Dill Dinkers Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$178,050 - $866,050
Franchise Fee
$125,000
Min Cash Required
$25,000
Total US Locations
17
Business Summary
Dill Dinkers Franchising, LLC offers franchises for businesses that act as regional developers. A Dill Dinkers regional developer is responsible for recruiting new franchisees to open Dill Dinkers pickleball clubs within a specific territory. Regional developers also provide ongoing support, including site acquisition, operational assistance, training, and marketing services to the Dill Dinkers pickleball clubs in their assigned area. The Dill Dinkers pickleball clubs themselves are dedicated indoor facilities offering a variety of pickleball activities such as open play, lessons, leagues, tournaments, and special events, and include a retail pro shop and vending for food and beverages.
Corporate History
Dill Dinkers Franchising, LLC was formed in Delaware on July 28, 2023, and started offering franchises for regional developer businesses in 2023. Its parent company, Dill Dinkers Holdings, Inc., was incorporated just one day earlier, on July 27, 2023. An affiliate, Dill Dinkers, LLC, which was formed on March 30, 2022, owns and operates the company's pickleball clubs. The very first Dill Dinkers pickleball club opened in Columbia, Maryland, in November 2022, and by June 30, 2024, Dill Dinkers, LLC operated five company-owned pickleball clubs.
Financial Overview
Investment Range
$178,050 - $866,050
Franchise Fee (Low)
$125,000
Franchise Fee (High)
$750,000
Minimum Cash Required
$25,000
Equipment Costs (Low)
$15,750
Equipment Costs (High)
$50,150
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Dill Dinkers Franchising, LLC raises concerns, as indicated by sustained net losses and an accumulated member's deficit of $1,718,090 as of June 30, 2024. The franchisor has been funding its operations primarily through operating cash flows and contributions from its Parent company. Management notes that the company is growing and incurring near-term expenditures to expand its franchisee base and enter new markets. Despite these financial challenges, management projects increased revenues from existing and new franchisees and believes that continued growth and new agreements will provide enough cash to operate for at least the next 12 months.
Financing Details
Dill Dinkers Franchising, LLC does not offer any direct or indirect financing arrangements to its regional developers. The franchisor also does not guarantee any notes, leases, or other obligations of its regional developers.
Performance Metrics
Total US Locations
17
Franchised Units
17
Corporate Units
0
Avg Square Footage
1,050
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Dill Dinkers Franchising, LLC has no litigation to report in Item 3 of its FDD.
Bankruptcy History
Dill Dinkers Franchising, LLC has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Conditions
Dill Dinkers Franchising, LLC does not offer a right to renew the regional developer agreement.
Training & Support Program
Franchisor Assistance
Dill Dinkers Franchising, LLC provides its regional developers with pre-opening assistance that includes designating the territory, initial training in the System, access to confidential Manuals, and general merchandising, marketing, and related advice. After opening, Dill Dinkers Franchising, LLC offers ongoing assistance such as additional training, continued access to Manuals, updated merchandising and marketing advice, periodic individual or group consultations via personal visit, phone, mail, or email, and bulletins or reports on company plans and developments.
Initial Training Hours
24
Training Location
Columbia, Maryland
Ongoing Support
After opening, Dill Dinkers Franchising, LLC provides its regional developers with ongoing training, updated Manuals, and periodic individual or group advice, consultation, and assistance via personal visit, telephone, mail, or e-mail. Regional developers also receive bulletins, brochures, and reports on the franchisor's plans and activities. The Operating Principal and other designated individuals may be required to attend up to 10 days of refresher training programs annually and an annual convention for up to three days.
Franchise Requirements
Ideal Candidate Profile
Dill Dinkers Franchising, LLC is seeking regional developers who are qualified applicants with demonstrated expertise and capital. Ideal candidates are those who meet educational, managerial, and business standards; possess good moral character, business reputation, and credit rating; have the aptitude and ability to operate the Regional Developer Business, potentially evidenced by prior related business experience; and have adequate financial resources and capital. The Operating Principal must be involved personally in the direct operation of the Regional Developer Business and own at least 5% of the equity interest. A General Manager is also required for direct oversight and management of daily operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Each Dill Dinkers Franchising, LLC regional developer territory is anticipated to be sized to include one Dill Dinkers Club per approximately 100,000 people in population. The franchisor considers several factors when defining the boundaries of the territory, including population base and density, growth trends, affluence, density of residential and business entities, traffic generators, driving times, and major topographical features like rivers or mountains.
Staffing Notes
Dill Dinkers Franchising, LLC regional developers must maintain a competent, conscientious, and trained staff in numbers sufficient to service RD Territory Franchisees and solicit prospective franchisees, ensuring at least one manager is on duty at all times. Regional developers are solely responsible for all employment and personnel decisions, including hiring, firing, training, and supervision. The business operations must be managed and supervised by an Operating Principal, and a General Manager is responsible for the direct oversight of daily operations and personnel.