Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
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  • Orange Leaf Frozen Yogurt
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  • The UPS Store
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  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

FDD Talk 2013: Pro Forma Notes and Assumptions for Expedia CruiseShipCenters Businesses (2013 FDD)

by Franchise Chatter on December 15, 2013

in Franchise Earnings, Travel Franchise



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Highlights of Expedia CruiseShipCenters’ Item 19 Financial Performance Representations (2013 FDD) – Part 2

  • Number of Franchises Attaining Sailed Revenue. Franchises are only included once, in the column presenting the highest Sailed Revenue attained. There were 6 franchises, 4 of which opened in 2012, which have not yet achieved the revenue level shown in Revenue Level 1.
  • CruiseOne Franchise Photo by quinetSailed Revenue. Bookings required to achieve Sailed Revenue, based upon current average booking per invoice of $1,925, is as follows:
  • Sailed Revenue (commissionable fare):  $1,000,000
  • Bookings Per Year:  520
  • Bookings Per Month:  44
  • Sailed Revenue (commissionable fare):  $2,000,000
  • Bookings Per Year:  1,039
  • Bookings Per Month:  87
  • Sailed Revenue (commissionable fare):  $3,000,000
  • Bookings Per Year:  1,559
  • Bookings Per Month:  130
  • Sailed Revenue (commissionable fare):  $4,000,000
  • Bookings Per Year:  2,078
  • Bookings Per Month:  174
  • Sailed Revenue (commissionable fare):  $5,000,000
  • Bookings Per Year:  2,598
  • Bookings Per Month:  217
  • Average Commission Yield. In projecting revenues, the franchisor assumed you will receive average commissions of 13% of the commissionable fare from Approved Suppliers on sales revenue you generate from bookings on deposit (also referred to as “Gross Revenues”).
  • Service Fees. Service fees payable to the franchisor at a rate of 9% of Gross Revenues.
  • Commissions. In projecting commission expenses, the franchisor made the following assumptions regarding the commissions you will pay your owner and your sales agents.
  • Commissions – Center-Based Agents. The franchisor assumed that Center-Based Agents, those working in your Center, including your owner sales, will sell 70% of your Gross Revenues and that you will pay these sales agents 34% of the Gross Revenues on specific bookings they sold. You will retain the remaining 66% (prior to payment of the 9% service fee noted above).
  • The amount of the Gross Revenues that you retain in full will depend upon the proportion of your own sales to total sales of agents working out of your Center. For example, if you assumed that your owner sales were 50% of the total sales of agents working out of your Center, you would reduce the illustrated commission expense by 50% and increase gross profit accordingly.


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