Expedia Cruises Franchise Cost, Revenue & Review 2026
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]. Per the 2026 FDD, average unit revenue was $514K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $149K – $259K
- 14th pct Recreation & …
- Avg gross sales
- $514K
- 9th pct Recreation & …
- Royalty
- 9.0%
- 38th pct Recreation & …
- Units
- 93
- 41st pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment avg · 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
- Total investment $149K – $259K including a $49K franchise fee, 9.0% ongoing royalty.
- Average unit revenue of $514K/year (median $208K).
- Verdict A (Strongest tier), verdict score 76/100 (higher is better).
- System 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.
- Ultimate parent
- Expedia Group, Inc.
- 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 85% 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%
- percentage · 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 |
At 15.0% total fee load, roughly $77K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 52% below the recreation & entertainment norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$51K
10.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
4.9 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $514K
- Per unit, per year
- Median gross sales
- $208K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- projections based on historical data
- Sample size
- 59 units
- vs category median 6 · large
- Range (low → high)
- $252K→$13.5M
- Cohort dispersion (min → max)
- Quartile band
- $263K→$671K
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 181 Recreation & Entertainment brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $514K/year in gross sales. Median is $208K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.5x.
Fee burden
Total ongoing fee load of 15.0% — above the Recreation & Entertainment average of 8.8%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
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 averages
How Expedia Cruises Compares
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
3-year detail · Item 20
- Opened (3yr)
- 19
- Closed (3yr)
- 8
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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).
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)
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)
ⓘ 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
- 02MEDNo average net income disclosed despite $4.26M average revenue—suggests thin margins, operational challenges, or franchisor unwillingness to disclose profitability
- 03HIGHTwo litigation events within recent period (CWC affiliate lawsuit and Kay Group arbitration) signal franchisor-franchisee relationship strain and governance concerns
- 04MED9% royalty on gross revenues is high relative to travel/booking business model and compounds pressure on undisclosed net margins
- 05MINOR$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 |
| 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
FDD download
Expedia Cruises · FDD (2026) PDF
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?
According to Item 19 of the Expedia Cruises FDD, the average gross sales per unit is $514K. The median is $208K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
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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.