Discovery Map Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$29,050 - $36,300
Franchise Fee
$18,750
Total US Locations
118
Business Summary
Discovery Map International, Inc. operates a franchise business that offers an advertising program primarily in the form of tourist and visitor information maps. These maps are supported by advertising space purchased by businesses such as restaurants, resorts, retail stores, local attractions, and other tourist-focused businesses in the community. Discovery Map International, Inc. also plans to introduce other products and services, potentially including digital advertising and marketing.
Corporate History
Discovery Map International, Inc. was incorporated in Vermont on October 18, 2005, under the name Resort Maps Acquisition Corporation. Its purpose was to acquire the assets of its predecessor, Murphy Holdings, Inc., which was formerly known as Resort Maps Franchise, Inc. After purchasing these assets on October 31, 2005, the company changed its name to Resort Maps Franchise, Inc. on November 2, 2005. The company further expanded on October 19, 2011, by acquiring assets from Starr Map Company, LLC, and Discovery Map International, LLC. The current entity adopted the name Discovery Map International, Inc. on November 1, 2011. The predecessor company first began offering franchises in 1993.
Financial Overview
Investment Range
$29,050 - $36,300
Franchise Fee (Low)
$18,750
Franchise Fee (High)
$25,000
Royalty %
10%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$4,450
Working Capital
$925
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Discovery Map International, Inc.'s financial statements for the fiscal years ending September 30, 2024, 2023, and 2022 received an unqualified opinion from its independent auditor, indicating they present fairly the company's financial position. The company benefited from loan forgiveness related to a Vermont Economic Development Authority loan in 2023 ($30,296) and a Paycheck Protection Program loan in 2022 ($96,959). The FDD mentions a potential risk for the stockholder related to Employee Retention Credit claims if audited by the IRS, but does not indicate a current financial health issue for the franchisor itself.
Financing Details
Discovery Map International, Inc. offers to finance a portion of the Initial Franchise Fee for qualified applicants, with the specific amount determined at its sole discretion, up to a maximum of 40% of the fee. The interest rate is set based on the borrower's creditworthiness and current market conditions, with a maximum term of three years. The financing is secured by a pledge of the Franchise Agreement, and a personal guarantee from the franchisee's principal owner is required. Franchisees can prepay the financing at any time without penalty. In cases of default, Discovery Map International, Inc. may declare the entire outstanding balance immediately due, collect all court costs and attorney's fees, terminate the franchise, and invoke a cross-default clause in the Franchise Agreement. The loan agreement also requires the franchisee to waive defenses against the franchisor.
Performance Metrics
Total US Locations
118
Franchised Units
119
Corporate Units
0
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Discovery Map International, Inc. has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Discovery Map International, Inc. has no bankruptcy history to report, as stated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Discovery Map International, Inc. franchise, franchisees must provide written notice of their intent to renew between six and twelve months before their current term ends. They must be in good standing, not having been in default of any agreement or having received three or more default notices during the current term. All financial obligations must be satisfied. Franchisees are required to sign Discovery Map International, Inc.'s then-current standard renewal Franchise Agreement, which may include different terms, such as royalty fees, advertising requirements, or territory size. They must also execute a general release of claims (unless prohibited by state law), and if required, the franchisee or an approved representative must attend and satisfactorily complete refresher training. The franchised business, equipment, and furnishings must be updated to conform to current brand standards, and a renewal fee equal to 20% of the then-current initial franchise fee must be paid.
Training & Support Program
Franchisor Assistance
Before opening, Discovery Map International, Inc. designates an exclusive territory for the franchisee, loans a copy of its Operations Manual, and provides general assistance, including help with planning pre-opening promotional programs (with 30 days' notice). It also offers initial training for up to two people at its Waitsfield, Vermont headquarters (franchisee covers travel/living expenses) and provides specifications for map design, appearance, distribution, fixtures, equipment, supplies, and services (which must be acquired from approved suppliers or the franchisor). During operation, Discovery Map International, Inc. provides up to five days of map mock-up development and preliminary map drawing for the first map. Franchisees are required to pay for map layout and assembly services to update and redraw their map every seven years. The franchisor continues to loan and update the Operations Manual, offers individual or group guidance on various business aspects (sales, marketing, hiring, customer service, maintenance), allows participation in system-wide programs, provides advertising material at its cost (subject to franchisee approval), and offers additional training (optional training may incur a fee). Discovery Map International, Inc. also maintains an internet website, providing each franchisee with a dedicated page and an email address.
Initial Training Hours
22
Training Location
Waitsfield, Vermont, with some virtual components
Ongoing Support
After opening, Discovery Map International, Inc. provides ongoing support through updates to its Operations Manual and offers individual or group advice and assistance via personal visits, online presentations, telephone, newsletters, brochures, reports, or bulletins. This guidance covers areas like maximizing sales and profits, marketing, employee hiring and training, customer service, vendor relations, equipment and facility maintenance, and resolving operational problems. Franchisees can participate in system-wide programs and receive advertising material from Discovery Map International, Inc. at its cost, or they can develop their own with prior approval. Optional training programs are available for a fee. The franchisor also maintains a website, providing each franchisee with a dedicated page and an email address. Franchisees are required to participate in electronic training programs for a minimum of two hours annually and attend an annual state of the system presentation if offered.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Supervisory
Territory Type
Exclusive
Territory Size Requirements
Discovery Map International, Inc. franchisees receive an Area of Exclusive Rights that is mutually agreed upon before the Franchise Agreement is signed. This area typically includes at least 400 businesses and is determined by factors like physical and human geography.
Staffing Notes
Discovery Map International, Inc. recommends but does not require personal participation in the business's operation. However, franchisees must devote their best efforts to managing the franchise and must obtain approval for anyone they hire as a general manager. Any individual actively involved in management or owning more than 20% of the business is required to attend the franchisor's training program. Franchisees are prohibited from employing anyone convicted of a felony or crimes involving gross misconduct or judgments that could adversely affect the brand's reputation.