Itrip logo

Itrip Franchise

Audited Financials
Real EstateEst. 2015Knoxville, TN
www.itrip.net

Risk Score

Pending analysis

Investment Range

$117,500 - $153,000

Franchise Fee

$9,000

Total US Locations

115

Business Summary

iTrip, LLC offers a franchise for individuals and entities to independently own and operate an iTrip Business. This business specializes in providing property management and online listing services for vacation or other rental properties on behalf of property owners. iTrip also assists these property owners in finding and securing potential third-party rental guests and offers authorized digital marketing services, all while utilizing iTrip's proprietary marks and business system.

Corporate History

iTrip, LLC was organized in Tennessee on June 2, 2015, and began offering iTrip franchises on July 15, 2015. iTrip, LLC is a subsidiary within a larger corporate structure, with its immediate parent being iTrip Holdco, LLC, which is ultimately owned by Smokey Parent L.P. Several affiliates within this structure provide services to iTrip, LLC's franchisees, including Rental Guardian Holdings, LLC for travel and damage insurance, Bluetent Marketing LLC for booking website connections, Lynnbrook Consultants LLC for payment processing, Local Social, Inc. for data management tools, and Streamline VRS, LLC for revenue management solutions. The proprietary marks used by iTrip, LLC are owned and licensed by its affiliate, ITA-III, LLC. Before offering franchises, iTrip also had three affiliated general partnerships that offered software and web hosting licenses, which have since merged into ITA-III, LLC, and all U.S. licensed locations under these partnerships have been converted to franchised businesses.

Financial Overview

Investment Range

$117,500 - $153,000

Franchise Fee (Low)

$9,000

Franchise Fee (High)

$30,000

Royalty %

4%

Equipment Costs (High)

$4,000

Working Capital

$46,488

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

iTrip, LLC appears to be in sound financial health, having reported net earnings of $3,537,300 in 2024 and $2,880,717 in 2023. The company generally maintains cash deposits at banks that exceed federally insured amounts, and management does not believe it is exposed to significant credit risk related to cash. There is no indication of any substantial doubt about iTrip, LLC's ability to continue as a going concern. A subsequent event in January 2025 involved an equity-backed minority recapitalization of its parent company, which altered the board of directors and governance structure, but iTrip, LLC's management is currently assessing the allocation of the purchase price related to this event.

Financing Details

iTrip, LLC does not offer any direct or indirect financing to its franchisees. Additionally, iTrip, LLC does not guarantee any franchisee's notes, leases, or other financial obligations.

Performance Metrics

Total US Locations

115

Franchised Units

114

Corporate Units

1

Franchising Since

2015

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew, iTrip, LLC franchisees must provide written notice of their intent to renew between 6 and 12 months before their initial agreement expires. The franchisor must still be offering franchises in the franchisee's designated area. Franchisees must have consistently complied with all terms of their Franchise Agreement and Brand Standards, and be current on all monetary obligations to iTrip, LLC and its affiliates. They are required to refurbish and remodel their Approved Premises to meet current brand standards, attend any additional training courses, pay a $5,000 successor term fee, and execute a general release of claims against the franchisor.

Training & Support Program

Franchisor Assistance

iTrip, LLC provides comprehensive support to its franchisees. Before opening, iTrip defines the Designated Territory, grants access to its Brand Standards, provides lists of Required Purchases and Approved Suppliers, and sets up two email addresses. It may also offer assistance with the grand opening advertising program. Franchisees and their Designated Managers must complete an Initial Training Program, which includes both Business Development and Operations Modules (conducted virtually or in-territory) and a Software Module (conducted in Nashville, Tennessee, or virtually). After opening, iTrip, LLC may require or offer additional on-site and refresher training programs for a fee, and provides ongoing consultation and advice via various communication channels like webinars, telephone, and intranet. It reviews requests for Approved Commercial Office relocations, approves or denies all advertising and marketing materials, and may require attendance at an annual conference for a fee. iTrip, LLC also displays the franchisee's contact information on its websites, may establish an iTrip Brand Fund for system-wide advertising, and maintains an iTrip Web Portal. The franchisor conducts inspections and audits to ensure compliance and may establish a System-wide Call Center with associated subscription fees.

Initial Training Hours

68

Training Location

Nashville, Tennessee or virtual medium; home office, franchisee's vehicle, or other designated location within the Designated Territory or virtual medium for some modules

Ongoing Support

iTrip, LLC provides various ongoing support services to its franchisees after opening. This includes offering and potentially requiring additional on-site or refresher training programs (up to 5 days per year in-person and 24 hours per year virtually), which may incur an additional fee. Franchisees receive continuing consultation and advice via group webinars, telephone, intranet, Zoom, or other appropriate communication channels. iTrip, LLC reviews requests if a franchisee wishes to relocate their approved home office to a commercial space. The franchisor also approves or denies all advertising and marketing materials used by franchisees and may require attendance at an annual conference for a fee. iTrip, LLC displays the franchisee's contact information on its websites to promote their business and may establish an iTrip Brand Fund for system-wide advertising. It also maintains an iTrip Web Portal for resources and communication. The franchisor conducts inspections and audits to ensure compliance with system standards and may establish a System-wide Call Center with subscription fees in the future. iTrip, LLC may also modify its Brand Standards to provide new operations concepts and ideas.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Hands-On

Territory Type

exclusive

Territory Size Requirements

iTrip, LLC defines its franchisee territories based on an analysis of several data points, including the number of existing short-term rental listings, local rental restrictions and regulations, topography, visitor numbers, and general demographics. Based on this analysis, a Designated Territory is classified as either a Primary Market (having more than 900 short-term rental listings) or a Boutique Market (having at least 500 short-term rental listings). The size and shape of these territories vary among franchisees, and their boundaries are typically defined using GPS coordinates. iTrip, LLC does not have a standard minimum area granted to all franchisees.

Staffing Notes

iTrip, LLC franchisees must staff their business according to the specifications and criteria outlined in the Brand Standards for employee selection, qualifications, hiring, and training. This involves maintaining a sufficient number of competent, conscientious, and trained staff to efficiently service rental guests. While iTrip, LLC prescribes minimum staffing levels, these are intended to ensure adherence to brand quality and service standards, not to control daily operations. Franchisees are solely responsible for all employment decisions, including hiring, firing, scheduling, and compensation. Key job roles identified in the Brand Standards include Booking Agent, Operations Manager, Business Development Manager, and Property Inspector. Franchisees or their Operating Owner must also personally participate in the day-to-day operations and manage the business, or designate a manager who meets specific educational, managerial, and business standards and completes the initial training program.