|
Discovery Map Franchise ProfileTravel Franchises > Travel Agencies |
What Are the Initial Investment Requirements for a Discovery Map Franchise?
To open a Discovery Map franchise, you will need an initial investment ranging from $29,050 to $36,300. This includes a franchise fee of $25,000. It's important to have cash readily available within this range, as well as a net worth between $250,000 and $500,000. These financial prerequisites ensure that franchisees are well-prepared to launch and sustain their business effectively.
What Are the Ongoing Fees for a Discovery Map Franchise?
Discovery Map franchisees are subject to a royalty fee of 10% on gross sales, along with a marketing fee of 1%. These ongoing fees contribute to the overall support and marketing efforts provided by the franchisor. Understanding these costs is crucial for maintaining profitability and ensuring that you can allocate sufficient resources for both operational expenses and growth initiatives.
What Is the Financial Performance Potential of a Discovery Map Franchise?
The average annual revenue per unit for a Discovery Map franchise is approximately $59,502, with a median revenue of $52,290. The financial performance can vary significantly, with the lowest annual revenue reported at $15,540 and the highest at $277,400. Franchisees typically experience a breakeven period of about 24 months and can expect to recover their initial investment within approximately 12 months, making it a potentially lucrative opportunity for the right investor.
What Are the Operational Insights for a Discovery Map Franchise?
Running a Discovery Map franchise involves managing various operational costs, with total operating expenses averaging around $934,360 annually. Key expenses include payroll, office technology, and marketing. Franchisees must be prepared to handle these expenses while also focusing on generating revenue. The company's strong support system aims to help franchisees navigate these operational challenges and implement strategies for sustained growth and profitability.
Discovery Map Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Discovery Map Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Units | 119 | 118 | 119 |
| Net Change YoY | -1 | 1 | |
| Franchised Units | 116 | 115 | 119 |
| Net Change YoY | -1 | 4 | |
| Corporate Units | 3 | 3 | 0 |
| Net Change YoY | 0 | -3 |
Investment Overview
The Discovery Map franchise presents an attractive investment opportunity with a low initial investment range of $29,050 to $36,300. The franchise fee is set at $25,000, accompanied by a royalty fee of 10% and a marketing fee of 1%. Aspiring franchisees should have a net worth between $250,000 and $500,000 to qualify, ensuring they have the financial stability to support their business.
Revenue Potential
Franchisees can expect an average annual revenue of $59,502 per unit, with a median revenue of $52,290. The revenue range varies significantly, with the lowest annual revenue reported at $15,540 and the highest reaching $277,400. This wide disparity highlights the potential for growth and success within the franchise model, depending on market conditions and operational effectiveness.
Breakeven and Payback
The breakeven time for a Discovery Map franchise is approximately 24 months, allowing owners to recover their initial investment relatively quickly. Additionally, the investment payback period is notably favorable at just 12 months, indicating that franchisees can start seeing returns on their investment within the first year of operation.
Franchise Growth
Discovery Map has shown a steady growth trajectory, with 116 franchised units in 2022, slightly decreasing to 115 in 2023, and then increasing to 119 in 2024. This trend demonstrates the brand's resilience and potential for expansion, appealing to both new and existing franchisees looking to capitalize on market opportunities.
Financial Performance
The average profit and loss metrics reveal a robust financial structure, with total revenue averaging $1,093,118 per unit. The gross profit margin stands at an impressive 94.32%, indicating strong profitability. However, operating expenses are substantial at $934,360, which franchisees must manage effectively to maximize their earnings.
Operational Expenses
Key operational expenses for a Discovery Map franchise include compensation and payroll costs, which total $482,780 annually. Other significant expenses include office and technology costs at $149,062 and promotional and travel expenses at $83,596. Understanding these costs is crucial for franchisees to maintain profitability and ensure sustainable operations.
Frequently Asked Questions
The initial investment for a Discovery Map franchise ranges from $29,050 to $36,300, which includes a franchise fee of $25,000.