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Business Description

We are a Texas corporation formed on March 4, 1993, under the name CMNS Properties, Inc. On October 29, 2007, we changed our name to D-BAT Academies, Inc., and we currently do business only under our corporate name. Our principal business address is 2101 Midway Road, Suite 300, Carrollton, Texas 75006. Our agents for service of process are identified in Exhibit C to this Franchise Disclosure Document. We have no parents or predecessors. Our affiliate, D-BAT Sports, Inc. (“DSI”), a Texas corporation, was formed on July 18, 2001, under the name “Dallas Bat, Inc.” DSI changed its name on August 27, 2007, to D-BAT Sports, Inc. DSI licenses the D-BAT trademarks to us for our use and to sublicense to franchisees. Our other affiliate, D-BAT, Inc. (“DBI”), a Texas corporation formed on April 3, 2001, operates a sporting goods manufacturing facility in Mount Pleasant, Texas, and is an approved or designated supplier for most pro shop inventory items. Both DSI and DBI maintain a principal business address at 2101 Midway Road, Suite 300, Carrollton, Texas 75006.

Prior Experience

We have no parents or predecessors. Our affiliate, D-BAT Sports, Inc. (“DSI”), a Texas corporation, was formed on July 18, 2001, under the name “Dallas Bat, Inc.” DSI changed its name on August 27, 2007, to D-BAT Sports, Inc. DSI licenses the D-BAT trademarks to us for our use and to sublicense to franchisees. Our other affiliate, D-BAT, Inc. (“DBI”), a Texas corporation formed on April 3, 2001, operates a sporting goods manufacturing facility in Mount Pleasant, Texas, and is an approved or designated supplier for most pro shop inventory items. Both DSI and DBI maintain a principal business address at 2101 Midway Road, Suite 300, Carrollton, Texas 75006. We have been offering franchises of the type described in this Franchise Disclosure Document since December 2007, and have never offered franchises or licenses in any other line of business. Neither we nor DSI operate a business of type you will operate.

Business Offered

We grant franchises for baseball training facilities and pro shops (“Facility”), that operate under our proprietary business format and system (our “System”) and are identified by the trade name and service mark “D-BAT®”, and other trademarks, service marks, logos and taglines that we designate, or in the future may designate, to identify Facilities operating under the System (our “Marks”). Our System includes distinctive interior and exterior design, décor, color scheme, graphics, fixtures and furnishings, our proprietary products, operation, and customer service standards and procedures, advertising and marketing specifications and requirements, and other standards, specifications, techniques, and procedures that we designate for developing, operating, and managing a D-BAT® Facility, all of which we may change, improve, and further develop (collectively, our “Standards”). It also features a proprietary membership program, designed to encourage customer loyalty by offering price discounts and other unique benefits to D-BAT members (“Membership Program”). D-BAT® Facilities offer personal training in the areas of pitching, catching, hitting and fielding, in addition to cage rental services, and batting cages, baseball pitching machines, softball pitching machines, climate control and retail pro shop. Some D-BAT® Facilities also feature an artificial turf field. If we award you a franchise, you will operate a D-BAT® Facility at an approved location according to the terms and conditions of our standard franchise agreement (“Franchise Agreement”) (see Exhibit D). In consideration for your right and license to use the Marks and System, you will be required to use best efforts to promote and solicit membership in our Membership Program, and you will designate us as your payment agent for membership fees. We will manage the Membership Program, accept payments on your D-BAT Academies, Inc. Franchise Disclosure Document | 2019 2 behalf, and, after deducting appropriate fees, remit the balance to you. Your management and advertising fees will be based on a percentage of Membership Fees collected. We do not charge a sales-based royalty and, therefore, revenues that you receive from providing private instruction and other services, and from the retail sale of equipment and apparel, are not subject to royalty fee calculations. If we approve your application to develop multiple Facilities in a defined geographic area, you will sign our standard Area Development Agreement (see Exhibit E). The Area Development Agreement will define your protected area (the “Development Area”), the number of Facilities to be developed, and the development timetable (the “Development Schedule”). Simultaneously with the execution of the Area Development Agreement, you will sign the form of Franchise Agreement attached as Exhibit D for the first Facility to be developed. You will also sign our then-current form of Franchise Agreement for each additional Facility to be developed under and in accordance with the Area Development Agreement.

Initial Fees

Earnest Money Payment Before you sign a franchise agreement or development agreement, if you elect to sign our Letter of Intent, which form is attached to this Disclosure Document as Exhibit I, we will collect an earnest money payment from you in the amount of $15,000 per location to be developed in exchange for our related costs and expenses as well as the agreement not to sell another franchise in the anticipated Site Selection Area outlined in the Letter of Intent for a period of 90 days. The earnest money amount is non-refundable. If you execute the contemplated franchise agreement before the date mutually agreed to and set in the Letter of Intent, we will credit all of the earnest money payment to your Initial Franchise Fee. The earnest money payment is uniform for all franchisees and is non-refundable upon payment. Initial Franchise Fee When you sign the Franchise Agreement, you will pay us in full an Initial Franchise Fee of $40,000. The Initial Franchise Fee is uniform for all franchisees, and is considered fully earned and nonrefundable upon payment. Area Development Agreement If you are acquiring development rights, upon signing our Area Development Agreement, you will pay to us a Development Fee equal to 100% of the Initial Franchise Fee for the first Facility and 50% of the Initial Franchise Fee for each additional Facility to be developed under the Area Development Agreement. When you sign the Area Development Agreement, you will also sign a Franchise Agreement for the first Facility to be developed. When you sign the first Franchise Agreement, we will credit a portion of your Development Fee payment to the Initial Franchise Fee due for the first Facility under the Franchise Agreement, so that the Initial Franchise Fee is fully satisfied. When you sign each additional Franchise Agreement, we will credit a portion of your Development Fee payment to satisfy 50% of the Initial Franchise Fee due with respect to such Facility, and you will pay the balance of the Initial Franchise Fee for such Facility at that time. The Development Fee is calculated uniformly for all franchisees and is nonrefundable upon payment. Initial Inventory Package Shortly after you acquire a site for the Facility, you must purchase from us or from designated or approved suppliers (including DBI), your opening and ongoing inventory of equipment, apparel, and other products to be offered and sold at the pro shop. We estimate the cost of this initial inventory will range from $50,000 to $65,000. Wholesale purchase prices are uniform for all franchisees and are nonrefundable. Initial Cage Usage Supplies Before you open the Facility, you must purchase from us or from designated or approved suppliers (including DBI), the products and supplies needed in order to operate the Facility's batting cages and conduct lessons. These products and supplies include, but are not limited to, your required quantity of baseballs and softballs for pitching machines, baseball and softballs for instructional lessons, batting tees, and home plates. We estimate that the cost of this Initial Case Usage Supplies package will range from $18,000 to $23,000. The purchase price for these supplies is uniform for all franchisees and is nonrefundable. Initial Marketing Products Shortly before you open the Facility for business, you must purchase from us or from designated or approved suppliers (including DBI) between $5,000 to $7,500 of giveaway items to be used in the initial marketing and promotion of the Facility. These items will be given to local baseball and softball leagues and coaches, and will primarily consist of T-shirts, personalized fungo bats, gift certificates, and coaching D-BAT Academies, Inc. Franchise Disclosure Document | 2019 4 buckets which include baseballs and baseball-related accessories. The purchase price for these items is uniform for all franchisees and is nonrefundable. Initial Software Fee When you sign your Franchise Agreement, you must pay us $2,500 as an Initial Software License Fee for the setup of our specifically designed D-BAT® membership tracking and scheduling software, which also functions as your point of sale system. This Initial Software Fee is uniform for all franchisees and is nonrefundable upon payment. Construction Management and On-Site Training Fee When you sign your Franchise Agreement, you must pay us $6,000 as a Construction Management and Onsite Training Fee for: i) our assistance throughout the construction process including consultation on facility design and layout, facilitating contact with vendors, and project management supervision; and ii) costs incurred in providing on-site training to you, typically provided the week before you open. This Construction Management and On-Site Training Fee is uniform for all franchisees and is nonrefundable upon payment.

Financing

We do not offer direct or indirect financing. We do not guaranty your note, lease or obligation.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial D-BAT Academies, Inc. Franchise Disclosure Document | 2019 31 performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.