Dream Vacation Franchise Cost, Profit & Failure Rate 2023

Dream Vacation has the dream of planning the best vacation for you. If you are also willing to do the same, then you are at the right place. Dream Vacation is one of the 10 franchises for entrepreneurs looking for successful ventures.

It is also one of the 15 best franchises under $10,000 and under $30,000 that you must own. After conducting thorough research on the market, it is founded that this franchise opportunity is so excellent that it is also one of the best franchises that one must own. 

Here, we will talk about the Dream Vacation franchise and also facts related to its profitability, investment, expenses, and so on.

Dream Vacation Franchise

About Dream Vacations

In 1992, Dream Vacations was founded, and today it is the leading home-based travel franchise nationwide.

Also, they have managed to maintain its position as the world’s largest seller of cruise vacations even today.

So in 1993, it started offering franchises, and currently, it has more than 1,485 locations.

Dream Vacation is part of the powerhouse in the travel industry, and Dream Vacation offers a remunerative franchise opportunity to entrepreneurs. It is the best option for an investor who has a low budget.

It requires a low-cost investment, and also, they never demand any kind of experience in traveling.

Moreover, they provide training and ongoing support to all new franchisees. And lastly, financial support is also available for the franchises. 


Dream Vacation Franchise Model

Cost Or FeesAmount
 Initial-Investment$3,245 to $21,850
 Franchise-Fee$10,500
 Royalty-Fee1.5%-3%`
 Area RequirementN/A
 Total Outlets1485

Training Of Dream Vacation Franchise

Dream Vacation provides an initial training program to franchisees, and it is mandatory for the franchisees to attend and complete the training for the satisfaction of the franchisors.

They also provide a training program to experienced and non-experienced franchisees.

For new and un-experienced franchisees, they provide special training, which is held at training facilities in Broward County, Florida, and additionally, they also offer live virtual training.

As for the experienced franchisees, they only provide online training to the manager.  


Term Of Agreement & Renewal

The initial length of the franchise term is 5 years. After the completion of 5 years, the franchisees don’t have the option for the renewal of the term.

It doesn’t matter how good you are in condition or revenue; you don’t have the right to renew the term. 


Dream Vacation Franchise Profit & Revenue

Dream Vacation franchise owner earns from the commission received each month from the sales of travel packages.

As per records, Dream Vacation franchise owner makes approximately $117,531 in annual revenue. So if we assume an average profit margin of 25%, then we can find that a Dream Vacation franchise owner make $29,382 in annual net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%117531.00
Rent9.38%(11018.53)
Insurance4.69%(5509.27)
Salaries18.75%(22037.06)
Franchise Royalty Fees4.69%(5509.27)
Utilities1.88%(2203.71)
Cost of Goods Sold (COGS)23.44%(27546.33)
Labor (Variable)12.19%(14324.09)
Total (Expenses)75.00%(88148.25)
Net Profit25.00%29382.75

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Even the Dream Vacation company in itself is quite profitable and made $3.1M in the year 2022.


Failure Rate Of Dream Vacation

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201710921160+68
201811601287+127
201912871280+193

For the Franchised outlets:

  • In 2017, the growth rate was (68)/1092×100≈6.22%
  • In 2018, the growth rate was (127)/1160×100≈10.94%
  • In 2019, the growth rate was (193)/1287×100≈14.9%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Dream Vacation grew from 2017 to 2019, showing a growth rate between 6.22% and 14.9%. 


Payback Period Of Dream Vacation Franchise

With an investment of $21,850 and an estimated 25% profit on the average net revenue of $117,531, the yearly profit would be $29,382.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $21,850 / $29,382 = 0.76 years

Based on these figures, it will take approximately 7-12 months to pay back the initial investment for Dream Vacation. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

The travel service franchise market offers several opportunities for entrepreneurs, such as Cruise Planner Franchise.


Dream Vacation Comparison

CompanyDream VacationCruise Planner
Founded In19921994
Initial Investment$3,245 to $21,850$2,295-$23,665
Franchise-Fee$10,500$4000
Total Outlets148510,475
Annual Revenue$26.9 Million$6.4 Million 

Frequently Asked Question

How many Dream Vacations franchises are there?

Dream Vacations has more than 1,485 units across the U.S.

How much does it cost to own the Dream Vacations franchise?

An initial investment required to open a Dream Vacations Franchise is $3,245 to $21,850. 

Does Dream Vacation offer franchises?

Yes, Dream Vacation offers franchises, and It is one of the low-risk and low-cost investment franchises.

Who founded Dream Vacations?

Dream Vacations was founded by its parent company, World Travel Holdings in 1991. Later it began franchising in 1992.

Where is Dream Vacations headquartered?

The headquarters of Dream Vacations is located in Fort Lauderdale, Florida, United States.

3 thoughts on “Dream Vacation Franchise Cost, Profit & Failure Rate 2023”

  1. If there are 1,400+ franchise owners for Dream Vacations – where are they as they don’t come up in my google search? I am doing my due diligence prior to becoming an associate for Dream Vacations’s new mentor model yet I can’t find any real data on franchise satisfaction, owners information or anything?

    Reply
  2. Hi Amit,
    I’m looking to open a franchise and it has been hard for me to choose one. With your research, I’d love you get some time from you to talk.

    Reply

Leave a Comment