The Cruising Club International commenced operations as an international marine franchise business in 2005, after seven years of operation in Sydney, Australia, and today is expanding its area of operations worldwide – particularly in Asia, USA, Europe and in Latin America. The Cruising Club Fractional Boat Ownership Franchise Network offers both business people and hard core 'boaters' the opportunity to easily acquire and operate our low cost and low overhead 'marine business in a box', and enjoy a lifestyle 'sea change' business that shares big boats with very appreciative owner/ members.
The Cruising Club Unit Franchise program is not for sale in countries where the franchise program is yet to be registered in compliance with local regulatory requirements, however National Franchise opportunities are still available in many countries worldwide. National Franchise applicants are required to open a number of ‘company owned’ fractional locations prior to registering and launching the Unit Franchise program within the allocated territory.
The Cruising Club Franchise System operates through a fractional sales and vessel management structure of marina based Unit Franchise and Vessel Management companies, supported by marketing and sales specific Associate Franchise locations, all reporting to the exclusively licensed National Franchisee. National franchisees are managed by The Cruising Club International, the intellectual property licensee and international franchisor, and administer the marketing, sales and ongoing management activities of a number of Unit Franchise locations, Associate Franchise sales locations and Fractional Vessel Syndicates at key marina and boating locations within the territory.
Each Unit franchise location offers The Cruising Club fractional equity program to up to ten members per vessel, from a range of approved vessels from 40ft to 135ft plus in length, according to the territory franchise package acquired. Exclusive franchise territories are available in three categories – Power Cruise (sport cruiser style), Power Fish (flybridge style) and Sail (sailing boats) – and in three classes – Commander Class (40ft to 68ft in length), Captain Class (69ft to 92ft) and Commodore Class (93ft to 135ft). Vessels over 135ft in length are marketed through a specific franchise class which is classified as Custom Class. The ongoing vessel management and maintenance program, plus provision of crew/supplies and fractional member driver skills training (where appropriate), provide a very strong ongoing revenue per vessel to each Unit Franchise location, complementing strong initial vessel acquisition and fractional development and sales margins.
The Cruising Club Vessel Developer program allows a Unit Franchisee to market, secure, accommodate and offer a range of large fractional vessels, with only minimal overhead and operating costs. The Vessel Developer program has been designed to provide an individual, family or corporation with 100% (or 50%) ownership and comprehensive use of a new luxury vessel, while securing the ‘exit strategy’ option to receive a 100% refund of their initial capital investment, following distribution of the vessel equity to new fractional equity members. A Vessel Developer enjoys comprehensive use of their vessel in conjunction with the fractional marketing company, throughout the duration of the fractional equity marketing period, and has first option to acquire a new vessel once the equity in their current vessel is sold and their capital has been repaid. As Fractional Vessel Equity is transferred to each new member in return for the required payment, the Developer receives a pro-rata repayment of the initial capital, and pre-booked use of the vessel by the new shareholder commences. Incoming fractional equity applicants are subject to a stringent due diligence procedure, including a skipper skills test where applicable.
The worldwide Marine industry suffered a significant downturn in the late 2000's with repossessions skyrocketing and boat sales declining substantially, matching the crash of the luxury products, stock market/financial and real estate industries. Luxury non-essential items, including recreational boats, ceased to be in demand as previously, and many manufacturing and dealer businesses subsequently went out of business. As fewer people were able to justify the capital, maintenance and depreciation costs of owning a large boat, the demand for The Cruising Club fractional program has correspondingly grown.
Today The Cruising Club Fractional Boat Ownership continues to be an increasingly viable boating option for many families and businesses, who continue to seek the enjoyment of large boat ownership, but without the substantial cost and ongoing maintenance hassle that comes with such a lifestyle decision. As more and more manufacturers and dealers come to support The Cruising Club in making a high quality boat ownership experience more affordable and available to more people and businesses, our Network continues to grow - and with it the range of spectacular boating experiences now available to everyone through this amazing 'lifestyle and opportunity cost' concept.
For more information about upcoming locations for The Cruising Club International or The Cruising Club - USA Franchise or Regional PPM investment opportunities, please click here.