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Want To Know The Real Expedia Cruises Franchise Cost?
Travel companies will continue to flourish as long as there are globetrotters in every nook and cranny. This industry is one of the most recession-resistant industries that proves to be an excellent business opportunity, especially cruise companies. If you’re looking for a promising venture, then Expedia Cruises is worth looking into. Read on to know more about the training, conditions, financing, and Expedia Cruises franchise cost.
Company Overview
Expedia Cruises has proven itself in the cruise and travel niche. At this time, the company is in the “Top 50 Franchise” in Entrepreneur Magazine’s Franchise 500 and Franchise Business Review. Since launching in 1987, the company’s sales consistently increased 20 percent on average year after year for the last 20 years.
Expedia Cruises started in Vancouver, BC, as CruiseShipCenters. And for 30 years, they adapted to the changing trends in cruise ship travels. The company knows it’s more complex to book cruise trips, making it easy for their customers. Until now, Expedia Cruises is considered as one of the leading cruise companies in North America.
In 2020, the company also had the most significant change in 30 years — rebranding. They changed their name from CruiseShipCenters to Expedia Cruises. The company’s tagline is pretty much all-encompassing, “Air, Land, and Sea Vacations.” Furthermore, the company says the rebrand is a more impactful way of showing their customers that they have travel packages for every traveler type.
Franchise Training
Expedia Cruises is the franchisor, a subsidiary of Expedia, Inc. Getting an Expedia Cruises franchise pertains to cruise ship bookings, plane bookings, car rentals, accommodation, and other related products and services.
Before we get to the Expedia Cruises franchise cost, let’s cover the necessary training programs. Here’s a breakdown of the training details:
- The franchisor will require up to two people to attend the training.
- Before operating the Expedia Cruises store, the franchisee must attend and pass the training according to the franchisor’s satisfaction.
- The franchisee must attend a Consultant Certification training, which entails a week of online courses. This is a requirement from the International Cruise Academy.
- The franchisee must also undergo five days of training in Vancouver, BC, at one of the training facilities.
- The franchisee may be required to undergo additional training and refresher courses, if necessary.
- The franchisor obligates all franchisees to attend annual conferences and regional meetings.
Franchise Territory
The franchisor will offer a Designated Territory to all franchisees, where they can only operate one store in one chosen location. Here are the details of the territory granted:
- The Designated Territory or Market Area should have a minimum of 15,000 households and up to 35,000 households, which is referred to as the “Targeted Household”
- Each “Targeted Household” should have more than $100,000 yearly income
- The Targeted Households should be based on different components such as geographic aspects, cost of living, market situations, population density, and more
- The franchisor promises not to allow other franchisees to open another Expedia Cruises franchise within the Designated Territory as long as the franchisee is still operating under their Franchise Agreement
Franchise Obligations and Conditions
The franchisee must fully manage their Expedia Cruises store under the foundation of faith, honesty, and diligence. Moreover, they must put in all the efforts to improve business operations at all times. The franchisee shouldn’t also engage in any other business activities or ventures that directly conflict with their Expedia Cruises franchise.
Moreover, the franchisees must supervise the daily operations of the business and its personnel.
Finally, the franchisee must not offer and sell products and services that aren’t approved by the franchisor. At this time, the franchisor’s approved suppliers must only provide these products and services.
Franchise Term and Renewal
The initial franchise term for operating an Expedia Cruises business is 10 years. However, the franchisee may renew another 5-year term if they remain in good standing and adhere to requirements from the Franchise Agreement.
Franchise Financial Aid
Expedia Cruises doesn’t guarantee a franchisee’s leases, notes, and obligations. The franchisor will also not offer financing aid for the Expedia Cruises franchise cost, initial investment costs, or any other capital expenses.
However, the franchisor will only provide financing options and companies that are approved by Expedia Cruises’ Commission Advance Program (CAP).
Did You Know?
Here are some fun facts you didn’t know about Expedia Cruises:
- Expedia Cruises knows how complicated booking cruises is. So their interface only requires less than 12 finger taps to book a trip.
- So far, there are over 32 million Expedia Rewards members in around 32 countries.
- Expedia Cruises was recognized by the Canadian Franchise Association’s Hall of Fame for its franchising excellence
Expedia Cruises Franchise Cost
Your Investment:
Now it’s time to get down to the Expedia Cruises franchise cost. Here’s the breakdown of everything:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 |
| In-person Training – The Franchisee’s Transportation and Accommodation | $1,200 | $6,000 |
| In-person Training – Additional Trainee | $0 | $495 |
| Additional Trainee Transportation and Accommodation | $0 | $1,750 |
| Premises Lease Security Deposit | $2,500 | $8,000 |
| Utilities and Telephone Deposit | $250 | $900 |
| Leasehold Improvements | $30,000 | $78,000 |
| Signage (interior and exterior) | $7,500 | $12,000 |
| Computers and Software | $3,500 | $7,000 |
| Office Equipment and Supplies | $2,100 | $4,500 |
| Office Furniture and Furnishings | $12,500 | $19,000 |
| Insurance | $800 | $2,000 |
| Professional Fees | $500 | $3,500 |
| Business Licenses and Permits | $500 | $1,500 |
| Additional Funds – Working Capital for the first 18-24 Months | $69,600 | $116,000 |
| ESTIMATED TOTAL | $169,950 | $299,645 |
Other Costs:
| Type of Fee | Amount |
|---|---|
| Service Fee | 9% of gross revenues paid to the franchisee by suppliers. |
| Management Information Systems (MIS) Fee | $300 per month. |
| Marketing Fee | $600 per month. |
| In-person Training: Cruise Management Academy (CMA) – Additional Trainee | $495 |
| Additional Term Franchise Fee | $5,000 |
| Transfer Fee | $10,000 |
| Document Administration Fee | The greater of $295 or the franchisor’s actual expenses incurred. |
| Site Relocation Fee | The greater of $495 or the franchisor’s actual expenses incurred in reviewing the franchisee’s relocation site and any document preparation or modification. |
| Audit Fee | Cost of inspection or audit and related expenses. |
| Interest | The lesser of 15% per annum or the highest contract rate of interest permitted by applicable law. |
| Insufficient Funds Fee | $50 per occurrence. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
If you want to know about franchising an Expedia Cruises business, visit their website for more information. Plus, stick around in Franchise How for other franchise-related resources!