About Discovery Map Franchise
Discovery Map is an advertising franchise built around illustrated tourist and visitor information maps distributed in popular travel destinations.
Owners sell advertising space on these maps to local businesses such as restaurants, resorts, retail stores, and tourist attractions within their community.
The franchise fee is $25,000, and the company has been franchising since 1993.
Discovery Map Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 10% of total gross sales, except 25% of sales of Digital Media Ads of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of total gross sales (if instituted) | National brand fund |
| Total Investment Range | $35,950 – $45,950 | Includes build-out, inventory, working capital |
The investment range of $36K–$46K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of total gross sales, except 25% of sales of Digital Media Ads) and marketing fee (1% of total gross sales (if instituted)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Map Layout and Production Services | $1,800 | $3,000 |
| Map Drawing | $2,500 | $4,000 |
| Ad Production Services | $2,000 | $3,000 |
| Travel and Living Expenses while Training | $500 | $1,500 |
| Office Equipment and Fixtures | $1,500 | $3,250 |
| Computer System | $800 | $1,200 |
| Licenses/Deposits | $100 | $250 |
| Supplies & Misc. Expense | $500 | $1,000 |
| Insurance | $250 | $500 |
| Sales Expense | $500 | $750 |
| Additional Funds | $500 | $2,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of the then-current Initial Franchise Fee |
| Renewal Fee | 20% of the then-current Franchise Fee |
| Technology Fee | $2,000 per year, subject to annual increase of up to 5%, compounded (Discovery Map Publication System (“DPS”) Fee) |
| Audit Fee | Cost of audit plus interest on underpayment |
| Additional Initial and Optional Training | $1,500 per person; we reserve the right to increase this fee |
| Late Fee | 1.5% per month or the maximum interest rate permitted by state law if less, from date these amounts were originally due until paid. Fee of $100 per late or incomplete submission |
| Costs And Attorneys’ Fees | Will vary under the circumstances |
| Indemnification | Will vary under the circumstances |
| Map Layout and Production Services | $70-$95 per hour, subject to annual increase of up to 5%, compounded, $500-$700 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to four days |
| Classroom Training | 20-28 hours |
| On-the-Job Training | 0 hours |
| Training Location | Waitsfield, Vermont (headquarters) and Virtual (for Sales Training) |
| Additional Training | Initial training is free for two people; additional persons are charged $1,500 per person. Optional training programs may be charged at $500 per person, per day. Mandatory additional training programs are free, but franchisees must cover their own travel and living expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | No minimum Area |
| Description | Franchisees receive an exclusive 'Area of Exclusive Rights' mutually agreed upon prior to signing the Franchise Agreement. The franchisor will not grant another Discovery Map® franchise within this designated area. Franchisees cannot solicit business outside their Area but may do business with contacts from outside their territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional five-year terms |
| Renewal Fee | 20% of the then-current Franchise Fee |
| Renewal Conditions | To renew, franchisees must provide 6-12 months' notice, not be in default (or have received three or more default notices in the prior term), satisfy all monetary obligations, sign the then-current standard renewal Franchise Agreement (which may have different terms, including royalty and territory), comply with current standards, sign a general release (except where prohibited by state law), and complete refresher training if required. |
| Transfer Fee | 25% of the then-current Initial Franchise Fee |
| Transfer Conditions | Transfers require franchisor approval, which will not be unreasonably withheld. Conditions include: franchisee not being in default, signing a release (except where prohibited by state law), transferee meeting new franchisee qualifications and completing training, transferee signing a new Franchise Agreement, and payment of a non-refundable transfer fee equal to 25% of the then-current Initial Franchise Fee. |
| Termination for Cause | The franchisor can terminate for cause if the franchisee defaults on the agreement. Curable defaults (with 15 days to cure) include: having an interest in a competitor, failure to make payments, failure to maintain the business to standards, failure to submit reports, failure to follow the Operations Manual, failure to obtain required permissions, failure to accurately record sales, failure to print/distribute maps annually, failure to pay debts, or failure to meet minimum sales performance standards. Non-curable defaults (immediate termination) include: abandonment, misuse of trademarks, repeated defaults, intentional underreporting of sales, operating in violation of law, material misrepresentation, unauthorized transfer attempts, disclosure of confidential information, felony conviction, failure to satisfy judgments, or failure to maintain independent contractor status. |
| Non-Compete Period | 2 years post-termination/expiration; permanent for licensed rights |
| Non-Compete Details | During the term of the franchise, franchisees and controlling persons cannot be involved with any competing business anywhere in the United States. For two years after termination or expiration, they cannot operate a competing business within their former exclusive territory or the territory of any other franchisee. There is a permanent restriction on using licensed rights in a similar line of business. These covenants protect the franchisor's trade secrets and competitive advantage. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While personal participation is recommended, it is not required. However, the franchisee must devote their best efforts to management, and any general manager hired must be approved by the franchisor. Anyone actively involved in management or owning more than 20% of the business must complete the initial training program. |
| Required Suppliers | Franchisees must purchase display racks, trademarked materials, printing, map layout and design services from the franchisor or approved suppliers. The franchisor is the only approved vendor for all trademarked material and the only approved supplier of map layout and map assembly services. |
| Supply Restrictions | The franchisor does not make its criteria for vendor/supplier approval available to franchisees. If a franchisee wishes to use an unapproved supplier, they or the supplier must submit a written request for approval. The franchisor may require inspection of the supplier's facilities and product samples for testing or evaluation. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, the franchisor realized $74,446 in revenue from map layout and assembly services, accounting for 8% of total revenues. Potential revenue from the automated online billing and credit card payment processing system is expected to be less than 5% of total revenue. The franchisor also receives a small commission from approved print vendors for preparing digital files, maintaining relationships, and monitoring print quality. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Discovery Map International, Inc. or an affiliated company may finance up to 67% of the Initial Franchise Fee. The interest rate is determined by the borrower's creditworthiness and prevailing market conditions, with a maximum term of 3 years. The financing is secured by a pledge of the Franchise Agreement, and a personal guarantee from the franchisee's principal owner is required. Prepayment is allowed without penalty. Default remedies include immediate acceleration of the outstanding balance, payment of collection costs and attorney's fees, franchise termination, and invocation of the cross-default clause in the Franchise Agreement. Franchisees waive defenses against the franchisor in the loan agreement. |
Discovery Map Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Discovery Map Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Discovery Map System Growth
Discovery Map currently operates 117 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 6 | 7 | 135 |
| 2020 | 6 | 21 | 119 |
| 2021 | 7 | 6 | 120 |
Transfers: 5 | Closures: 6
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by R.J. Gold & Company, P.C. for year ending September 30, 2021.
Discovery Map Franchise — FAQ
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