One year ago, Andrew Brown was looking to transition from his career as a sales executive with a Canadian insurance company. He wanted to find a business to purchase, and his lifelong love of travel led him to this industry. After doing some research, he settled on purchasing an Expedia Cruises franchise in Guelph, Ontario.
Fast-forward to today, and Brown is pleased with his first year in business. Expedia Cruises was no stranger to the Guelph community — Brown’s was a franchise repurchase, with previous owners having operated the agency for 12 years — but his efforts at re-engaging the local community have paid off.
He’s engaged in print marketing and flyer drops, and he sends Expedia Cruises’ magazines, published three times a year, to his top clients. He has also partnered with local groups, like a junior hockey club, for advertising. It’s led to growth for the agency.
Brown has also built up his ranks of independent contractors (ICs). When he bought the agency, there were 25, and that’s up to 38 in the past year. He attributed that increase to his personal network as well as raising awareness of the business locally.
But why did he opt for an Expedia Cruises franchise, which comes at a significantly higher price point than other franchise options?
Expedia Cruises’ franchise fee is $49,000, but it estimates an investment of $197,050 to $328,745 is necessary to get a business up and running.
Home-based franchise models like Dream Vacations/CruiseOne (owned by World Travel Holdings) come at a lower price point ($9,450).
“I’m not shy about, yes, this is a more expensive model than some others,” Brown said. “The fact that I was purchasing an existing business with existing cash flows just made the risk factor a lot less on the scale, in addition to working with Expedia Cruises.”
Why did he choose Expedia Cruises?
Brown said Expedia Cruises itself and its model was a large part of his decision to enter the travel industry in such a manner. The company is growth-oriented, he said, and invests in technology and support.
Also important was the fact that Expedia Cruises franchises are homes for ICs.
“It is a model that I’m very used to working within, and I have a real passion for helping others to succeed in the way that they want to succeed,” Brown said.
Choosing a franchise model
For those considering the franchise model, Brown said, “First and foremost, find the right fit for yourself.”
There are a lot of options, and he encouraged thorough research before entering the industry.
He also said it’s important to understand the difference between an IC model and a model where agents are employees.
“That is probably the most significant thing that is going to weigh on the financials of your business,” he said. “So, understanding the pros and cons of both — and there are pros and cons of both. The reality is, for my fit, I was much more comfortable with the independent contractors, focused on really helping those vacation consultants build their practices by having that incredible influence that they have over their customers’ decision on where they’re actually going to travel.”
Brown plugged Expedia Cruises specifically, calling it a supportive company offering the option to grow as a franchisee in more than one market. That next step is one Brown hopes to take in the future.
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