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Earnings Claims of Top Franchises Revealed

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FDD Talk: The CruiseOne Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on January 18, 2016

in FDD Talk 2017: Miscellaneous Franchises, Franchise Earnings, Travel Franchise



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CruiseOne Franchise Photo by NABS39

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the CruiseOne franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a CruiseOne franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of CruiseOne’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 annual commission revenues and total selling expenses payable to the franchisor for CruiseOne outlets whose franchised businesses were in operation as of December 31, 2014, had been in uninterrupted operation for at least 12 months, and had annual commissionable sales of greater than $1,000

Section I – Background Information

CruiseOne was founded in 1989 and began franchising in 1993. It calls itself the leading travel franchise in the nation. It is part of World Travel Holdings, the world’s largest cruise and leisure travel company. Its franchisees often work from home, selling cruises and other vacation packages.

Total franchise units have grown steadily over the past five years from 737 to the current 1,011, with locations in all 50 states and Mexico. The chain maintains an intense focus on outstanding customer service.

Here’s how CruiseOne keeps its tidal wave of momentum moving in the right direction:

Rapid Growth

The Great Recession hit the travel industry especially hard, and CruiseOne was no exception, but post-recession growth has been truly impressive, from just more than 600 locations in 2010 to celebrating its 1,000th location in June 2015.

New Tagline Becomes New Brand

Back in 2011 CruiseOne started using the slogan Dream Vacations Start Here, and now all CruiseOne franchisees can change their branding to match the slogan. CruiseOne officially launches the new brand in the second quarter of 2016.

A Powerhouse Chain

CruiseOne has received top-ranking “partner-of-the-year” awards from all the major cruise lines, including Norwegian Cruise Line, Royal Caribbean International, Celebrity Cruises, and Carnival Cruise Lines.

The Price is Right

CruiseOne franchisees are able to offer their customers the lowest possible pricing on vacations because of the company’s size and standing. It even offers a 100% “Best Price Guarantee.” For customers who find a lower advertised cruise rate (for which they qualify and which is available for purchase) within 24 hours of booking a cruise, the company will honor that better price.

Satisfaction Guaranteed

The chain also offers a 100% satisfaction guarantee. Customers dissatisfied with their cruise can call the company from the ship (within 24 hours of departure) to explain any problems. If those problems can’t be resolved, customers receive a full refund of the unused portion of the trip, as well as the cost to fly them back to the port of origin.

The Personal Touch

In the digital era where more and more people are making their own travel arrangements directly with carriers, there is still a surprising level of demand among leisure travelers for the assistance of a professional travel agent.

Diversity

Veterans and active-duty spouses make up 30% of this military-friendly chain, and the number of millennial owners has increased by nearly 20% in the last four years.

Section II – Estimated Costs

  • Please click here for detailed estimates of CruiseOne franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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