Are you interested in baseball and combining augmented reality and virtual reality together? Then you might be thinking of owning a Home Run Dugout franchise as they have opened up their virtual baseball revenue recently. They are a new company, but it definitely looks like a solid business opportunity.
Unfortunately, you can’t franchise with Home Run Dugout, but you can do licensing.
In this article, we will give you all the details about why Home Run Dugout doesn’t franchise, what is their licensing system, what you can expect, and what are the alternative companies.
About Home Run Dugout And Home Run Dugout History
Home Run Dugout is a social, indoor, high-tech baseball venue company offering entertainment experiences along with food and drinks.
Their service focuses on a sports entertainment experience with patented technology and their own soft toss pitching machines. It allows players from all levels to play softball socially.
Home Run Dugout was founded in 2015 and owns a number of venues. However, it is still a small company with about 10 employees.
They currently do not offer franchising, and the company grows mainly with VC money in its early stages. They offer a licensing system, but the details of this system are not public.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Franchise | Licensing |
| Franchise-Fee | NO |
| Estimated Outlets | 10+ |
How Much Does It Cost To Open A Home Run Dugout Franchise?
Because Home Run Dugout is not a franchise, there is also no cost associated with opening a Home Run Dugout Franchise. If the company decides to franchise in the future, they will come up with an average number of what you can expect to spend. However, right now, there are no such announcements.
They do mention that they do licensing on their website. This might let you use their brand name on your existing venue. There is no other information online about this, but you can reach out to them and learn more about it.
Why Doesn’t Home Run Dugout Offer Franchising?
It is not particularly clear as to why Home Run Dugout doesn’t offer franchising. The company is relatively new, and they don’t have a lot of venues, and they are backed by family, friends, and some investors. They didn’t make an official announcement, but it could be that they don’t have enough money to oversee the franchisees right now.
It could be another reason, too, like they don’t want to give up the ownership of the brand, or they may want to manage the quality of their venues by themselves.
Profit & Revenue
Home Run Dugout is a private company backed by venture capital and investors alike. That’s why the company never shares its financial information with the public because they don’t have to. They recently did a funding round in May 2022 and secured some amount for the brand, which is also undisclosed.
However, according to Kona Equity, the company’s annual revenue was $1.5 million in the fiscal year 2022. This is an extremely low point from the peak of $4.1 million in the fiscal year 2020.
What Are Some Alternatives To Home Run Dugout?
1. TopGolf
TopGolf is an indoor golf entertainment company that offers climate-controlled bays with its special technology systems. They also offer food and drinks and have music in their venues to allow a socializing experience while combining sports.
You can also have company events, birthday parties, and any kind of special events in their venues.
The company currently offers franchising only in Australia, Mexico, and the UAE. You can’t have a domestic franchise with them.
For international TopGolf franchising, the total expected cost for these locations is about $18 million. Each country has a different franchise and royalty fee structure.
2. D-BAT
D-Bat is a very famous baseball academy franchise offering baseball academies to those who want to learn sports.
The company was founded in 1998, and they focus on providing one-on-one classes to kids in their indoor climate-controlled golf facilities. These facilities are specially designed for optimized training sessions.
The company currently has over 100 venues, and almost all of them are franchised. They are still franchised, and the cost to open one is between $494,650 and $967,100.
This includes the $40,000 franchise fee, as well. In addition, you need to pay 8% of the royalty fee from your gross revenue.
3. I9 Sports
I9 Sports is one of the leading American multi-sport provider youth sports league franchises. They have high-quality, community-based programs designed for young people. They were founded in 1995, and they started their franchising system in 2003.
Since then, they have grown exponentially, and now they have over 200 franchises in the world, most of which are in the United States.
The expected average cost to open an i9 Sports venue is between $36,500 and $69,900. You need to pay a $53,200 franchise fee and a 7.5% royalty fee.
Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Monster Mini Golf | $40,000 | 7% | $700,000-$1 million |
| The Little Gym | $59,500 | 8% or $2,500/mo | $465,250-$637,000 |
| Home Run Dugout | NO | NO | NO |
Conclusion
Home Run Dugout is a fairly new technology-infused indoor social baseball venue that offers sports, food, drink, and entertainment altogether. They were founded in 2005, and they are mostly growing through investments.
Currently, the company isn’t franchising and has never franchised before. However, it says that they offer a retail program, but its details are not public. You can only learn it by getting in touch with them.
So, you can’t own a Home Run Dugout franchise, but there are many indoor sports entertainment venues that you can franchise with. These alternatives can be a good option if you are interested in the industry.
FAQs
Who is the investor in Home Run Dugout?
There are a number of undisclosed venture capital firms investing in the company. Also, there are some family, friends, and individual investors that invest and own it.
Is Home Run Dugout a franchise?
No, Home Run Dugout is not a franchise. However, they offer licensing opportunities, and its details aren’t available to the public.
What is the franchise fee for a Home Run Dugout?
Since Home Run Dugout is not a franchise, there is also no franchise fee, either.
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