Midway Road, Suite 300, Carrollton, Texas 75006

How much does D-Bat cost?

Initial Investment Range

$536,450 to $1,076,100

Franchise Fee

$90,000 to $124,000

The franchise offered is for a baseball and softball training academy and retail pro shop ('Facility') to be operated under the 'D-BAT' trademark.

Enjoy our partial free risk analysis below

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D-Bat June 4, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 19, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
1
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor has a significant and growing member's deficit (negative net worth) of over $4.4 million as of year-end 2024. The FDD explicitly flags the franchisor's financial condition as a special risk. Multiple states have imposed financial assurance requirements, such as deferring your initial fee payments, due to this weakness. This condition could impact the franchisor's ability to provide support or invest in the system, posing a direct risk to your investment.

Potential Mitigations

  • Your accountant must conduct a thorough analysis of the audited financial statements, including the deficit trend and the high level of distributions to members.
  • It is important to discuss the implications of the franchisor's negative net worth and any state-mandated fee deferrals with your franchise attorney.
  • A business advisor can help you assess if the franchisor's revenue and income are sufficient to support its obligations despite the weak balance sheet.
Citations: Item 21, Exhibit F, State Addenda (Illinois, Maryland, Minnesota, North Dakota, Virginia, Washington)

High Franchisee Turnover

High Risk

Explanation

The FDD discloses as a special risk that a “significant number” of franchise agreements have been signed with franchisees who have not yet opened. Item 20 Table 5 confirms this, showing 124 units signed but not open. This large backlog, relative to the 170 open units, may indicate systemic problems preventing franchisees from opening, such as issues with financing or site selection, which could also affect you.

Potential Mitigations

  • You should ask the franchisor for an explanation of the large number of unopened locations and the average time it takes to open.
  • Contacting franchisees on both the 'open' and 'not yet open' lists with the help of your business advisor is critical to understand the reasons for any delays.
  • Your attorney can help you understand the risks associated with this significant pipeline of unopened units.
Citations: Item 20 (Tables 3 and 5), Special Risks

Rapid System Growth

High Risk

Explanation

Item 20 data shows the system has been growing steadily, adding 28 franchises in 2023 and 21 in 2024. When combined with a large number of unopened franchises (124) and a disclosedly weak financial condition (negative net worth), this growth could strain the franchisor's limited support resources. The FDD notes the franchisor does not have a formal training staff, which may heighten this risk.

Potential Mitigations

  • It is wise to question the franchisor about their capacity and infrastructure to support this ongoing growth.
  • A discussion with both new and established franchisees about the quality and responsiveness of franchisor support is crucial.
  • Your business advisor can help you evaluate if the support systems seem adequate for a rapidly expanding network.
Citations: Item 20, Item 21, Exhibit F

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD Package. A new franchise system often lacks a proven track record, established brand recognition, and refined support systems. This can increase the risk for early franchisees, who are essentially testing the business model. It's important to evaluate the franchisor's experience and the system's viability before investing in a newer concept.

Potential Mitigations

  • If considering a new system, a business advisor can help you conduct extensive due diligence on the founders' industry and franchising experience.
  • An accountant should be retained to scrutinize the financial stability and capitalization of any new franchisor.
  • A franchise attorney may be able to negotiate more franchisee-favorable terms to compensate for the higher risk of joining an unproven system.
Citations: Item 1, Item 2

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD Package. A business concept tied to a short-term trend or fad presents a significant investment risk. Once public interest wanes, the business's revenue can decline sharply, potentially leading to failure. Prospective franchisees should assess whether a concept has long-term market demand and adaptability beyond its current popularity, as franchise agreements are long-term commitments.

Potential Mitigations

  • Before investing, you should work with a business advisor to research the long-term market demand for the products or services offered.
  • Evaluate the franchisor's stated plans for innovation and adaptation to changing consumer tastes.
  • Your financial advisor can assist in analyzing the business model's resilience to economic shifts and changing trends.
Citations: Item 1

Inexperienced Management

High Risk

Explanation

The FDD discloses that the franchisor does not maintain a formal training staff. Training is provided by the CEO and President on an as-needed basis. While the executives have experience in the industry, the lack of a dedicated training department or staff for a system with over 150 units and rapid growth could indicate a potential for inconsistent or inadequate support, which is a significant risk for new franchisees.

Potential Mitigations

  • A thorough discussion with a wide range of current franchisees about the quality, availability, and consistency of training and support is essential.
  • You should carefully evaluate whether the described training program seems sufficient for you to learn the business.
  • A business advisor can help you assess if the support structure appears adequate for the size and growth of the system.
Citations: Item 2, Item 11

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not indicate that the franchisor is owned by a private equity firm. When a franchisor is PE-owned, there can be a risk that decisions are focused on short-term investor returns, which may not always align with the long-term health of the franchisees' businesses.

Potential Mitigations

  • If a franchisor is PE-owned, engaging a business advisor to research the firm's track record with other franchise systems is prudent.
  • It is wise to ask franchisees about any changes in support, fees, or culture since a PE acquisition.
  • Your franchise attorney can help you understand any contractual terms that facilitate a sale of the system by its owners.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

The franchisor, D-BAT Academies, LLC, discloses a parent company, D-BAT Sports, Inc. (DSI), which licenses the trademarks to the franchisor. However, the FDD does not include the parent company's financial statements. While not always required, the absence of parent financials can sometimes obscure the full financial picture or stability of the ultimate brand owner, especially when the franchisor entity itself has a weak balance sheet.

Potential Mitigations

  • Your attorney can help you understand the relationship between the franchisor and its parent, DSI, and the implications of the licensing agreement.
  • An accountant should review the franchisor's financials in light of the parent relationship to assess overall stability.
  • It is important to ask the franchisor about the financial health and obligations of the parent company.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

The franchisor states in Item 1 that it has no predecessors. This risk, which relates to inheriting issues from a prior company that operated the brand, does not appear to be present. It is generally a positive sign when there is no complex or negative history from a predecessor entity.

Potential Mitigations

  • It is always a good practice to confirm the franchisor's history through online searches and franchisee discussions.
  • Your attorney should review the corporate history outlined in Item 1.
  • You can ask a business advisor to help investigate the brand's history to ensure no undisclosed predecessors exist.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD Package, as Item 3 states that no litigation is required to be disclosed. A pattern of lawsuits where franchisees allege fraud or where the franchisor sues many franchisees can be a major red flag about the system's health and the franchisor's relationship with its operators. The absence of such litigation is a positive indicator.

Potential Mitigations

  • Confirming the absence of litigation with your franchise attorney is a good final check.
  • You should still ask current and former franchisees about any informal disputes they are aware of.
  • Your attorney can conduct an independent search for litigation as part of the due diligence process.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
5
0
10

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
6
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
4
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
9
6
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.