Earnings Claims of Top Franchises Revealed

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, 2017

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



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CruiseOne Franchise Photo by NABS39

In this FDD Talk 2016 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 2016 FDD
  • Section III – Presentation and analysis of CruiseOne’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 annual commission revenues and total selling expenses payable to the franchisor for CruiseOne outlets whose franchised businesses were in operation as of December 31, 2015, had been in uninterrupted operation for at least 12 months, and had annual commissionable sales of greater than $1,000

Section I – Background Information

Over 20 Years in Business

CruiseOne, the leading travel retailer in the U.S., was founded in 1991 and started franchising a year later. It currently has over 1,000 locations across the United States. All CruiseOne businesses are independently owned and operated.

The company is part of World Travel Holdings, which also owns cheaprentalcar.com, Cruises Inc., Villas by Linda Smith, and LuxuryCruise.com.

The travel company’s vacation programs range from family reunions at sea, to honeymoon cruises, and corporate conferences.

Award-Winning Franchise

CruiseOne has won numerous industry accolades through the years. In addition to being named Partner of the Year by Royal Caribbean International, Celebrity Cruises, and Carnival Cruise Lines, CruiseOne has won the following awards:

  • Oceania Cruise Connoisseur Club
  • Crystal Cruises Top Producer
  • Holland America Lines Centurion Award
  • Regent Seven Seas Council Award – Top Producer
  • Silversea Cruises Alliance Award
  • Uniworld Top Producer Award
  • Viking River Cruise Platinum Circle
  • Apple Vacations Premier Award
  • Funjet Vacations – 500 Club Award
  • Globus Premier Agency Partner
  • Sandals – Best of the Best Award

This year, CruiseOne won several Magellan Awards from Travel Weekly. Travel Weekly’s annual Magellan Awards recognizes the travel industry’s leaders and are judged on a 100-point performance scale by a prestigious panel of top travel professionals.

CrusieOne received awards for its innovative technology and websites, prolific community involvement, unique marketing campaigns, and exceptional training. Overall, CruiseOne earned 4 gold awards and 3 silver awards from Travel Weekly.

Automated Process for Tracking Cruise Fares

At the end of October 2016, CruiseOne launched something called Cruise Fare Watch, which automates the process of tracking cruise fares. It provides daily knowledge of price changes which helps their agents stay ahead of the competition. Cruise Fare Watch enables CruiseOne agents to monitor cruise line price changes based on date and cabin category.

Over the past few years, CruiseOne has been dedicated to developing new technologies to provide its agents with an edge over competing travel agencies. The company has doubled its IT department and has developed additional web-based business tools such as an enhanced price quote program, group registration websites for franchisees, a modernized Business Center Intranet, and more.

Giving Back to Military Veterans

Since 2012, CrusieOne has been giving back to military veterans through its Operation Vetrepreneur: Become Your Own General contest. Veteran’s Day 2016 marked the fifth year that CruiseOne has held the contest. This year, the company again awarded five deserving military veterans with a free franchise.

The annual contest is open to former members of any of the five branches of the military (Army, Navy, Air Force, Marine Corps, and Coast Guard) who are retired, off active duty, and/or honorably discharged prior to the start of the contest.

The contest began in May and candidates were put through a rigorous three-part application process which included creating a business plan, video essay, and phone interviews. This year’s winners are Air Force Veteran Jason Bloomquist of Maple Shade, N.J.; Navy Veteran Cory Jennings of Midland, Texas; Air Force Veteran James Selleh of Brentwood, Tenn.; Air Force Veteran Jay Starks of Sandy, Utah; and Air Force Veteran Chuck Wellman of Beaverton, Ore.

To date, CruiseOne has awarded 25 free franchises valued at more than $317,000.

Top Half of Entrepreneur’s Franchise 500

CruiseOne has always done well on Entrepreneur Magazine’s annual Franchise 500 list. For 2016, the company landed at spot No. 51. This is up from the previous year’s rank of No. 150. CruiseOne’s highest rank was achieved in 2012 at No. 45. The lowest rank the company has earned was in 2006 at No. 156.

Section II – Estimated Costs

  • Please click here for detailed estimates of CruiseOne franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



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