Verified — real FDD extraction
SBA-eligible · directory code S5156 since 2020
THE SCOUT GUIDE
Other · independent · est. —
The Scout Guide is a curated local business directory and lifestyle brand, publishing a polished print guide and online listings that feature selected local merchants, services, and creatives in a city. The franchisee builds the local edition by recruiting and selling memberships to featured businesses. The work is largely advertising sales, photography coordination, and community networking.
THE SCOUT GUIDE net unit count grew +27.0% from 2022–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The standout in the record: the system is growing.
Exit rate · latest year
10.6%
fiscal 2025, per Item 20
Cost to open
$132K–$317K
Item 7 total investment range
SBA loan defaults
Too few resolved
3 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2022–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 10 of 94 franchised outlets left the system — a 10.6% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Outlets at start | 67 | 74 | 89 | 95 |
| Opened | 8 | 20 | 13 | 9 |
| Transfers | 6 | 5 | 10 | 10 |
| Terminations | 0 | 1 | 5 | 7 |
| Non-renewals | 1 | 2 | 2 | 3 |
| Reacquired by franchisor | 0 | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 2 | 0 | 0 |
| Outlets at end | 74 | 89 | 95 | 94 |
| Net change | +7 | +15 | +6 | -1 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 3 SBA-backed loans to THE SCOUT GUIDE franchisees since 2022. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
0 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$39,333
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
—
distinct banks lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO THE SCOUT GUIDE BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $50K franchise fee (Item 5) and a total investment of $132K–$317K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$132K–$317K
all-in investment range
Franchise fee (Item 5)
$50K
upfront, one-time
Royalty (Item 6)
10%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$100K
10% of sales, before profit
Over a 10-yr term
$1M
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for THE SCOUT GUIDE with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for THE SCOUT GUIDE. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing THE SCOUT GUIDE's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →THE SCOUT GUIDE franchise questions, answered from the filings
What percentage of THE SCOUT GUIDE franchises closed last year?
In THE SCOUT GUIDE's latest FDD Item 20 (fiscal 2025), 10 of 94 franchised outlets left the system — an annualized exit rate of 10.6%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a THE SCOUT GUIDE franchise cost?
Per THE SCOUT GUIDE's 2026 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $132K–$317K (Item 7).
What royalty does THE SCOUT GUIDE charge?
THE SCOUT GUIDE charges an ongoing royalty of 10.0% of gross sales, per Item 6 of its 2026 FDD.
Does THE SCOUT GUIDE disclose earnings (Item 19)?
No — THE SCOUT GUIDE's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.