We are a Vermont corporation, incorporated on October 18, 2005, under the name Resort Maps Acquisition Corporation for the purpose of purchasing the assets of our predecessor Murphy Holdings, Inc. (formerly Resort Maps Franchise, Inc.) On October 31, 2005, we purchased substantially all of the assets of Murphy Holdings, Inc. On November 2, 2005, we filed a Certificate of Amendment with the Vermont Secretary of State changing our name to Resort Maps Franchise, Inc. On October 19, 2011 RMFI acquired substantially all the assets of Starr Map Company, LLC, and Discovery Map International, LLC, both of which were headquartered at 918 4th Street, La Conner, WA, 98221-1500 Discovery Map International, LLC has ceased operation and is closed The current address of Starr Map Company, LLC is 81 Canal Lane, Benton, WA, 98320 These companies were predecessors m interest of certain Franchise Agreements and intellectual property currently employed in the Discovery Map System On November 1, 201 f Resort Maps Franchise, Inc. changed its name to Discovery Map International, Inc. Our principal business address is 5197 Mam Street, Suite 8, P O Box 726, Waitsfield, VT 05673 We conduct business under our corporate name, under the trade name and service mark “DISCOVERY MAP®”, the trade name DISCOVERY MAPS AND GUIDES, the service mark “DISCOVERY MAPS &, GUIDES®”, URLs, domain names, website addresses, email addresses, digital cellular addresses, wireless web addresses and the like (“renames”) and associated logos, designs, symbols and trade dress (collectively, the “Marks”) In the DISCOVERY MAP® System each map is defined as a Franchised Business We franchise the right to operate a DISCOVERY MAP® Franchised Business which offers a multi-media alternative advertising program m the form of illustrated tourist and visitor information maps supported by advertising space purchased by restaurants, resorts, retail stores, local attractions and other tourist-based businesses m the community and to use our SYSTEM All DISCOVERY MAP® Franchised Businesses are required by us to be consistent in general appearance and professional profile There is one exception In the State of Washington, you will operate a DISCOVERY MAP® Franchised Business under solely the name DESTINATION MAP Our predecessor began offering RESORT MAPS franchises m 1993 As of the end of our last fiscal year we had 136 franchises
We do not have a parent Our predecessor, Murphy Holdings, Inc. (formerly Resort Maps Franchise, Inc.), is a Vermont corporation, incorporated on May 13, 1993, with a principal business address at 1440 Ripley Road, Waterbury Center, VT 05677 Murphy Holdings, Inc. , was established for the purpose of offering, establishing and managing Resort Maps franchises Murphy Holdings, Inc., offered, sold and managed franchises from August 1, 1993, and ceased all franchise activity as of the date of the transfer of its assets to us on October 31, 2005 On that date Murphy Holdings, Inc. , filed a Certificate of Amendment with the Vermont Secretary of State changing its name from Resort Maps Franchise, Inc. , to Murphy Holdings, Inc. We operate two DISCOVERY MAP® Franchised Businesses, Key West, FL and South Middlesex County, CT Except as provided above, we have no parents required to be disclosed m Item 1 Our affiliates have not offered franchises m this or any other line of business We have not offered franchises in any other Line of business Except as disclosed in the Disclosure Document, neither' we nor our affiliates nor any officers currently operate any other type of businesses
In the DISCOVERY MAP® System each map is defined as a Franchised Business We franchise the right to operate a DISCOVERY MAP® Franchised Business which offers a multi-media alternative advertising program m the form of illustrated tourist and visitor information maps supported by advertising space purchased by restaurants, resorts, retail stores, local attractions and other tourist-based businesses m the community and to use our SYSTEM All DISCOVERY MAP® Franchised Businesses are required by us to be consistent in general appearance and professional profile There is one exception In the State of Washington, you will operate a DISCOVERY MAP® Franchised Business under solely the name DESTINATION MAP Our predecessor began offering RESORT MAPS franchises m 1993
All franchisees pay an Initial Franchise Fee of $25,000 You must pay the Initial Franchise Fee in a lump sum when you sign the franchise agreement In consideration for the Initial Franchise Fee, we grant you a franchise to operate a DISCOVERY MAP® Franchised Business for one map (as outlined m the Disclosure Document - Section 12 Territory) and provide you and certain of your personnel with initial training You pay us or our affiliates no other fees or payments for services or goods before your business opens If available, you may request the purchase of an additional franchise for a lump sum franchise fee equal to 75% of the then-current initial franchise fee per map franchise We reserve the right, m our sole discretion, to approve or deny your request The Initial Franchise Fee is deemed fully earned upon payment and no refunds will be made
DISCOVERY MAP INTERNATIONAL, INC will finance a portion of the Initial Franchise Fee for applicants, which it determines m its sole discretion are qualified based on the following terms Franchisee DISCOVERY MAP INTERNATIONAL, INC or an affiliated company Up to a maximum of 67% of the Initial Franchise Fee Determined based on Borrower's credit worthiness and prevailing market conditions Up to a maximum of 3 years Pledge of the Franchise Agreement Personal Guarantee required by Franchisee's principal owner Financing may be prepaid m whole or m part at any time without penalty The Lender may declare all remaining outstanding balance due and payable immediately. The Borrower agrees to pay all court costs and attorney's fees incurred in collection of the debt, DISCOVERY MAP INTERNATIONAL, INC may terminate the franchise, and DISCOVERY MAP INTERNATIONAL, INC may invoke the cross-default clause in the Franchise Agreement The loan agreement also requires Franchisee to waive defenses and bars Franchisees from asserting a defense against the Franchisor Borrower Lender Amount Interest Rate Maximum Term Security Guarantor Prepayment Default Remedies 2019© Discovery Map International Inc. Franchise Disclosure Document 1231 18 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 Neither the franchisor nor any affiliate receive any consideration for placing financing with the lender
The FTC Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information and the information is included m the disclosure document Financial performance information that differs from that included m Item 19 may be given only if (1) a franchisor provides the actual records of an existing outlet that you are considering buying, or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about I possible performance at a particular location or under particular circumstances We are reporting on all franchise businesses that completed a full sales cycle and published a map m the fiscal year ending on September 30, 2018, although it should be kept in mind that maturation of DISCOVERY MAP INTERNATIONAL, INC , franchised businesses can take up to two years or more Of the franchise businesses reported on in this item, 106 were mature All franchised units operate m a defined Area and typically publish once Map per year Each franchised business generates gross sales by selling advertising space to local businesses whose ads border the Map maps are two-sided The vast majority of the maps we publish are either 17-mch by 22-mch or 17-inch by 25-inch in size We do continue to publish three 17-mch by 11-mch maps but do not, m the normal course, offer franchises for new maps m this size Therefore these three maps are excluded from the analysis below There are no other key demographic elements necessary m defining an Area As of September 2017 and September 2018, there were respectively 132 and 136 franchises m business Based upon the performance of the franchises that published a map m the fiscal year ending on September 30, 2018 and completed the selling cycle within the reported fiscal year, we are providing die following disclosure of the actual Gross Sales which includes both unrelated and affiliate-owned franchises