DILL DINKERS DC
Confidential Investment Memorandum
Flagship Indoor Pickleball Facility | Target Capacity: 11 Regulation Courts
Prime Location
Fort Totten / Upper Northeast D.C. Submarket
Strategic Site
Site Under Negotiation (NDA Required)
Investment Ask
$1.5 Million Seed Capital
Executive Summary

The Opportunity
We are launching the premier Dill Dinkers facility in an underserved, high-density corridor of Washington, D.C. This investment represents the intersection of America's fastest-growing sport and a disciplined, site-driven development strategy.
We hold the exclusive franchise rights to open Dill Dinkers locations in Washington, D.C., elevating this beyond a single-site operating opportunity.
The Brand
Proven Scale
  • 27 Dill Dinkers locations currently operating across the U.S., one of the fastest-growing franchise networks in the sport. Notably, 7 of those locations operate in the DMV market, which means we benefit from locally proven operational playbooks, not just national ones.
Strategic Advantage
  • Reduces market-entry risk through existing brand awareness
  • Supports faster customer adoption vs. independent launch
  • Improves execution certainty with a proven, scalable concept
The Operators
This opportunity is led by two partners with complementary skill sets, deep roots in the Washington, D.C. market, and the exclusive Regional Developer rights for the District, a franchise designation that grants them the sole authority to develop and operate Dill Dinkers locations across Washington, D.C.
Jonathan Boateng — Co-Founder
Jonathan holds a B.S. in Computer Engineering from Georgia Tech and has built his career in cybersecurity, business analysis, and project management for federal agencies. He leads site selection and operational strategy for Dill Dinkers DC, applying the same analytical rigor his technical background demands.
Travis Andrews — Co-Founder
Travis is the CEO of Init One Solutions, a DMV-based firm specializing in AI-powered digital intelligence and cloud solutions, where he has developed deep expertise in project management and organizational scaling. At Dill Dinkers DC, he leads the Regional Developer operations and franchise support infrastructure across Washington, D.C.
Beyond their roles as Regional Developers, Jonathan and Travis are also direct equity investors in Dill Dinkers at the corporate level, a position that reflects their conviction in the brand's long-term trajectory and ensures their interests are fully aligned with both the franchisor and the investors in this facility.
The Investment Thesis
$1.5 million in seed capital funds the build-out and working capital for an 11-court regulation facility in the Fort Totten / Upper Northeast D.C. submarket.
Investors receive a tiered return structure designed to prioritize rapid capital payback followed by a perpetual high-yield equity stake.
Dill Dinkers DC holds the exclusive franchise development rights for 3–5 locations across Washington, D.C. Founding investors in this facility receive Priority Access Rights to participate in every subsequent location before any public capital raise, creating a compounding opportunity for those who invest early in the platform.
Conservative Financial Modeling
Our modeling methodology deliberately excludes high-margin revenue streams and caps utilization assumptions well below industry benchmarks, creating multiple layers of financial cushion.
Base Case
Stabilized net income of $758K per year
Bull Case
Potential net income of $1.5M per year
Capital Payback
Approximately 3.2–5 years depending on scenario
The Market
Washington, D.C.'s dense residential population, combined with limited indoor recreational competition, creates an unusually attractive risk-adjusted opportunity. A specific Target Site has been identified that meets strict operational criteria, with advanced lease negotiations underway.
Site details and financial model available upon execution of NDA. This memorandum contains forward-looking statements subject to material risks and uncertainties.

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The "Target Site" Profile
To protect the integrity of ongoing negotiations, the specific location remains confidential pending NDA execution. However, we are actively underwriting a specific property that fits our strict operational model. Our site selection strategy prioritizes demographic density, competitive positioning, and structural suitability over opportunistic pricing.
Court Capacity
The target facility accommodates 11 Regulation Courts (including one champion court) with proper spacing for tournament-grade play and spectator areas.
Structural Specifications
18ft+ clear span ceiling height ensuring optimal playability and regulatory compliance for competitive events.
Demographic Targeting
High-density residential zone with limited indoor recreational competition and favorable household income profiles.
Economic Viability
Lease terms structured to ensure profitability at conservative 40-50% utilization rates, well below operational targets.
"The 'Green Light' Criteria: We have identified the specific site and are currently negotiating terms. Specific address and detailed site plans available upon execution of NDA."
Conservative Modeling Methodology
Built on "Worst-Case" Baselines
Our financial model incorporates multiple conservative assumptions designed to stress-test the business under adverse conditions. This approach provides sophisticated investors with confidence that projected returns reflect genuine operational capability rather than optimistic scenario planning.
Revenue Cushion Strategy: High-margin alcohol sales have been excluded entirely from these projections, despite representing 15-20% of revenue at comparable facilities. This deliberate omission creates substantial upside optionality while ensuring baseline projections remain achievable through core operations alone.
Utilization Cap Philosophy: Utilization ramps from 47.5% at launch to 55% by Year 2 and 60% by Year 3, materially below the 70-80% observed in top-tier markets. This conservative threshold accounts for seasonality, competitive entry, and demand variability while maintaining profitability.
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Year 1 Launch Strategy
Assumes 9 Months of Free Rent (not including NNN) through negotiated abatement. We treat this as a one-time "Launch Subsidy" to build cash reserves, not recurring income.
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Year 2 Reality Test
Assumes full market rent load plus annual escalations. The model proves viability without the subsidy, demonstrating sustainable economics.
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Ongoing Escalation Planning
All expense projections include annual increases for rent, labor, and operating costs to ensure multi-year accuracy.

The "Rent Cliff" Methodology
By modeling the abrupt transition from subsidized to full-market rent, we demonstrate that the business generates attractive returns even after losing the Year 1 advantage. This "stress test" approach provides investors with confidence in the underlying unit economics.
Financial Projections Overview
47.5%
Year 1 Utilization
Launch phase with conservative ramp-up assumptions
55%
Year 2 Utilization
Stabilized operations well below market potential
60%
Year 3 Utilization
Mature facility approaching top-tier performance
Year 1: Launch Dynamics
Net Income: $769k | Margin: 47%
Year 1 Net Income is stabilized by the negotiated rent abatement. This 'Launch Subsidy' offsets lower initial utilization (47.5%), allowing the facility to match its stabilized Year 2 profitability immediately. This protects cash flow while the member base ramps up.
Year 2: The Reality Test
Net Income: $758k | Margin: 35%
Even with conservative 55% utilization and full market rent, the business generates approximately $758k in annual profit. Our stabilized Year 2 assumption of 55% utilization is not a guess. A comparable Dill Dinkers franchise facility in Maryland is operating at 65% today. We're building your downside case around a number the brand has already surpassed. This represents the true operational capability of the facility under normalized conditions without subsidies or optimistic assumptions.
Year 3: Mature Operations
Net Income: $990k | Margin: 40%
As utilization increases to 60% (still below peak capacity), profitability expands dramatically. This demonstrates the substantial operating leverage inherent in the fixed-cost structure once the facility achieves market acceptance.
Critical Insight: The Year 2 performance validates the investment thesis. With full rent load and conservative utilization, the facility generates substantial profit, proving the business model without reliance on favorable temporary conditions.

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Understanding the Revenue Model
This is a "Facility Rental" model, not a hospitality model. We sell time on courts. Our conservative base case deliberately excludes alcohol sales to demonstrate raw operational viability.
The Core Principle: Utilization Drives Profitability
This sports facility operates on a fundamental economic principle: fixed costs are constant, regardless of court occupancy. Investments in courts, lighting, and infrastructure generate the same daily expenses. Unlike retail, every additional booked court hour contributes almost directly to the bottom line, after minimal incremental expenses.
Success hinges on membership engagement and visitor traffic. Members provide a reliable revenue base. However, the real impact comes from members filling courts and attracting others. Drop-in visitors pay premium rates, often representing the highest-margin revenue stream.
The strategic imperative is clear: maximize court occupancy across all available hours. Every time slot represents an opportunity to convert unused capacity into revenue. An empty court is lost revenue, a missed chance to build community, and a failure to attract new members.

Key Performance Metric
55% Average Utilization - Year 2 stabilized projection and the foundation of our base case financial model.
This benchmark represents the percentage of available court hours that are actively booked and generating revenue. Every percentage point improvement in utilization translates to tens of thousands of dollars in additional annual profit.
86%
Court Access
Primary revenue driver
13%
Membership Dues
Recurring revenue foundation
1%
Retail & Sponsors
Non-court income
Projected Revenue Breakdown (Year 2)
This analysis presents a realistic second-year projection based on achieving 55% average court utilization. This scenario excludes alcohol sales for a conservative baseline, though beverage sales can be a meaningful supplementary stream, and projects the revenue split as follows: Court Access (86%), Memberships (13%), and Retail/Sponsors (1%).
Court Access Revenue
$1,842,000
86% of Total Revenue
This dominant category includes all court usage, broken into five distinct booking types. This diversity provides resilience, allowing various booking types to compensate for each other's performance.
Membership Revenue
$287,000
13% of Total Revenue
Annual and monthly dues provide predictable, recurring revenue, stabilizing cash flow. Members often become brand ambassadors, driving organic growth. (Based on 500 members in base case)
Retail & Sponsorship
$30,000
1% of Total Revenue
Modest, passive income with minimal overhead. Equipment, merchandise, and sponsorships contribute margin without consuming court time or staff.
Deep Dive: Court Access Revenue Components
The $1.84 million in court access revenue deserves closer examination. Understanding the mix reveals strategic opportunities. Each booking type attracts different customers, occurs at different times, and requires unique operational support.
Open Play Sessions
54% of Court Access | Highest Volume
Social, drop-in sessions maximize court utilization during peak hours and foster community. They serve as the primary customer acquisition funnel, with many members starting here.
Private Reservations
18% of Court Access | Premium Pricing
Individuals or groups book entire courts for exclusive use, typically at $25-40/hour. These fill shoulder hours and attract serious players or corporate groups.
League Play
11% of Court Access | Recurring Weekly
Structured leagues run for 6-12 weeks. Players pay upfront, providing advance cash flow and guaranteed bookings. Leagues also boost concession sales.
Contract Time Blocks
9% of Court Access | Bulk Bookings
Coaches, corporate clients, or organizations purchase court blocks at discounted rates. These ensure utilization during slow periods and reduce marketing costs.
Events & Clinics
8% of Court Access | High-Touch Service
Birthday parties, corporate events, and clinics generate premium rates and word-of-mouth marketing. They require more staff but justify higher pricing through added services.

Unit-Level Economics (Per Court)
  • Operating Capacity: 14 Hours/Day (8am–10pm) × 365 Days
  • Blended Hourly Rate: ~$60/hr (Weighted avg. of Member/Non-Member rates)
  • Variable Cost per Hour: <$5/hr (Limited to electricity & HVAC)
  • High Profit Flow-Through: Since our biggest costs (Rent & Staff) are fixed, roughly 90% of every extra dollar earned becomes pure profit.
Strategic Implications for Operators
Revenue Concentration Risk
With 86% of revenue from court access, any utilization reduction poses significant risk. Diversification through memberships, retail, Food & Beverage, and alternative programming can mitigate this.
The Membership Paradox
Memberships, though only 13% of revenue, are strategically vital. Members use the facility more, creating a vibrant atmosphere. They are forgiving, provide feedback, and recruit others. Their value extends beyond the $287,000 line item, enabling other revenue streams.
Pricing Power & Elasticity
Success depends on pricing optimization. Open play needs volume-encouraging prices, while reservations command premiums without deterring bookings. Membership pricing balances committed revenue with accessibility. Ongoing analysis of booking patterns and feedback informs price adjustments.
The Utilization Challenge
Achieving 55% average utilization is demanding. Facilities with 10-16 courts open 14-16 hours daily mean 140-256 court-hours available. Reaching 55% requires filling 77-141 hours daily, year-round, despite fluctuations. This demands sophisticated demand generation and operational excellence.
Attract & Convert
Marketing drives awareness and first visits. Digital ads, partnerships, and events bring new players. Cleanliness, staff, and ease of participation determine return visits.
Engage & Retain
Converting visitors to regulars requires community building: social events, skill programs, leagues, and recognition. Communication via email, text, and app keeps the facility top-of-mind.
Optimize & Scale
Data reveals patterns: which hours need stimulation, which formats are highest margin, and which segments can expand. Dynamic pricing, targeted promotions, and innovation drive utilization gains and significant profit growth.
"Every hour a court sits empty represents not just lost revenue, but a missed opportunity to create the community atmosphere that makes a facility thrive. The most successful operators obsess over filling courts with the right mix of members and visitors at the right prices throughout the day."
Total Projected Revenue: Year 2
Based on 55% average court utilization without alcohol sales, the facility projects $2,166,000 in total annual revenue. This provides a strong foundation for profitability, assuming disciplined cost management. Third-year revenue growth of 15-25% is achievable through improved utilization (60-65%) and complementary streams like premium memberships and expanded retail.

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The Investment Structure: Safety First, Acceleration Second
Our capital structure reflects a sophisticated understanding of investor priorities: capital preservation during uncertainty, rapid payback during stability, and perpetual yield post-recovery. This tiered approach aligns management incentives with investor returns while maintaining operational flexibility.
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Phase 1: Capital Preservation (Year 1)
Split: 10% to Investors / 90% Retained
We utilize the rent abatement period to build a "War Chest" of cash reserves. Instead of distributing this one-time subsidy, we retain it to protect the site against operational volatility, construction delays, or market softness. This conservative approach prioritizes business stability over immediate returns, with a projected investor share of ~$76,900 in Year 1.
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Phase 2: The Payback Accelerator (Year 2+)
Split: 45% to Investors / 55% Retained
Once full rent obligations commence and the business stabilizes, we aggressively increase distributions to accelerate the return of capital. This elevated distribution rate (45%) continues until investors have received 100% of their principal investment, typically achieved by the end of Year 4 or early Year 5 under base-case assumptions.
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Phase 3: The Perpetual Yield (Post-Payback)
Split: 15% Equity Stake (Permanent)
After full capital return, investors retain a 15% equity position in perpetuity. This structure provides ongoing participation in distributions without any additional capital contributions. The perpetual equity interest allows investors to benefit from long-term facility operating performance and continued operational improvements.

Safety Covenant: The Liquidity Floor
All distributions are protected by a liquidity floor defined as 3 Months of Fixed Operating Expenses (Rent, NNN, Utilities, Core Payroll, and Insurance). This ensures the business maintains a solvency buffer to cover all mandatory obligations regardless of short-term revenue fluctuations. No distributions occur if reserves fall below this threshold.
Growth Bonus: The "Empire" Clause
Exclusive Priority Access for Founding Investors
Founding investors in this facility will be granted Priority Access Rights to invest in the subsequent facilities planned under our 3–5 Unit Franchise Development Agreement for Washington D.C., prior to any public capital calls. This secures your position in our future expansion.
Projected ROI & Capital Payback Timeline
A risk-adjusted return profile. Investors receive steady cash flow with a target 100% principal return in under 5 years, followed by a perpetual equity yield.
Year 1: Capital Preservation
Investor Share: ~$77K
Focus on building reserves and operational stability
Year 2-4: Accelerated Payback
Cumulative Investor Share: ~$1.4M (includes Y1-Y4)
Aggressive 45% distribution rate drives rapid capital return
End of Year 4 / Early Year 5: 100% Principal Returned
Target for full principal recovery.
3.2–5 year range depending on performance
Year 6+: Perpetual Yield
Annual Return: ~$181K (~12.1% Cash-on-Cash)
Cash flow income with no capital at risk

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The Upside Case: Realizing the DC Premium
Bull Case Scenario – Metropolitan Standard Performance
Our Base Case is priced for safety, but the site is built for scale. By achieving 'Metropolitan Standard' utilization and capping membership at 1,000 (approx. 90/court), the facility generates nearly 2x the profit.
BASE CASE (SAFETY):
  • 55% Utilization
  • No Alcohol Sales
  • 500 Members
  • Result: $758k Net Income
  • Payback: ~4.4 Years
BULL CASE (POTENTIAL):
  • 65% Utilization
  • Alcohol Sales ($120k revenue)
  • 1,000 Members
  • Result: $1.5 Million Net Income
  • Payback: ~3.2 Years
Drivers of the Bull Case
Membership Density
Increasing from 500 to 1,000 members (90 per court) adds ~$270k in high-margin revenue while maintaining court availability.
Utilization Boost
Moving from 55% to 65% (Metropolitan Standard) adds ~$335k in revenue.
Revenue Expansion
Activating the alcohol license adds ~$84k in profit.
Risk-Adjusted Return Profile & Scenario Analysis
Risk-Adjusted Return Profile & Scenario Analysis
The projected 100% principal return by the end of Year 4 / early Year 5 (a 3.2–5-year range) represents a compelling risk-adjusted return driven by conservative underwriting and durable unit-level economics.
Base Case (Conservative): Assumes $758k stabilized net income, leading to approximately a 4.4-year payback period.
Bull Case (High-Performance): Assumes $1.5M net income, potentially achieving a ~3.2-year payback period.
This two-scenario approach provides clarity on potential outcomes. Unlike pure equity plays, returns are driven by durable unit-level economics, demonstrated comparable performance, and conservative underwriting.
Upside Optionality
Base projections exclude high-margin alcohol sales and cap utilization at 55%, whereas the Bull Case demonstrates the significant upside potential of achieving 65% utilization and implementing a full beverage program.
Additional Upside Vectors: While standard leagues and retail are included in the base model, significant upside exists through alcohol sales (excluded from Base), high-stakes regional tournaments, and corporate buyouts—revenue streams that typically command premium margins well above standard court rental rates.

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How a $100,000 Investment Pays You Over Time
Assumes 60% steady-state utilization (Year 3+). · 5% annual pricing growth · 3% annual expense growth · 10-year hold period · Illustrative sale in Year 10 at 5× annual profit · Investor receives 10% in Year 1, 45% until capital repaid, 15% permanent ownership thereafter.
The Investment
Initial Investment
$100,000
Ownership Stake
~1% of the company
Capital Returned
Early Year 5
How Your Cash Flows Back to You
Year 0
–$100,000 invested
Years 1–5
≈ $109,000 received
Your full $100,000 returned
Years 6–9
≈ $13,000–$16,000 per year
Year 10
≈ $17,000 annual income

Total Cash Received from Operations (Before Any Sale)
≈ $185,000
If the Business Is Sold in Year 10
Optional Sale Scenario — Additional Proceeds
Projected Profit
Year 10 annual profit ≈ $1.7 million
Valuation
5× annual profit ≈ $8.7 million
Your Ownership
~1% of the company
This amount would be received in addition to the $185,000 already collected from operations.
Cash Already Received
≈ $185,000
Plus Exit Proceeds
≈ $87,000
Total If Sold in Year 10
≈ $272,000
Total Outcome (If Sold)
$272K
Total cash received
2.7×
Multiple on original investment
Estimated IRR ≈ ~18%
How This Differs From the S&P 500
S&P 500 at 9% Annually
After 10 years ≈ $237,000
This Opportunity
  • Your capital is returned around Year 5
  • You continue receiving income
  • You retain ownership
  • You can reinvest your returned capital elsewhere
  • Revenue additional upside potential from improved court utilization, pricing power and gradual activation of higher margin offerings like beverage sales and corporate events
The exit is not required to achieve strong returns — it represents additional upside.

Important Disclaimer
This example is for illustrative purposes only. A sale is not guaranteed. Returns depend on utilization, pricing growth, operating performance, and market conditions. Ongoing cash flow continues even if no sale occurs.

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Forward-Looking Statements & Disclaimer

Important Notice for Investors
This document contains financial projections regarding the anticipated performance of the proposed Dill Dinkers location in Washington, D.C. These projections are based on Management's current analysis of similar pickleball facilities, comparable market data in metropolitan areas, and specific assumptions regarding utilization and operational costs.
Comparable Data Methodology: Revenue and expense estimates are derived in part from the performance of existing facilities in markets with similar demographics. However, differences in local population density, competitive saturation, and consumer behavior may result in performance that deviates materially from these models.
Material Risk Factors: Actual results may vary due to market risks including competitive entry, construction timeline delays, lease negotiation outcomes, labor market conditions, and broader economic factors. Potential investors are cautioned not to place undue reliance on these figures, which should be viewed as targets rather than guarantees of future performance.

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Summary & Next Steps
The Market Imperative
Pickleball is the fastest-growing sport in America, with participation increasing 159% over three years. Yet Washington D.C. remains severely underserved relative to comparable metropolitan markets. This facility will be the premier indoor destination in the Fort Totten / Upper Northeast D.C. Submarket, capturing pent-up demand from a dense residential population.
Competitive Moat: The combination of location, capacity (11 courts), and operational expertise creates substantial barriers to competitive entry. High-quality indoor facilities require significant capital, favorable real estate, and operational know-how—creating significant barriers to entry in this submarket.
Investment Ask
$1.5 Million Seed Capital to fund buildout, courts and working capital
Target Capacity
11 Regulation Courts for leagues, tournaments, and open play
Stabilized NOI (Year 2)
$758k (Base Case) / $1.5M (Bull Case)
Payback Period
3.2 - 5 Years (depending on performance scenario)
The Process: Soft Circle Participation
We are currently accepting non-binding soft commitments to finalize our lease negotiation position. This "soft circle" process allows sophisticated investors to signal interest and secure allocation priority without immediate capital deployment. Final terms and operating agreement structure will be provided upon lease execution. Detailed lease economics, construction budgets, and downside sensitivity scenarios are available under NDA following an introductory call.
Step 1: Introductory Call & EOI
Carefully review this Investment Memorandum and accompanying financial projections. Assess alignment with your investment thesis and risk tolerance. Schedule a Founder Call to discuss the vision and timeline. Submit a non-binding Expression of Interest (EOI) to signal allocation intent.
Step 2: NDA & Data Room
Execute the NDA to unlock the full Investment Package, including the live financial model, lease abstract, and franchise disclosure documents.
Step 3: Closing & Capital Deployment
Review final Operating Agreement. A capital call is issued prior to lease execution to fund the security deposit and secure the site. Funds are held in escrow and released only upon successful lease signature.

Investment Parameters:
  • Total Raise: $1.5 Million
  • Minimum Check Size: $50,000
  • Investor Classification: Accredited Investors Only
  • Structure: LLC Operating Agreement with Tiered Distribution Schedule
  • Timeline: Soft Circle (Current) → Lease Execution (Q2 2026) → Construction (6-9 months) → Launch (Late 2026 / Early 2027)
Next Steps
Soft Circling Now – Schedule Introductory Call
Ready to learn more or signal your interest? Submit a confidential expression of interest using the link below. A member of our team will follow up within 48 hours to schedule an introductory call




Confidential – For Illustrative Purposes Only | Contact Information Available Upon Request

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