Bottom line
- Total investment $118K – $153K including a $30K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.7M/year (median $1.2M).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 49 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one iTrip unit return on the cash you put in?
Unlevered ROIC · per unit
172%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 iTrip units return on equity?
Equity IRR · 5-yr
30.1%
3.73× MOIC
Year-1 DSCR
2.68×
EBITDA ÷ debt service
Equity required
$8.4M
on $19.1M purchase
Total debt
$10.7M
SBA $5.0M + senior + seller note
Overview
About
iTrip franchisees operate vacation rental property management services in protected territories, listing and managing short-term rental properties (likely on Airbnb, VRBO, etc.) on behalf of owners. Day-to-day operations include tenant screening, maintenance coordination, guest communication, cleaning/turnover management, and revenue reconciliation while paying 4-6.1% royalties on gross rental income.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
iTrip presents moderate-to-high caution due to missing profitability disclosure, undisclosed system growth, going concern issues, and a lengthy term that limits flexibility in a volatile vacation rental market.
Score breakdown · what drove the 49 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate 7-10 year ROI claims against the $117,500-$153,000 investment
- 02HIGHGoing Concern = False indicates potential franchisor financial distress or operational uncertainty
- 03MINOROnly 115 units with unknown growth trajectory — insufficient data to assess system momentum or franchisee success rate
- 04MINORRevenue-based royalty (4-6.1%) creates variable cost structure; if property management/booking volume drops, franchisees still pay on gross rental revenue
- 05MED10-year term is longer than industry standard (5-7 years typical) — locks franchisees into relationship with limited exit options
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
91 numbers
One-time purchase · CSV download · Validation questions included
FDD download
iTrip · FDD (2025) PDF