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Cruise Planners Franchise Costs & Fees

Date of Incorporation: 1994
Franchising Since: 1999
Headquarters: Coral Springs, Florida

Business Description: CP Franchising, LLC is the franchisor. Cruise Planners businesses are individually owned and operated travel agent businesses.

Franchise Offer: The franchise is for the establishment and operation of an individually owned and operated travel agent business under the Cruise Planners trade name and business system.

Financial Assistance: The franchisor may finance the initial franchise fee for qualified applicants for the Inexperienced Travel Agent category. Except as disclosed, the franchisor does not offer financing that requires franchisees to waive notice, confess judgment, or waive a defense against the franchisor or the lender, although franchisees may lose your defenses against the franchisor and others in a collection action on a note that is sold or discounted. The franchisor does not arrange financing from other sources. Although the franchisor may assign the Note, commercial paper from franchisees has not been, and is not, sold or assigned to anyone, and the franchisor have no plans to do so. The franchisor does not guarantee franchisees’ obligation to third parties.

Training and Assistance: Training consists of 42 hours of classroom training. The materials used in training include workbooks, reference and other “hands-on” materials, including PowerPoint presentations and handouts. The individual owner of the franchise who is new to the System and inexperienced as a travel agent is expected to attend training at no additional charge from the franchisor. However, with respect to airfare, the franchisor will subsidize up to $500 after training is completed towards the lowest coach fare for one airline ticket purchased at least 14 days prior to travel date only if franchisees have paid the initial franchise fee of $10,495 for new travel agents. Franchisees pay for any additional expenses and for other persons they wish the franchisor to train for them.

Territory: Franchisees will not receive an exclusive territory although the franchisor reserves the right to close out select markets at its sole discretion. Franchisees may face competition from other franchisees, from an outlet the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

Term of Agreement and Renewal: The length of the initial franchise term is 3 years. Renewal of the term is for additional 3-year periods, if requirements are met.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly and diligently perform their obligations under the Franchise Agreement and continuously exert their best efforts to promote and enhance the Cruise Planners business for the full term of the Franchise Agreement. The franchisor generally offers Cruise Planners franchises only to individuals. If franchisees are or become a Business Entity the franchisor may limit the number of owners and/or require that the Business Entity designate a spokesperson to communicate with the franchisor. If franchisees are an Inexperienced Travel Agent or a Minor Experienced Travel Agent, the franchisor may terminate the Franchise Agreement if franchisees do not maintain annual Gross Commissionable Revenues of at least $25,000 at the end of the third year of the term of the Franchise Agreement and each year thereafter, including successor franchise agreements with the franchisor. If franchisees are a Major Experienced Travel Agent and fail to have $100,000 of Gross Commissionable Revenues at the end of the first year, the franchisor may terminate the Franchise Agreement. Franchisees must operate their Cruise Planners business in strict conformity with the Franchise Agreement and with all required methods, procedures, policies, standards, and specifications, as set out in the operating and training materials, electronic media and in writing by the franchisor.

Estimated Number of Units: 2,145

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $495 $10,495
Application and Processing Fee for Financing $0 $200
Rent – 3 Months $0 $3,000
Office Equipment, Furniture and Fixtures $500 $2,500
Start-Up Marketing $500 $1,500
Technology Services Fee – 3 Months $0 $177
Professional Fees $100 $500
Initial Training Fee $0 $695
Initial Training Expenses $0 $150
Licenses and Permits $150 $650
Miscellaneous Opening Costs $100 $500
Additional Funds (first 3 months) $250 $2,500
ESTIMATED TOTAL $2,095 $22,867
Other Fees
Type of Fee Amount
Royalty 1% - 3% of Gross Commissionable Revenues depending on the commissionable rates paid by the travel suppler.
Annual Maintenance Fee $0 to $2,000 per year – amount varies depending on the franchisee’s initial franchise fee, Gross Commissionable Revenues and the number of years he/she has been a franchisee.
Annual E&O Insurance Premium Currently $165 per person for franchisees, any co-owner and their associates.
Technology Services Fee Currently $59 per month.
Franchise Transfer Fee $10,495 maximum.
Returned Check Fee $50 per check.
Relocation/Ownership Fee Currently $195
Administrative Fee for an Additional Associate $50 one-time charge for each associate.
Background Check Fee for an Additional Owner or Associate $50 one-time charge for each additional owner or associate.
Associate Training Fees Currently $695
Additional Training Fee Currently $495 to $695
Indemnification Will vary under circumstances.
Costs and Attorneys’ Fees Will vary under circumstances.
Access Fee Currently $60 per person per year.
Domain Name Change Fee Currently $75, plus $20 per year, if the domain name is redirected.
Dedicated Business Telephone Number Change Fee Currently $195

The above information has been taken from the FDD of Cruise Planners. Year of FDD: 2016

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