Risk Score
Pending analysis
Investment Range
$149,500 - $258,745
Franchise Fee
$29,000
Total US Locations
96
Business Summary
Expedia Cruises offers franchises for operating a travel agency business from a retail storefront. This business provides reservation services for cruise ships, airlines, car rentals, hotels, and other related travel services and products. Franchisees use Expedia Cruises' proprietary 'System' and 'Marks' to deliver these services.
Corporate History
Expedia Cruises (legally CruiseShipCenters USA Inc.) was formed as a Nevada corporation on March 1, 2007, and began offering franchises in April 2008. Prior to 2020, the company operated under the brand name Expedia CruiseShipCenters. Expedia Group, Inc. is the sole owner and parent of Expedia Cruises. An affiliate, CruiseShipCenters International, Inc. (CII), has been franchising cruise-focused travel agencies since January 1988, and licenses certain marks and software (like CruiseDesk) to Expedia Cruises for its operations.
Financial Overview
Investment Range
$149,500 - $258,745
Franchise Fee (Low)
$29,000
Franchise Fee (High)
$49,000
Royalty %
9%
Marketing %
4%
Equipment Costs (Low)
$59,000
Equipment Costs (High)
$126,500
Working Capital
$47,600
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Expedia Cruises' financial health is supported by its parent company, Expedia Group, Inc., which unconditionally guarantees Expedia Cruises' obligations to franchisees. Expedia Group, Inc. is a publicly traded company with strong financial performance, reporting net income of $1,224 million in 2024, $688 million in 2023, and $343 million in 2022. Its financial statements are audited and received an unqualified opinion, indicating a financially sound entity standing behind Expedia Cruises.
Financing Details
Expedia Cruises does not offer direct or indirect financing for the initial investment or any capital expenditures. The franchisor also does not guarantee any franchisee notes, leases, or other obligations. However, Expedia Cruises franchisees may be eligible for Small Business Administration (SBA) loan guarantees through third-party lenders.
Performance Metrics
Total US Locations
96
Franchised Units
96
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Expedia Cruises has two litigation cases to report. One case, filed in December 2018 by its affiliate, CruiseShipCenters Western Canada Ltd., against a former franchisee for breach of agreement, non-compete violations, and trademark infringement, was discontinued in January 2024. The second case, filed in November 2024 by a former franchisee, The Kay Group, LLC, is an ongoing arbitration. The former franchisee alleges losses and damages due to alleged actions and omissions by Expedia Cruises and breach of the franchise agreement. Expedia Cruises disputes these allegations and provided notice of termination for the franchisee's material breaches, including failure to pay landlord and undisclosed disbarment from practicing law. Arbitration hearing dates are scheduled for April 2025.
Bankruptcy History
Expedia Cruises has no bankruptcy information to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Expedia Cruises franchise, franchisees must be in good standing, sign new franchise documents (which might have different terms), execute general legal releases, complete any required training, bring their center up to current brand standards by a specific deadline, and pay an additional term franchise fee. Additionally, the franchisee's market area must be deemed sufficiently serviced; if not, Expedia Cruises may adjust the market area by reducing the number of targeted households before granting a renewal.
Training & Support Program
Franchisor Assistance
Expedia Cruises provides comprehensive assistance to its franchisees. Before opening, this includes advising on necessary licenses, designating a market area, assisting with site selection and lease negotiation, providing prototypical design plans and specifications for the center, supplying an initial kit of promotional materials, granting access to the CruiseDesk® system and other proprietary software, and furnishing initial training. After opening, Expedia Cruises offers ongoing guidance on system standards, CruiseDesk® usage, approved supplier lists, marketing programs, system improvements, and administrative, bookkeeping, and accounting procedures. This ongoing support is provided through the online Manual, bulletins, and telephone or field consultations.
Initial Training Hours
129
Training Location
Vancouver, BC, Canada
Ongoing Support
After opening, Expedia Cruises franchisees receive ongoing support through various channels. This includes continuous guidance on system standards, assistance with the CruiseDesk® system, updated lists of approved travel suppliers, participation in marketing programs, information on system improvements, and support with administrative and accounting procedures. This help is provided through the online Manual, bulletins, and phone or field consultations. Additionally, Expedia Cruises may offer optional periodic and refresher training courses, some internet-based at no extra cost, others with associated fees. Franchisees are also required to attend annual National Conferences and Regional Franchisee meetings, for which they cover travel, lodging, and other expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Expedia Cruises defines its market areas based on 'Targeted Households,' which are households with an annual income greater than approximately $125,000. A typical market area is estimated to contain between 15,000 and 35,000 such households. These household income thresholds may be adjusted by Expedia Cruises to account for regional Consumer Price Index differences or other factors.