What Are the Startup Costs?
Expedia Cruises franchise owners need to have adequate savings while starting and continuing to build their businesses
Expedia Cruises franchise owners should expect to invest between $165,250 and $291,245 to get their business up and running. Our startup costs are relatively low for a retail franchised business. There is also no inventory that you need to buy in order to start selling travel products to customers.
As part of the initial costs of getting your business going, you will need to have enough working capital during the first year to fund your lifestyle and expenses in the ramp-up phase. Delayed gratification is the name of the game for an Expedia Cruises owner because franchisees and their team of Vacation Consultants only start earning commissions once customers begin their travel. That means that if today you sell a cruise that departs six months from now, you and your Consultants will receive commission in six months once the trip commences. As your business matures, your team grows and your clients depart, however, those commissions begin to grow and are paid on a more regular basis.
Here is a detailed look at start-up costs, from Item 7 of our 2019 Franchise Disclosure Document:
| Type of Expenditure | Amount (low range) | Amount (high range) | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 | Lump Sum | When Franchise Agreement is signed | Us |
| In-person Training - Your Transportation and Accommodation | $1,200 | $6,000 | As Arranged | As Incurred | Suppliers |
| In-person Training – Additional Trainee | 0 | $495 | As Arranged | As Incurred | Us |
| In-person Training – Additional Trainee Transportation and Accommodation | 0 | $1,750 | As Arranged | As Incurred | Suppliers |
| Premises Lease Security Deposit | $2,500 | $8,000 | As Arranged | As Incurred | Landlord |
| Utilities and Telephone Deposit | 250 | $900 | As Arranged | As Incurred | Suppliers |
| Leasehold Improvements | $16,000 | $50,000 | As Incurred | As Incurred | Suppliers |
| Signage (interior and exterior) | $7,500 | $10,500 | As Incurred | As Incurred | Suppliers |
| Computers and Software | $3,000 | $7,000 | Lump Sum | As Incurred | Suppliers |
| Office Furniture, Equipment and Office Supplies | $10,600 | $21,500 | As Incurred | As Incurred | Suppliers |
| Insurance | $800 | $2,000 | As Arranged | As Arranged | Insurance Provider |
| Professional Fees | $500 | $3,500 | As Arranged | As Arranged | Professionals |
| Business License and/or Permits | $500 | $1,500 | Lump Sum | As Incurred | Local Authorities |
| Additional Funds Working Capital for the first 18-36 Months | $74,000 | $123,300 | As Needed | As Incurred | Varies |
| TOTAL ESTIMATED INITIAL INVESTMENT | $155,850 | $275,945 |
These costs are outlined in detail in our Franchise Disclosure Document, which is provided to candidates later on during our mutual evaluation process. You should expect to incur these types of expenses as part of your initial investment from the day you sign the Franchise Agreement through the first 18-36 months of operating your Travel Business. However, the actual amounts of your expenses may vary.
Amounts shown are in United States Dollars and are based on our USA FDD. Such measures and experiences are intended for use in the USA only and are not intended to represent or be used for viewers in Canadian markets. Canadians may inquire about financial representations in accordance with their local franchising regulations.
Continue Learning About Expedia Cruises
For in-depth details about owning a business with Expedia Cruises, download our free franchise brochure by filling out the form below. You can also learn more by reading the essentials about our franchise opportunity here.
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