Bottom line
- Total investment $106K – $683K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $74K/year (median $71K).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 TourScale unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 TourScale units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$119K
on $593K purchase
Total debt
$475K
SBA $0.3M + senior + seller note
Overview
About
TourScale franchisees likely operate tour booking, destination management, or travel planning services, managing customer itineraries, vendor relationships, and logistics. Day-to-day activities include client consultation, tour coordination, marketing, and revenue management, typically serving leisure or corporate travel segments.
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 · 16 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
Early-stage tour/travel franchise with opaque profitability, active litigation, and going concern status presents elevated risk despite growth metrics.
Score breakdown · what drove the 57 / 100 rating
- 01MEDNo average net income disclosed despite $74K avg revenue — inability or unwillingness to share profitability data is a major transparency red flag
- 02MINORWide investment range ($105K–$682K) suggests inconsistent unit economics or poorly defined startup costs
- 03HIGHActive litigation (breach of contract + IP dispute) indicates governance and IP protection weaknesses at corporate level
- 04HIGHGoing concern statement signals potential financial distress at franchisor despite 25% YoY unit growth
- 05MED36 total units is a small, early-stage system with limited track record; growth rate alone does not offset other risks
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
42 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TourScale · FDD (2025) PDF