Expedia Cruises Franchise Costs, Fees & FDD

Year Business Began: 1987

Franchising Since: 1987

Headquarters: Seattle, Washington

Country of Origin: Canada

Estimated Number of Units: 240

Franchise Description: CruiseShipCenters USA Inc. d/b/a Expedia Cruises is the franchisor. Expedia, Inc. is the franchisor’s sole owner and parent. The franchise offered is for the operation of a travel agency business that offers reservations for cruise ships, airlines, car rentals and hotels, as well as other related travel services and products.
Training Overview: Before franchisees begin operating their travel business, the franchisor will furnish training for up to two persons on the operation of a travel business to them (or if the franchisee is a business entity, to up to two of the owners). Trainees must complete five core programs delivered through a combination of e-learning and in-person classroom training to the franchisor’s satisfaction and before commencing operations of the travel business. The trainees will receive one week of online training through a correspondence course referred to as Consultant Certification, which is part of International Cruise Academy. Once the trainees have completed Consultant Certification, they will progress onto New Franchisee Training. This training is a combination of e-learning coupled with weekly one-on-one sessions with a designated trainer. Trainees will also complete the “Navigator’s Approach to Selling” and “Coaching for Performance” programs. Both programs consist of e-learning courses coupled with instructor-led sessions. Trainees also will receive five days of classroom training (Cruise Management Academy) at one of the franchisor’s training facilities, currently located in Vancouver, British Columbia, Canada. The franchisor may offer additional training, including periodic and refresher training courses, at such times and locations that it designates. All franchisees must attend the franchisor’s annual national conference and regional franchisee meetings.

Territory Granted: Franchisees will receive a designated territory (market area) in which they may establish and operate one center at one location. There is no minimum territory comprising a market area, however, the franchisor estimates a typical market area will have between 15,000 and 35,000 “targeted households” based upon data provided by a third-party company specializing in geographic-based information. A “targeted household” is one with an annual income of approximately greater than $125,000 (although the franchisor may adjust the dollar threshold to reflect changes in CPI, or for other reasons). The number of targeted households in a particular market area is based on a number of factors including local cost of living, shopping patterns, geographic aspects, market conditions and demographic criteria, including population density, average and median income and local competition. As long as franchisees are not in default under their Franchise Agreement, the franchisor will not open a travel business or allow any future franchisee the right to establish and operate an Expedia Cruises franchise within the market area. Franchisees still will face competition from the franchisor’s other franchisees, from outlets the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly and diligently perform their obligations under the Franchise Agreement, continuously exert their best efforts to promote and enhance their travel business and, not engage in any other business or activity that conflicts with their obligations to operate their travel business in compliance with the Franchise Agreement. Franchisees (or one of the controlling owners if a business entity) must assume responsibility for the day-to-day management and operation of their travel business and the supervision of their travel business personnel. Franchisees must offer and sell only the travel products and services provided by suppliers that the franchisor has approved. Franchisees may not offer any products or services that are not approved travel products and services or are provided by suppliers that the franchisor has specifically identified as not approved.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years beginning on the effective date of the Franchise Agreement. If franchisees are in good standing and meet other requirements, they may obtain an additional five-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing for the initial investment or any capital expenditures. The franchisor does not guaranty a franchisee’s notes, leases or obligations. Franchisees of the Expedia Cruises franchise system may be eligible for Small Business Administration (SBA) loan guarantees through their lender.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,000	$49,000
In-Person Training – The Franchisee’s Transportation and Accommodation	$1,500	$6,000
In-Person Training – Additional Trainee	$0	$495
In-Person Training – Additional Trainee Transportation and Accommodation	$0	$1,750
Premises Lease Security Deposit	$2,250	$7,500
Utilities and Telephone Deposit	$250	$1,000
Leasehold Improvements	$30,000	$80,000
Signage and Merchandising	$9,000	$14,000
Computers and Software	$3,000	$6,000
Office Equipment and Supplies	$2,000	$4,500
Office Furniture and Furnishings	$15,000	$22,000
Insurance	$800	$2,000
Professional Fees	$500	$3,500
Business Licenses and Permits	$500	$1,500
Additional Funds – Working Capital for the first 18-36 Months	$35,700	$59,500
ESTIMATED TOTAL	$149,500	$258,745

 
Other Fees

Type of Fee	Amount
Service Fee (Royalty)	9% of gross revenues paid to the franchisee by suppliers.
Management Information Systems (MIS) Fee	2% of gross revenues paid to franchisees by suppliers up to the specified annual threshold level.
Marketing Fee	4% of gross revenues paid to franchisees by suppliers up to the specified annual threshold level.
In-Person Training: Cruise Management Academy (CMA) – Additional Trainee	$495
Additional Term Franchise Fee	$5,000
Transfer Fee	$10,000 (or if the transferee is an existing franchisee operating a different travel business, the required transfer fee will be reduced by 50%).
Document Administration Fee	The greater of $295 or the franchisor’s actual expenses incurred.
Site Relocation Fee	The greater of $995 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.
Overdue Center Opening Fee	$500 per month.
Costs and Attorneys’ Fees	Will vary under circumstances.

The above information has been compiled from the FDD of Expedia Cruises. Year of FDD: 2025.
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