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CruiseOne Franchise Cost & Fees

Date of Incorporation: 1992
Franchising Since: 1993
Headquarters: Ft. Lauderdale, Florida

Business Description: CruiseOne, Inc., the franchisor, offers franchises for establishing and operating businesses that sell cruises and certain other travel-related products and services according to a proprietary System. These travel-sales businesses operate under the CruiseOne® service mark. In addition to this proprietary mark, the System includes standards, other proprietary marks and information, and a specially designed marketing program.

Franchise Offer: CruiseOne, Inc. grants CruiseOne franchises to qualified franchisees and services those franchisees. Franchisees sell cruises in accordance with the terms and conditions established by the cruise lines and other travel providers. CruiseOne allocates its franchisees to one of three levels, which have different rights and obligations.

Financial Assistance: The franchisor may finance the initial franchise fee for qualified level 1 franchisees. Otherwise, it is not the franchisor’s practice or current intent to sell, assign, or discount to a third party all or a part of the financing arrangement.

Training and Assistance: Initial training is mandatory and must be attended and satisfactorily completed by the Manager not later than 60 days after the Effective Date of the Franchise Agreement. For level 1 and 2 franchisees, training is six days and held at training facilities in Broward County, Florida. For level 3 franchisees, initial training only includes online training for the manager. Alternatively, if the franchisee is a level 3 Franchisee, the franchisor may require he or she to attend the Mandatory Initial Training program described for level 1 and 2 franchisees; but, in such event, however, level 3 franchisees are solely responsible for all expenses incurred to have the manager attend Mandatory Initial Training. The franchisor does conduct advanced training programs, but they are optional for franchisees.

Territory: CruiseOne franchises are generally virtual businesses that are primarily operated from franchisees homes, but may be operated from an office, storefront, kiosk or other virtual place of business. Franchisees will not receive an exclusive territory.

Term of Agreement and Renewal: The length of the initial franchise term is five years. Franchisees do not have renewal rights. Granting the option to enter a successor franchise agreement is discretionary with the franchisor.

Obligations and Restrictions: The Manager is the Franchise Owner unless CruiseOne otherwise agrees in writing. The Manager must devote his or her best efforts to managing and operating the Franchised Business at all times it is open for business, the Franchised Business requires the Managers day-to-day supervision unless the franchisor agrees otherwise in writing, before the Manager, or any successor Manager, may manage the Franchised Business, he or she must complete Mandatory Initial Training. Franchisees may sell only goods and services that we approve and only from suppliers that the franchisor approves.

Estimated Number of Units: 970

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $9,800 for level 1 franchisee
$3,195 for level 2 franchisee
$495 for level 3 franchisee
Training Expenses $200 $250
Additional Signatories/Associates Training and Travel $0 $995
Office Equipment and Furniture $0 $1,500
Initial Office Supplies $50 $300
Computer Hardware/Software Equipment $0 $2,500
Insurance, Legal and Accounting $150 $1,000
Permits, Franchises, Bonds & Memberships $150 $650
Initial Promotion and Advertising $1,200 $2,400
Criminal and Civil Background Check $0 $30
Additional Funds (3 months initial phase for full-time franchisees) $1,000 $2,500
Financing Application Fee
$0 $75
Estimated Total $3,245 $20,850
Other Fees
Type of Fee Amount
Royalty Fee The Royalty Fee is a percentage of Annual Commissionable Sales (excluding those relating to travel insurance) not exceeding $22,500 (the Annual Royalty Fee Cap) calculated as follows:
i. 1.5% of Annual Commissionable Sales upon which CruiseOne receives a commission of 5% or less (excluding those relating to travel insurance);
ii. 2% of Annual Commissionable Sales upon which CruiseOne receives a commission of more than 5% but not greater than 10% (excluding those relating to travel insurance); and
iii.3% of Annual Commissionable Sales upon which CruiseOne receives a commission of more than 10% (excluding those relating to travel insurance).
Travel Insurance Royalty Fee 3% of all Annual Commissionable Gross Sales relating to travel insurance.
Administrative Service Fee $25 to $150 monthly.
Marketing Contribution 0.25% of Annual Commissionable Sales (not to exceed $1,000)
Minimum Annual Commissionable Sales Fee (Level 2 & Level 3 Franchises ONLY) If the franchisor changes the franchisee from a Level 3 to a Level 1 franchisee, $9,305. If the franchisor changes the franchisee from a Level 3 to Level 2 franchisee, $2,700. If the franchisor changes the franchisee from a Level 2 to a Level 1 franchisee, $6,605
Insufficient Funds Checks and Refused Credit Card Charge Fees An amount equal to (a) $29, plus (b) a fee equal to (i) the charges imposed on the franchisor by its bank in connection with a returned check, if applicable or(ii) any chargeback to which the franchisor is subject as a result of the franchisee’s customer's failing to pay any credit card charge.
Sales Associate and Replacement Manager Training Fee $495 (subject to change).
Transfer Fee (for transfer to wholly-owned entity) $3,195
Relocation $149
Late Payment Charge $25
Annual Sales Associate Fee $100 per year for each sales associate.
Errors and Omissions Insurance $150
Liquidated Damages Varies.
Indemnification Amount of damages and expenses incurred by the franchisor.
Enforcement Costs Amount of reasonable attorneys' fees, court costs and all expenses incurred in connection with the action or proceeding.

The above information has been taken from the FDD of CruiseOne. Year of FDD: 2015

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