Expedia
CruiseShipCenters is an industry leader in the sales of cruise vacations. With
more than 110 retail locations and a team of over 2,000 professionally-trained
Cruise Consultants, Expedia CruiseShipCenters Franchise Partners enjoy a
rewarding business and a great lifestyle. Proven, turn-key systems and support are
provided, meaning no travel industry experience is required for a franchisee to
launch their business. Franchise Partners benefit from the competitive
advantage of the #1 travel brand, massive buying power, award-winning marketing
and industry-leading technology that has made Expedia CruiseShipCenters a top
seller with every major cruise line since 1987.
The cruise
market is vibrant and continues to grow, and research shows that over the next
three years, 51 million North Americans intend to take a cruise vacation. In
addition to numerous travel industry awards, Expedia CruiseShipCenters has been
recognized for its leadership in the franchise industry, winning the Canadian
Franchise Award of Excellence in both 2006 and 2007. Expedia CruiseShipCenters
retail franchise locations from coast to coast are the anchor point for
marketing and sales activities. The typical location is home to both retail and
home-based Cruise & Travel Consultants. Franchise Partners receive the
benefits of running a self-owned business, backed by over 20 years of
experience and the power of the most recognized brand in travel.
Operating Units
12/31/2006
12/31/2007
12/31/2008
Franchised
92
101
103
% Change
--
9.8%
2.0%
Company-Owned
1
2
2
% Change
--
100.0%
0.0%
Total
93
103
105
% Change
--
10.8%
1.9%
Franchised as % of
Total
98.92%
99.06%
98.10%
Investment
Required
The
fee for an Expedia CruiseShipCenters Start-up franchise is $25,000.The fee is $18,000 for a Conversion franchise
and $7,500 for an Add-on franchise.
Expedia
CruiseShipCenters provides the following range of investments required to open
your initial franchise. The range assumes that all items are paid for in cash.
To the extent that you choose to finance any of these expense items, your
front-end investment could be substantially reduced. The following figures refer to a Start-up
Franchise.
Item
Established Low
Range
Established High
Range
Franchise
Fee
$25,000
$25,000
Training
Expenses (1 person)
$1,000
$2,000
Training
Fees and Expenses (additional trainee)
$0
$495
Lease
and Security Deposit
$8,000
$12,000
Utilities,
Telephone and Internet Service
$1,500
$2,000
Office
Furniture, Equipment and Supplies
$7,500
$10,000
Leasehold
Improvements
$12,000
$40,000
Computer
Hardware and Software
$7,000
$10,000
Insurance
$2,300
$4,000
Professional
Fees
$1,000
$3,000
Business
License and/or Permits
$100
$500
Additional
Funds – Working Capital (12 months)
$35,000
$45,000
Total
Investment
$100,400
$155,995
On-going
Expenses
Expedia
CruiseShipCenters Start-up and Conversion franchisees pay a service fee equal
to the greater of 9% of gross revenues or $600 per month ($300 for Add-on
franchises), a management information systems fee equal to $285 per month ($150
for Add-on franchises) and a marketing fee equal to $570 per month ($285 for
Add-on franchises)
What You Get—Training
and Support
The initial trainee receives one week of basic training through self-directed
studies, and is provided with the supplemental manual and DVDs for the
training. Four days of in-person training is provided on-site at the head
office of Expedia CruiseShipCenters International in Vancouver, BC. Basic
training is offered on demand and on-site training is offered monthly in
Vancouver. Expedia CruiseShipCenters may also offer additional training through
periodic refresher courses or internet-based training programs. A local
Franchise Development Manager works with Franchise Partners on a regular basis
with marketing, training and sales support.
Expedia
CruiseShipCenters provides assistance with site selection and lease negotiation,
and advises franchisees on obtaining a license or registration to sell Approved
Travel products and Services. Expedia CruiseShipCenters provides franchisees
with an initial supply of promotional materials as well as access to the
CruiseDesk system and the operations manual. A direct interface with the cruise
line system provides franchisees with a website that features over 10,000
departures in multiple currencies and in-depth content for a variety of travel
planning tools. Franchisees receive the advantage of Expedia CruiseShipCenters’
one-to-one marketing, in which each retail location and every individual Cruise
Consultant has a personalized version of their leading edge website. Expedia
CruiseShipCenters also furnishes franchise owners with assistance in advertising
and marketing programs and administrative, bookkeeping, and accounting
procedures.
Territory
Expedia
CruiseShipCenters grants exclusive territories to Start-up and Conversion franchisees.Add-on franchisees do not receive an
exclusive territory.
