Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
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FDD Talk 2013: Projected Annual Revenues, Selling Expenses, and Fixed Costs Payable to Franchisor for Expedia CruiseShipCenters Businesses (2013 FDD)

by Franchise Chatter on December 14, 2013

in Franchise Earnings, Travel Franchise

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Highlights of Expedia CruiseShipCenters’ Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • The franchise offered is for a travel agency business that offers reservations for cruise ships, airlines, car rentals, and hotels, as well as other related travel services and products.
  • The total estimated initial investment required to begin operation of an Expedia CruiseShipCenters Franchised Travel Business ranges from $102,600 to $179,995, including $29,000 that must be paid to the franchisor as a non-refundable initial fee.

Explanatory Notes

  • CruiseOne Franchise Photo by NABS39The following table illustrates projected annual revenues, the cost of revenues (selling expenses payable to the franchisor and to your consultants) and fixed costs payable to the franchisor for a Franchised Travel Business after the first year of operation.
  • The numbers represent potential amounts at the various sales levels attained. Reaching these sales levels depends entirely on your ability to implement the company’s marketing and operational systems, to develop a cruise-focused sales team, and to make connections in your community.
  • Also, these are not time-based projections but, rather, are a comparison of gross profit versus sales to illustrate the scalability of the franchise system.
  • Operating costs will vary depending on a number of factors, including the economic conditions and costs of real estate and services in your community, as well as your preferences and abilities as an operator.
  • The following chart is intended to support your determination of possible financial performance as you pass the breakeven point of your business, which the franchisor does not expect you to reach during the first year of operation of the Travel Business.
  • These projection levels are based on the 2012 operations of Travel Business Franchises as entered into the CruiseDesk system by franchisees.
  • The assumptions as to the average booking value and, consequently, the number of bookings needed to achieve these revenue levels are based on historical data. (Please check back tomorrow for Part 2 where we list down the notes and assumptions for the table below.)
  • Some franchises have achieved these revenue levels but there is no assurance you will do as well. In addition, the franchisor has not adjusted its projections to address or incorporate data relative to Travel Businesses operating in Small Markets.
  • The projections are intended ONLY to demonstrate possible scenarios and are in no way a guarantee. Your performance and the performance of other individual Expedia CruiseShipCenters Travel Businesses will vary.

Revenue Level 1

  • Number of Centers Attaining This Revenue Level in 2012:  3


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