We were formed as a limited liability company in the State of Tennessee on December 4, 2014. Our principal business address is 7115 S. Springs Drive, Franklin, Tennessee 37067, (888) 887-2469. We do business under our corporate name and as “D1”. We do not do business under any other name. We were formed to offer, sell and service franchises for D1 Training Facilities. We do not currently operate, nor have we in the past operated, a D1 Training Facility or any other type of business. We have not granted franchises for any other concept.
We are wholly owned by our parent, D1 Sports Parent, LLC (“Parent”). Parent is a Tennessee limited liability company formed on November 30, 2012. Parent shares our principal business address and our phone number. Parent currently owns the trademarks and other intellectual property used in the operation of D1 Training Facilities (as defined below). Parent has licensed us the right to use and sublicense the use of the Marks (as defined below). Parent has never operated a D1 Training Facility or any other business nor has it ever granted franchises for this or any other concept Our affiliate, D1 Sports HQ, LLC, is a Tennessee limited liability company formed on April 15, 2016 (“D1 Sports HQ”). D1 Sports HQ shares our principal business address and our phone number. We use the services of certain individuals and employees associated or employed with D1 Sports HQ to perform our obligations under our Franchise Agreements. D1 Sports HQ has never operated a D1 Training Facility or any other business nor has it ever granted franchises for this or any other concept. We have no predecessors that are required to be disclosed in this Item.
We offer and grant franchises to operate D1 Training Facilities. D1 Training Facilities are training facilities offering athletic-based scholastic and adult group training, coaching and personal training, and related goods and services. D1 Training Facilities operate under the name “D1®” and other trademarks, service marks, logos, and commercial symbols we periodically authorize (the “Marks”). D1 Training Facilities operate using business formats, operating and marketing methods, procedures, designs, layouts, standards and specifications (including available authorized products and services), all of which we designate and which we and our affiliates may own, improve, further develop, or otherwise modify (together, the “Franchise System”). We call the D1 Training Facility that you will operate “your Business”. To develop and operate a D1 Training Facility, you must meet our standards for franchise owners and must enter into our standard form of Franchise Agreement (the “Franchise Agreement”), the current version of which is attached to this Disclosure Document as Exhibit B. Under the Franchise Agreement, you will receive the right to use the Marks and the Franchise System to operate your Business at a site selected by you and approved by us (the “Premises”). We may, in our discretion, offer to you the right to enter into an Area Development Agreement (the “Area Development Agreement”), under which you would agree to acquire, develop and operate a specified number of franchises according to a specified schedule (the “Development Schedule”) within a specifically described geographic territory (the “Development Area”). Were we to make an Area Development Agreement available to you the form of the agreement you would sign is attached as Exhibit C to this disclosure document. For every franchise you develop under an Area Development Agreement, you must sign our then form Franchise Agreement, which may be different than the form we were using when you signed the Area Development Agreement.
When you sign the Franchise Agreement, you will pay us an initial franchise fee of $59,500, payable in a lump sum. We offer a reduced franchise fee for those who wish to open and develop multiple D1 Training Facilities. If you meet the conditions to pursue this we shall reduce the initial franchise fee as follows: (i) $30,000 for your second franchise agreement; (ii) $29,500 for your third franchise agreement; (iii) $29,000 for your fourth franchise agreement; (iv) $27,000 for your fifth franchise agreement; (v) $26,000 for your sixth franchise agreement; (vi) $23,500 for your seventh franchise agreement; (vii) $21,500 for your eighth franchise agreement; (viii) $19,000 for your ninth franchise agreement; and (ix) $19,000 for your tenth franchise agreement. We will fully earn the initial franchise fee when you pay it, and it is not refundable
We do not offer direct or indirect financing. We do not guarantee your promissory notes, mortgages, leases or other obligations
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial 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