Expedia Cruises Franchise Cost, Revenue & Review 2026
- Investment
- $149K – $259K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Expedia Cruises is a travel franchise specializing in cruises and vacation packages, backed by the Expedia brand. Franchisees run a retail travel agency with advisors booking cruises and trips, earning commissions.
FranchiseVerdict summary · 2026
A Expedia Cruises franchise requires a total initial investment of $149K – $259K, including a $49K franchise fee and an ongoing 9.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $149K – $259K
- 13th pct Recreation & …
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 9.0%
- 49th pct Recreation & …
- Units
- 93
- 45th pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $149K – $259K including a $49K franchise fee, 9.0% ongoing royalty.
- RETURNSItem 19 does not yield a per-outlet annual revenue figure we can compare across brands.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHNegative: net -5 franchised outlets in the latest year (4 opened, 2 closed) (Item 20).
- DECLINESystem contracting at -6.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- CruiseShipCenters USA Inc.
- Parent company
- Expedia, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- Expedia Group, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- CEO title
- President and Director
- Matthew Eichhorst
- Incorporated in
- NV
- HQ
- 1111 Expedia Group Way West, Seattle, Washington 98119
- Auditor
- Ernst & Young LLP (Expedia Group auditor)
- Audited financials
- Franchisor revenue
- $14.7B
- vs $13.7B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- CII
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Matthew Eichhorst
- Headquarters
- WA
- Founded
- 2007
- FDD year
- 2026
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 64% below the typical recreation & entertainment franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $36K | $59K |
| Equipment, build-out, other | $65K | $150K |
| Total initial investment | $149K | $259K |
Source: Expedia Cruises 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $149K – $259K
- Top 40% of category vs category
- Liquid capital req'd
- $36K – $59K
- Top 40% of category vs category
- Franchise fee
- $49K – $49K
- Top 40% of category vs category
- Royalty
- 9.0%
- typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 15.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $2 |
| Transfer fee | $29K |
| Renewal fee | $5K |
| Total fee load | 15.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Expedia Cruises is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Expedia Cruises unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Item 19 type
- projections based on historical data
- Sample size
- 59
- vs category median 5 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 165 Recreation & Entertainment brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 15.0% — above the Recreation & Entertainment median of 8.0%.
Disclosure
Item 19 does not yield a per-outlet annual revenue figure we can compare across brands.
Operator retention
System contracting at -6.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 6% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Recreation & Entertainment medians
How Expedia Cruises Compares
Category median of published Recreation & Entertainment brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 93
- Opened
- 4
- Last reporting year
- Closed
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 5.9%
- Net growth (3-yr)
- +9.2%
- Net unit change over 3 years
- 3-yr CAGR
- -6.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 17
- Franchisor's next-year forecast
- Transfer rate
- 2.2%
- Owners selling to other franchisees
- Continuity rate
- 91.2%
- Units that stayed open
- Termination rate
- 1.1%
- Franchisor-initiated terminations
- Ceased ops
- 2.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
- Indiana
- Michigan
- New York
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
87 current owners across 26 states.
- FL 19
- CA 15
- TX 7
- GA 6
- WA 5
- NY 4
- NJ 3
- TN 3
- AZ 2
- DE 2
- IL 2
- LA 2
- +14 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Contracting franchise system with litigation history, non-transparent profitability data, and aggressive royalty structure creates elevated investment risk.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One case: CruiseShipCenters Western Canada Ltd. v. MRMA Travel Ltd. (2018, British Columbia; discontinued Jan 2024). One case: The Kay Group LLC v. CruiseShipCenters USA Inc. (arbitration 2024; franchisee withdrew claims March 2025).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP (Expedia Group auditor)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financials are the audited consolidated statements of the affiliate/parent guarantor Expedia Group, Inc. (formerly Expedia, Inc.), provided in lieu of the franchisor's (CruiseShipCenters USA Inc.) own statements; Expedia Group unconditionally guarantees the franchisor's obligations. All figures in millions USD, fiscal years ended Dec 31, 2025 (yr1) and 2024 (yr2). Net worth = total stockholders' equity ($2,547M, including $1,263M non-controlling interest); total liabilities derived as total assets minus total stockholders' equity. Net income is total consolidated net income ($1,301M); net income attributable to Expedia Group, Inc. was $1,294M.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 76 / 100 verdict
- 01MINORUnit count declining 5.1% YoY (93 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHTwo litigation events within recent period (CWC affiliate lawsuit and Kay Group arbitration) signal franchisor-franchisee relationship strain and governance concerns
- 03MED9% royalty on gross revenues is high relative to travel/booking business model and compounds pressure on undisclosed net margins
- 04MINOR$149,300-$258,545 initial investment with $49,000 franchise fee requires significant capital but lacks clear ROI transparency
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 15.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 15,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Seattle, WA |
| Jury trial waiver | No |
| Governing law | WA |
| Litigation count | 2 |
View Item 3 litigation summary
One case: CruiseShipCenters Western Canada Ltd. v. MRMA Travel Ltd. (2018, British Columbia; discontinued Jan 2024). One case: The Kay Group LLC v. CruiseShipCenters USA Inc. (arbitration 2024; franchisee withdrew claims March 2025).
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 76 hrs
- Training location
- Vancouver, British Columbia, Canada (in-person CMA); virtual/e-learning (online portions)
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- CruiseDesk
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CruiseDesk
Item 20 · call current owners
Franchisee Contacts
89 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Expedia Cruises franchise?
The total investment to open a Expedia Cruises franchise ranges from $149K – $259K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Expedia Cruises franchise owners earn?
Item 19 of the Expedia Cruises FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Expedia Cruises?
Expedia Cruises is franchised by CruiseShipCenters USA Inc.. Its parent company is Expedia, Inc.. The ultimate parent named in the FDD is Expedia Group, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Expedia Cruises FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Expedia Cruises FDD and qualifies whose outlets they describe.
What is Expedia Cruises's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Expedia Cruises (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Expedia Cruises franchise locations are there?
As of their most recent FDD filing, Expedia Cruises has 93 total units in the United States, including 93 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is Expedia Cruises a good franchise to buy?
FranchiseVerdict rates Expedia Cruises as a A-grade franchise with a verdict score of 76 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.