TourScale Franchise Cost, Revenue & Review 2026
- Investment
- $140K – $211K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
TourScale is a travel and recreation franchise that owns and operates tour and activity brands offering guided local experiences. Franchisees run tour operations, managing bookings, guides, and customer service.
FranchiseVerdict summary · 2026
A TourScale franchise requires a total initial investment of $140K – $211K, including a $30K – $50K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $140K – $211K
- 12th pct Recreation & …
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 9th pct Recreation & …
- Units
- 36
- 37th pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $140K – $211K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSThe figure shown was the annual gross sales attributable to ONE 15-passenger Trolley Pub vehicle (printed p.48) — a per-asset figure, and for the cheapest of four concepts the system operates. A single franchise may run multiple vehicles across concepts, and no per-outlet average appears anywhere in Item 19.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHPositive: net +5 franchised outlets in the latest year (7 opened, 2 closed) (Item 20).
- GROWTHSystem growing at 108.3% CAGR over 3 years with 36 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- TourScale Franchising, LLC
- Parent company
- TourScale, LLC
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- TourScale Enterprises, LLC
- FDD Item 1, page 7 of the 2025 FDD
- Predecessor
- TourScale Enterprises, LLC (TSE)
- Prior franchisor entity
- CEO title
- Co-Chief Executive Officer
- Kai Kaapro
- Incorporated in
- Arizona
- HQ
- 323 West Davie Street, Raleigh, North Carolina 27601
- Auditor
- Neal, Bradsher & Taylor, PA
- Audited financials
- Franchisor revenue
- $320K
- vs $400K prior year
Overview
About
- CEO
- Kai Kaapro
- Headquarters
- NC
- Founded
- 2020
- FDD year
- 2025
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 69% below the typical recreation & entertainment franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $15K | $50K |
| Equipment, build-out, other | $75K | $111K |
| Total initial investment | $140K | $211K |
Source: TourScale 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $140K – $211K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $50K
- Top 40% of category vs category
- Franchise fee
- $30K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of net sales |
| Marketing / ad fund | 2.0% of net sales |
| Technology fee | $200 |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $0 – $3K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for TourScale is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one TourScale unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
The figure shown was the annual gross sales attributable to ONE 15-passenger Trolley Pub vehicle (printed p.48) — a per-asset figure, and for the cheapest of four concepts the system operates. A single franchise may run multiple vehicles across concepts, and no per-outlet average appears anywhere in Item 19.
Item 19 · by group
What the filing does disclose
Item 19 of this FDD reports performance in more than one group. We publish no single average for this brand; the groups the filing does disclose are listed below, quoted from its own Item 19 table.
Each row below is quoted from the FDD's own Item 19 table. Gross sales are not profit.
Item 19 detail
The figure shown was the annual gross sales attributable to ONE 15-passenger Trolley Pub vehicle (printed p.48) — a per-asset figure, and for the cheapest of four concepts the system operates. A single franchise may run multiple vehicles across concepts, and no per-outlet average appears anywhere in Item 19.
per seat
| Segment | Sample | Avg |
|---|---|---|
| Trolley Pub - Per Seat | — | $5K |
| Paddle Pub - Per Seat | — | $7K |
| Tiki Pub - Per Seat | — | $15K |
| Cruisin' Tikis - Per Seat | — | $17K |
per unit
| Segment | Sample | Avg |
|---|---|---|
| Trolley Pub - 15 Passenger | — | $74K |
| Paddle Pub - 16 Passenger | — | $108K |
| Paddle Pub - 26 Passenger | — | $175K |
| Tiki Pub - 6 Passenger | — | $92K |
| Tiki Pub - 25 Passenger | — | $401K |
| Cruisin' Tikis - 6 Passenger | — | $100K |
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Recreation & Entertainment median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System expanding at 108.3% CAGR over 3 years across 36 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Recreation & Entertainment medians
How TourScale Compares
Category median of published Recreation & Entertainment brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 7
- Last reporting year
- Closed
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.6%
- Company-owned
- 11
- Corporate units in the system
- % franchised
- 69%
- vs corporate-owned
- Net growth (3-yr)
- +108.3%
- Net unit change over 3 years
- 3-yr CAGR
- +108.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
12
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $172K
- Median loan
- $172K
- 50th percentile
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Two litigation matters on a small 36-unit system: a 2024 breach-of-promissory-note default judgment (~$284,000 awarded to franchisor) and a 2016 investor fraud/breach dispute settled in 2017. No bankruptcy or going-concern; financials not disclosed in profile. Turnover elevated at 12%.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
TPNC v. Prospect Collective LLC and Eli Braden (2024) - breach of promissory note, default judgment awarded to TPNC for ~$284,000 plus fees/interest. Lapham v. Trolley Pub of North Carolina et al (2016) - fraud/breach of contract dispute with investor, settled 2017.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Neal, Bradsher & Taylor, PA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 56 / 100 verdict
- 01HIGH2 litigation matters incl. fraud allegation and ~$284K judgment
- 02MINORSmall 36-unit system with 12% turnover
- 03MINORNo franchisor financials in profile
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 2 |
View Item 3 litigation summary
TPNC v. Prospect Collective LLC and Eli Braden (2024) - breach of promissory note, default judgment awarded to TPNC for ~$284,000 plus fees/interest. Lapham v. Trolley Pub of North Carolina et al (2016) - fraud/breach of contract dispute with investor, settled 2017.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 15 hrs
- Ongoing training
- Required
- Site selection
- Franchisee proposes, Franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Xola
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Xola
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TourScale franchise?
The total investment to open a TourScale franchise ranges from $140K – $211K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TourScale franchise owners earn?
Item 19 of the TourScale FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns TourScale?
TourScale is franchised by TourScale Franchising, LLC. Its parent company is TourScale, LLC. The ultimate parent named in the FDD is TourScale Enterprises, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the TourScale FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the TourScale FDD and qualifies whose outlets they describe.
What is TourScale's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TourScale (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many TourScale franchise locations are there?
As of their most recent FDD filing, TourScale has 36 total units in the United States, including 25 franchised units and 11 company-owned units. 7 new units were opened in the latest reporting year.
Is TourScale a good franchise to buy?
FranchiseVerdict rates TourScale as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.