The Scout Guide Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$129,600 - $288,100
Franchise Fee
$40,000
Total US Locations
95
Business Summary
Scout Guide, LLC offers franchises for an advertising publication business that specializes in producing and distributing high-quality advertising guides. These guides primarily feature advertisements from local small businesses. Scout Guide also maintains an internet site, thescoutguide.com, which promotes the guides online and hosts a blog. The company may also operate online versions of the franchised business and create advertising publications that include advertisers from various territories, such as Category Guides. Additionally, Scout Guide may implement digital advertising programs to promote advertisers on its national website and social media.
Corporate History
Scout Guide, LLC was organized as a Virginia limited liability company on June 2, 2011. Initially, the company operated two company-owned Scout Guide Businesses, specializing in high-quality advertising publications. Scout Guide, LLC has been promoting, distributing, and producing these publications through its company-owned businesses and licensees since 2011, though it no longer offers license agreements. The company officially began offering franchises for Scout Guide Businesses on October 2, 2012. In 2013, TSG Holding Company LLC was formed to own Scout Guide, LLC, and an affiliate, TSG Media LLC, was also organized. Since December 31, 2013, TSG Media LLC and its subsidiaries have taken over the operation of all company-owned Scout Guide Businesses.
Financial Overview
Investment Range
$129,600 - $288,100
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Royalty %
10%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$4,000
Working Capital
$9,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as shown in its financial statements, raises questions about Scout Guide, LLC's ability to provide services and support to its franchisees.
Financing Details
Scout Guide, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
95
Franchised Units
94
Corporate Units
1
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Scout Guide, LLC has no litigation to report.
Bankruptcy History
Scout Guide, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Conditions
To renew their franchise agreement, Scout Guide, LLC franchisees must notify the franchisor in writing at least 180 days before their current agreement expires. They must be in full compliance with their current Franchise Agreement and sign a general release of claims against Scout Guide, LLC. Franchisees will also be required to sign the then-current franchise agreement, which may include terms, conditions, and fees that are different from their original contract.
Training & Support Program
Franchisor Assistance
Scout Guide, LLC provides various forms of assistance to its franchisees. Before opening, franchisees receive one week of initial training, which can be in-person or virtual. While site selection assistance is not provided since the business can be home-based, the franchisor offers guidance on the type and number of employees to hire, as well as obtaining equipment, initial inventory, and supplies. Franchisees also get an initial set of administrative forms and access to a proprietary Operations Manual. During operation, Scout Guide, LLC offers support for operational problems, guidance on pricing, and general marketing assistance. The franchisor specifies required computer hardware and software, including platforms like Hubspot, Google Workspace, Emma, and Wordpress. Scout Guide, LLC manages a National Advertising Fund, collecting a monthly fee from franchisees to conduct various forms of advertising nationally, regionally, or locally. The franchisor also develops and maintains a comprehensive corporate website that includes franchisee contact information, engages in digital marketing, and negotiates vendor contracts for digital campaigns that franchisees can opt into.
Initial Training Hours
15.5
Training Location
On-site at corporate headquarters in Charlottesville, Virginia, or online
Ongoing Support
After opening, Scout Guide, LLC provides ongoing operational support to its franchisees for problems and issues they may encounter and offers assistance in setting recommended price levels. The franchisor also provides marketing assistance and support, and specifies required computer hardware and software systems. Additional training and seminars may be offered, which franchisees may be required to attend. Scout Guide, LLC manages a National Advertising Fund, collecting a monthly fee from franchisees, which is used for various types of advertising. The franchisor develops and maintains a comprehensive corporate website that includes franchisee contact information and manages digital marketing efforts, including social media and digital advertising campaigns. Franchisees also have continuous access to the Operations Manual, which is updated periodically. However, the franchisor does not provide ongoing maintenance, repairs, or updates for computer systems; franchisees are responsible for maintaining and upgrading their own hardware as required.
Franchise Requirements
Ideal Candidate Profile
Scout Guide, LLC is seeking franchisees or designated managers who are willing to participate personally and actively in the direct, full-time operation of the business, committing approximately 40 hours per week. All candidates must successfully complete the initial training program to the franchisor's satisfaction and pass a background check. Additionally, all owners of the franchise are required to personally guarantee the obligations under the Franchise Agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Scout Guide, LLC territories are defined by specific geographic regions, which are approved based on zip codes, natural, or political boundaries outlined in Schedule 1 of the Franchise Agreement. Each territory typically includes a minimum population of at least 250,000 people.
Staffing Notes
Scout Guide, LLC provides assistance and guidance on the type and number of employees franchisees should hire, though franchisees are solely responsible for all aspects of employee management, including hiring, firing, compensation, payroll taxes, and daily supervision. The franchisor requires either the owner or a designated manager to work in the business full-time, approximately 40 hours per week. This designated manager must complete the initial training and sign a Confidentiality and Non-Compete Agreement; they are not required to hold an equity interest in the franchisee's business.