Dream Vacations Franchise Review

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Dream Vacations proudly promotes itself as a home-based franchise business opportunity.

The company offers people an opportunity to start their own travel agency from home.

Are you reading this Dream Vacations franchise review as part of your business research?

So, you want to know more about the Dream Vacations franchise opportunity.

You want to know if Dream Vacations is a scam or a legit opportunity, and you want to know how much a Dream Vacations agency owner makes.

I know you have lots of questions about the Dream Vacations franchise travel agency.

So, let start with our review to find out if the Dream Vacations franchise is legit or a scam?

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Dream Vacations Franchise Review Summary

Business Information

Name: Dream Vacation

Business Type: Travel Agency

Investment: $9,800

  • Dream Vacations is a hosted travel agency. The company offers its members an opportunity to make money online from home with their own home-based travel agency.
  • Dream Vacations agencies make money by selling cruises, vacation packages, and other travel-related products and services.
  • Dream Vacations initial investments and franchise fees are very high.
  • The commissions are low. The travel industry booking commissions are as low as 5%.
  • This is not truly an online home-based business. You will have to meet with customers to assist them with planning for a dream vacation.
  • Dream Vacations is a commission-based sales opportunity. It is not recommended for people without sale experiences.

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What Is Dream Vacations?

Dream Vacations is a hosted travel agency owned and operated by World Travel Holdings.

The company offers people an opportunity to start their own home-based travel agency through a franchise system.

The base cost to launch a Dream Vacations agency franchise is $9,800.

There are also 15 additional franchise fees to own and operate a Dream Vacations agency. I’ll discuss more in the cost section.

Dream Vacations offers exclusive training and support to each franchise agency.

The company collects and processes all commissions for the franchises. This reduces overhead expenses.

A disadvantage of being a Dream Vacations travel agency is low commissions. Be prepared to work long hours and earn a small commission.

Dream Vacations is not an online home-based business. You will have to meet with customers to make a sale.

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How To Become a Dream Vacations Agency?

To become a Dream Vacations agency, you simply visit the company website and request a meeting with a Franchise Development Specialist (FDS).

The eligibility and qualification interview with the FDS is a sales pitch to pressure you into purchasing a Dream Vacations franchise.

Dream Vacations will provide every potential franchisee with the Franchise Disclosure Document (FDD). This document explains the franchise fees, training, earnings, and other financial information.

Once you have signed the franchise agreement and paid the $9,800 initial fee, you are a new owner of the Dream Vacations agency.

But before you can earn commissions, you are required to obtain a travel agent license or certificate.

How Much Does A Dream Vacations Franchise Cost?

There are 16 franchise fees to purchase a Dream Vacations agency. I’ll only list the most important fees. You should check the Dream Vacations franchise document for a completed list.

The Initial Franchise Fee is between $495 to $9,800. This fee is determined based on your franchise designation, level 1, 2, or 3.

  • Level 1 franchises have zero travel industry experience. You are required to pay the highest price at $9,800.
  • Level 2 franchises are travel agents with proven annual sales revenue of $100,000 to $199,999. They must also have a current CLIA or IATAN card. The Dream Vacation franchise price for this group is $3,195.
  • Level 3 franchises are travel professionals with annual sales revenue of $200,000 or more. They must also have a current CLIA or IATAN card. This group pays the lowest franchise fee, $495.

Dream Vacations charges a Royalty Fee of 4.9% to 10% and is calculated using your Annual Commissionable Sales. This fee is deducted directly from your commissions.

You are required to pay 3% of the travel insurance royal fee on every sale.

Every Dream Vacations franchisee must pay a monthly administrative service fee between $25 to $150.

There are more fees:

  • Marketing Contribution: 0.25% of the annual commissionable sales.
  • Minimum Annual Commissionable Sales Fee: $9,305, $6,605, or $2,700 based on franchise level.
  • Insufficient Funds Checks and Refused Credit Card Charge Fees: up to $29.
  • Sales Associate and Replacement Manager Training Fee: $495.
  • Franchise Transfer Fee: $3,195.
  • Relocation: $149.
  • Late Payment Fee: $25.
  • Annual Sales Associate Fee: $100 per year for each sales associate
  • Errors and Omissions Insurance: $150 per person per year.

When you add up all the fees, the actual cost to purchase a Dream Vacations franchise is much more than $9,800.

Most Dream Vacations agencies operate their business from home, while others open a small travel agency office.

If you are planning to open an office, your cost will be more.

Remember, the expenses and fees above do not include your time building up the business.

Excessive franchise fees and operating expenses have forced many home-based travel agencies to go out of business.

You must generate a lot of sales and bookings just to cover the Dream Vacations franchise fees.

Listen, there are online home-based business opportunities that require far fewer fees and initial investment to start.

I launched my Affiliate Marketing business for less than $300. This is my business, not a franchise. I earn over $100k each year.

You can click on the link above to discover my personal process of financial success. It will help you understand why I consider Dream Vacations is not an online business.

How Much Does A Dream Vacations Franchise Owner Make?

Dream Vacations tries every possible way to avoid answering this question.

Dream Vacations claims that franchise owners receive up to 100% of the industry commissions. This statement is not true.

Do you remember the franchise fees?

Dream Vacation deducts the following franchise fees from the commissions: 10% commissions royalty fee, 3% travel insurance royal fee, and 0.25% marketing contribution fee.

If we take out the fees from the commissions, the Dream Vacation franchise only receives 96.75% of the commissions.

You probably think 96.75% commission on a sale is a lot. But it is not.

To understand how much a Dream Vacations Agency makes in terms of dollars, you need to understand the travel industry commission structure.

On average, a cruise or tour company pays between 5% to 10% commission based on the booking volume generated by the travel agency.

Let assume, Dream Vacations agencies receive the highest commission, 10% of every sale.

A commission on a $1,000 trip is $100.

Dream Vacations takes $13.25 (13.25%) from this commission.

Dream Vacations agency earns $86.75 for a $1,000 booking, which is less than 9% commission.

You must deduct other franchise fees from this $86.75.

I hope you can see that it is not easy to make money as a Dream Vacations franchise owner.

As an affiliate marketer, I make between 50% to 70% commission on each sale.

It is easy to make $10,000 to $15,000 per month with an affiliate marketing business.

Is Dream Vacations Franchise A Scam?

Dream Vacations is a not scam. But I can tell you this, Dream Vacations franchise is not a profitable business opportunity.

The commission is too low. Plus, this is a very competitive business. More and more people prefer to book their own vacation. Nobody likes to deal with a travel agent.

Many Dream Vacations franchise owners learned this the hard way. They invested a lot of money to purchase a Dream Vacations agency, then discover that they earn pennies on a dollar.

You can avoid this costly mistake by careful research, study, and investigate Dream Vacations before investing.

The fastest way to learn about the Dream Vacations franchise is by reading online reviews. These reviews offer real peoples’ experiences as Dream Vacations franchise owners. You can quickly learn that the Dream Vacation franchise is not profitable.

As a successful Online Business Reviewer, I have evaluated hundreds of home-based businesses to expose online scams.

Yes, Dream Vacations is not a scam. But this business is very competitive and difficult to make money.

Is Owning A Dream Vacations Franchise Worth It?

Dream Vacations franchise might be worth it for existing brick-and-mortar travel agencies looking to compete online. It helps to bring in another source of revenue.

For those with zero travel industry experience looking for ways to make money online, the Dream Vacations franchise is not a good option.

I will never start a business unless the return on investment (ROI) is at least double. You cannot get this with Dream Vacations.

Let me ask you this,

Why do you want to start an online business?

To earn extra money from home, to be your own boss, or to achieve financial freedom?

But to make money, we invest in a PROFITABLE online business.

Dream Vacations franchise is not profitable.

To be honest,

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I hope this Dream Vacations Review answers your question, is Dream Vacations a scam?

Until next time.

Please share your own Dream Vacations experience below.

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