Risk Score
Pending analysis
Investment Range
$474,843 - $906,979
Franchise Fee
$30,000
Total US Locations
129
Business Summary
D1 Sports Franchise, LLC offers the right to own and operate D1 Training Facilities. These facilities provide athletic-based scholastic and adult group training, coaching, and personal training, along with related products and services, under the 'D1' brand name and marks.
Corporate History
D1 Sports Franchise, LLC was formed in Tennessee on December 4, 2014, with the purpose of offering, selling, and servicing franchises for D1 Training Facilities. The company initially began offering franchises on May 14, 2015, and has since refined its model, transitioning from larger facilities to a high-efficiency footprint typically ranging from 4,000 to 5,000 square feet. D1 Sports Franchise, LLC was originally owned by D1 Sports Parent, LLC until October 29, 2021, when D1 New HoldCo, LLC acquired full ownership. Historically, D1 Sports Franchise, LLC itself has not operated D1 Training Facilities or other types of businesses, nor has it granted franchises for other concepts.
Financial Overview
Investment Range
$474,843 - $906,979
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$59,500
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$304,265
Equipment Costs (High)
$649,497
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
D1 Sports Franchise, LLC's financial condition raises questions about its ability to provide services and support to franchisees. The company has reported net losses for the last three fiscal years, including a net loss of $936,821 in 2024. As of December 31, 2024, D1 Sports Franchise, LLC has a significant member's deficit (negative equity) of $11,361,973. Several state regulatory bodies (Illinois, Maryland, Minnesota, North Dakota, South Dakota, and Washington) have required D1 Sports Franchise, LLC to secure surety bonds, ranging from $59,500 to $344,500, to demonstrate its financial capability to meet pre-opening obligations to franchisees. The company is also jointly and severally liable under a $1 million revolving line of credit and a $14.7 million term loan held by its parent company, D1 New HoldCo, LLC, with outstanding balances of $97,817 and $12,132,000 respectively as of December 31, 2024.
Financing Details
D1 Sports Franchise, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any promissory notes, mortgages, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
129
Franchised Units
127
Corporate Units
2
Avg Square Footage
4,300
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
7
Litigation Summary
D1 Sports Franchise, LLC is currently involved in three pending litigation cases. Two cases were filed in April 2025: one arbitration against a former franchisee and its owners for abandoning their Naples, Florida franchise and immediately opening a competing business at the same location, with D1 Sports Franchise, LLC seeking injunctive relief and damages; and a separate lawsuit filed by a franchisee alleging fraud, breach of contract, and misrepresentation of the D1 franchise system, its profitability, and operational model, seeking injunctive relief and damages. The third pending case, filed in March 2025, is against D1 Sports Franchise, LLC's Vice President of Franchise Development and Vice President of Operations, alleging fraud, conversion, and consumer protection violations related to a Tallahassee, Florida franchise. Additionally, D1 Sports Franchise, LLC is required to disclose litigation from its affiliate, Ringside Development Company dba BIO-One Colorado Inc., due to common ownership. Ringside Development Company dba BIO-One Colorado Inc. has a history of regulatory actions, including consent orders in California in 2018 and 2021 for selling franchises without proper registration and for failing to disclose a former president's felony convictions. It also entered into an Assurance of Voluntary Compliance in Illinois in 2020 for selling a franchise without proper registration, and a Consent Order in Washington in 2020 for similar violations.
Bankruptcy History
D1 Sports Franchise, LLC has no bankruptcy history that is required to be disclosed in Item 4 of this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their D1 Training Facility franchise, franchisees must provide written notice of their election between 180 and 270 days before the Franchise Agreement expires. Franchisees must be in full compliance with their agreement and all mandatory System Standards at the time of election and renewal, including maintaining possession of the premises or securing and developing approved substitute premises according to current standards. D1 Sports Franchise, LLC must also be actively granting franchises for D1 Training Facilities at that time. A renewal fee of $15,000 is required, and franchisees, along with their owners, must sign D1 Sports Franchise, LLC's then-current franchise agreement, which may have materially different terms, and execute a general release of all claims against D1 Sports Franchise, LLC and its affiliates.
Training & Support Program
Franchisor Assistance
Before opening, D1 Sports Franchise, LLC assists with site selection and approval, lease review and approval, and provides a one-week initial training program for the franchisee (or Designated Representative) and General Manager. The company also provides on-site assistance for the grand opening, access to online Operations Manuals, and specifications for required equipment, computer systems, and marketing materials. D1 Sports Franchise, LLC also approves pre-sales opening advertising and offers guidance on pricing. During operation, D1 Sports Franchise, LLC provides an email account, offers periodic additional and refresher training, and gives general guidance on operational problems, System Standards, and purchasing. Franchisees receive lists of authorized vendors, access to template class workout programming, and support for the Brand Fund and website. D1 Sports Franchise, LLC also reviews and approves franchisee-developed advertising materials and may pay a $5,000 referral fee for new owners.
Initial Training Hours
76
Training Location
Nashville, TN or Online
Ongoing Support
After opening, D1 Sports Franchise, LLC provides ongoing support to franchisees through an email account, periodic additional and refresher training sessions, and general guidance, including assistance with resolving operational problems. Franchisees receive advice on System Standards, operating procedures, and methods, as well as on required purchases of Operating Assets and other products and services. The company provides lists of authorized vendors, establishes and operates a Brand Fund, and reviews and approves any franchisee-developed advertising and marketing materials. D1 Sports Franchise, LLC also maintains a website for the promotion of D1 Training Facilities and offers access to template class workout programming. Franchisees are required to attend an annual meeting, and D1 Sports Franchise, LLC offers a $5,000 referral fee to existing owners who refer new franchisees.
Franchise Requirements
Ideal Candidate Profile
D1 Sports Franchise, LLC recommends that its franchisees or their Designated Representative actively supervise the management and operation of their business. If the franchisee is a legal entity, they must appoint an approved individual as their Designated Representative, who must own at least 5% of the franchised business, have decision-making authority, and devote a reasonable amount of time to its operation and supervision. Additionally, franchisees must appoint an approved General Manager who will work full-time, supervise the day-to-day operations, and dedicate their best efforts to promoting the business and the D1 brand, without engaging in other significant management responsibilities that conflict with their duties to the D1 Training Facility.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
D1 Sports Franchise, LLC initially grants franchisees a non-exclusive Site Selection Area, which typically encompasses several zip codes, covering approximately 7,500 to 20,000 households. Once an approved business premises is selected, this area is replaced by a Designated Territory defined by a radius around the D1 Training Facility or specific geographic boundaries. This Designated Territory can range from a 0.20-mile to a 3-mile radius, depending on the number of qualifying households surrounding the premises. In rural or suburban areas, the Designated Territory is expected to contain approximately 7,500 households and/or 10,000 people aged 5 to 24. For urban, densely populated areas, the Designated Territory will be a smaller geographical area described by a certain number of blocks or a smaller radius. The size of the Designated Territory will vary based on population density and demographics.
Staffing Notes
Each D1 Training Facility must always be supervised by one or more individuals who have successfully completed D1 Sports Franchise, LLC's training program. If the franchisee (or their Designated Representative) is not supervising the business full-time, a full-time General Manager must be appointed and approved by D1 Sports Franchise, LLC. This General Manager is expected to supervise the day-to-day operations and dedicate their full efforts to the business, without significant management responsibilities in other activities. A 'full staff,' as defined for reporting purposes, includes a General Manager, at least one coach, and a recruiter. The Operations Manual provides further guidance on HR aspects such as recruiter, coach, and General Manager hiring, including job postings and strategies for staffing to win.