Discovery Map Franchise Costs, Fees & FDD

Year Business Began: 1987

Franchising Since: 1999

Headquarters: Waitsfield, Vermont

Estimated Number of Units: 120

Franchise Description: Discovery Map International, Inc. is the franchisor. Franchisees operate a Discovery Map franchise, which is primarily an advertising program in the form of tourist and visitor information maps and guides supported by advertising purchased by restaurants, resorts, retail stores, local attractions and other tourist-based businesses in the community. The franchisor intends to introduce other products and services, possibly including digital advertising and marketing.
Training Overview: The franchisor will train franchisees and their key management people in the Discovery Map system. Initial training will last for up to four days, and will be conducted at the franchisor’s headquarters in Waitsfield, Vermont. There is no charge for initial training of up to two persons, but franchisees must pay the travel and living expenses of themselves and their people during the training program. The franchisor will provide up to five days of map mock-up development within the franchisee’s territory as well as provide additional time as necessary to prepare preliminary map drawing to be used by the franchisee, prior to the completion of the drawing, production and printing of the franchisee’s first map. The franchisor will provide franchisees with additional training on programs that it may develop in the future.

Territory Granted: Franchisees receive an exclusive territory called an “area of exclusive rights.” A minimum area of exclusive rights is mutually agreed prior to the execution of the Franchise Agreement. The area typically consists of at least 400 businesses, and it is based on a number of factors such as physical and human geography. The franchisor will not grant another franchise for a Discovery Map business within the area. Franchisees cannot solicit business outside their area but may do business in their area with persons who contact them from inside or outside the territory. The franchisor can develop, use and franchise other trade names and trademarks for other types of businesses anywhere. Presently, however, there are no plans to do so. Franchisees must generate minimum sales revenue for each year in their area.

Obligations and Restrictions: The franchisor recommends but does not require that franchisees personally participate in the actual operation of the franchised business. However, franchisees must devote their best efforts to the management of the franchise and the franchisor must approve anyone franchisees hire as a general manager of the franchised business. Anyone actively involved in its management or operation or who owns more than 20% of the business must attend the training program. The general manager need not own an equity interest in the business. The franchisor requires franchisees to offer and sell only those goods and services that it has approved. Franchisees must offer all goods and services that the franchisor designates as required for all franchisees. Franchisees must obtain the franchisor’s permission to offer any goods and services that it has not approved. Franchisees may not engage in any business activities that compete with the services offered by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew for two additional five-year terms.

Financial Assistance: The franchisor will finance a portion of the initial franchise fee for applicants, which it determines in its sole discretion are qualified. The loan agreement also requires franchisees to waive defenses and bars franchisees from asserting a defense against the franchisor. It is not the franchisor’s practice, or intent to sell assign, or discount to a third party all or part of the financing arrangement.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Map Coloring	$1,050	$1,750
Travel and Living Expenses while Training	$500	$1,500
Map Racks and Related Equipment	$1,500	$3,250
Computer System	$500	$1,200
Licenses/Deposits	$0	$250
Supplies & Misc. Expense	$250	$1,000
Insurance	$250	$500
Additional Funds	$0	$1,850
ESTIMATED TOTAL	$29,050	$36,300

 
Other Fees

Type of Fee	Amount
Royalty	10% of total gross sales, except 25% of sales of web ads.
Advertising	1% of total gross sales.
Additional Initial and Optional Training	$75 per hour.
Audits	Cost of audit plus interest on underpayment.
Late Fee	Late payment fee of 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.
Transfer, Assignment Fee	25% of the then-current franchise fee.
Renewal Fee	20% of the then-current franchise fee.
Costs and Attorneys’ Fees	Will vary under the circumstances.
Indemnification	Will vary under the circumstances.
Map Layout and Production Services	$75 per hour, subject to annual increase of up to 5%, compounded, $500-$700.
Discovery Map Publication System (DPS) Fee	$2,100 per year, subject to annual increase of up to 5%, compounded.

The above information has been compiled from the FDD of Discovery Map. Year of FDD: 2024.

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