FRANCHISE DISCLOSURE DOCUMENT
REQUIRED BY THE FEDERAL TRADE COMMISSION
Travel Lines Express Inc 9858 Glades Road #208 Boca Raton Florida 33434 561 482 9557
© 2017 Travel Lines Express™
All Rights Reserved
Official Website: www.travellinesexpress.com
Travel Lines Express is engaged in the sale of franchises regarding the operation of a full service or cruise only travel agency. Franchisee can cancel at any time for any reason. The only Travel Agency Franchise Program in the nation that does not require signing a Non-Compete clause and does not require signing a Non-Disclosure document. Initial Franchise Fee is $500 and is waived for existing agents, any member of the Military, Veterans and Disabled Americans. Monthly Service Fee is $75.
Issuance Date is March 1st 2017
1) This disclosure document summarizes certain provisions of the franchise agreement and other information in plain English. Read this disclosure document and all agreements carefully. You must receive this disclosure document at least 14 days before you sign a binding agreement or pay any fee. You must also receive completed copies of all contracts at least 5 days before you sign them.
(2) You may have elected to receive an electronic version of your disclosure document. If so, you may wish to print or download the disclosure document for future reference. You have the right to receive a paper copy of the disclosure document up until the time of sale. To obtain a paper copy, contact name at address and telephone number.
(3) Buying a franchise is a
complicated investment. The information contained in this disclosure document
can help you make up your mind. Note, however, that the Federal Trade Commission
(FTC) has not checked the information and does not know if it is correct.
Information comparing franchisors is available. Call your State agency or your
public library for sources of information. Additional information on
franchising, such as ``A Consumer's Guide to Buying a Franchise,'' is available
from the FTC. You can contact the FTC in Washington, D.C., or visit the FTC's
home page at www.ftc.gov for further information. In addition, there may be laws
on franchising in your State. Ask your
State agencies about them.
(4) You should also know that the terms and conditions of your contract will govern your franchise relationship. While the disclosure document includes some information about your contract, don't rely on it alone to understand your contract. Read all of your contract carefully. Show your contract and this disclosure document to an advisor, like a lawyer or an accountant.
(5) Federal Trade Commission, Washington, DC 20580.
Table of Contents
Item 1. The Franchisor, its Parent, Predecessors, and Affiliates
Item 2. Business Experience
Item 3. Litigation
Item 4. Bankruptcy
Item 5. Initial Franchise Fee
Item 6. Other Fees
Item 7. Estimated Initial Investment
Item 8. Restrictions on Sources of Products and Services
Item 9. Franchisee's Obligations
Item 10. Financing
Item 11. Franchisor's Assistance, Advertising, Computer Systems, and Training
Item 12. Territory
Item 13. Trademarks
Item 14. Patents, Copyrights, and Proprietary Information
Item 15. Obligation to Participate in the Actual Operation of the Franchise Business
Item 17. Renewal, Termination, Transfer, and Dispute Resolution
Item 18. Public Figures
Item 19. Financial Performance Representations
Item 20. Outlets and Franchisee Information
Item 21. Financial Statements
Item 22. Contracts
Item 23. Receipt
Item 1. The Franchisor, its Parent, Predecessors, and Affiliates
A. The name of the Franchisor is TRAVEL LINES EXPRESS, INC. There were no predecessor Franchisors. Franchise Program includes travel industry trade association accreditation, registration, certification, pseudo city code, exclusive identification numbers, authorized security access codes, user passwords, technology programs, co-op advertising funds, sales material, marketing material, electronic brochures, electronic news, electronic manuals, familiarization trips, complete self paced on-line training, real-time live access global reservation systems connected to your computer including credit card merchant program with built-in processing systems.
B. Franchisor has not previously offered or sold franchise's in any other line of business.
C. The Franchisor is engaged in the business of selling franchise's for the operation of a full service or cruise only travel agency. You will specialize in the sales of airline tickets, hotel rooms, car rentals, vacation packages, resorts, cruises, rail tickets, bus tickets, sporting events, concerts, theatre and other travel agency services.
D. Franchisee is authorized to operate a full service or cruise only travel agency dealing in the arrangement of cruises, airlines, hotels, cars and vacation packages. You deal directly with every airline, hotel company, car rental company, vacation tour operator company and cruise company.
E. No special equipment is required or needed. Franchisee is encouraged to utilize a modern computer with high speed internet access.
F. Travel Lines Express is incorporated in the State of Florida. The franchisor's agent for service of process is Bernard Korn, President and the business address is listed on the cover page.
Item 2. Business experience
The following list includes the complete names of the officers and directors who will have management responsibility with the business activities and operations of the company and provides each individual's business background, including principle occupation for the past five years.
BERNARD KORN - President, Chief Executive Officer & Director - 1989 to Present. A pioneer, founder, inventor of one of the largest business opportunity networks for the travel industry. Bernard Korn has become a world leader providing the travel industry with superior solutions to manage the distribution and selling of travel services. Bernard Korn is a member of the International Travel Agents Network.
Item 3. Litigation
A. Neither the Franchisor, nor any person identified in Section 2 of this prospectus has pending any administrative, criminal or material civil action or a significant number of civil actions irrespective of materiality, alleging a violation of any franchise law, securities law, fraud, embezzlement, fraudulent conversion, restraint of trade, unfair or deceptive practices, misappropriation of property or comparable allegations.
B. Neither the Franchisor, nor any person identified in Section 2 of this prospectus has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10 year period immediately preceding the franchise business, has been convicted of a misdemeanor or pleaded nolo contendere to a misdemeanor charge or been held liable in a civil action by final judgment or been the subject of a material complaint or other legal proceeding.
C. Neither the Franchisor, nor any person identified in Section 2 of this prospectus is subject to any injunctive or restrictive order or decree relating to franchises or under Federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law as a result of a concluded or pending action or proceeding brought by a public agency.
Item 4. Bankruptcy
During the 10 year period immediately preceding the franchise business, neither Franchisor nor any predecessor, officer or general partner of the Franchisor has been adjudged bankrupt or reorganized due to insolvency, or was a principle officer of any company or a general partner in any partnership that was adjudged bankrupt or reorganized due to insolvency during or within 1 year after the period that such officer or general partner of the Franchisor held such position in such company or partnership, nor has any such bankruptcy or reorganization proceeding been commenced.
Item 5. Initial Franchise Fee
A. The initial franchise fee for the right granted under the franchise agreement is $500 and is payable in lump sum.
B. Franchise fee does not include ARC or IATA application fees, annual accreditation dues, state registration or licensing fees.
C. The initial franchise fee is uniform for all persons acquiring a franchise and is refundable.
D. Initial franchise fee is $0 for existing agents, members of the Military, Veterans and Disabled Americans.
E. Franchisee may terminate the agreement within thirty days and receive a complete refund of initial franchise fee.
Item 6: Recurring or Occasional Fees
A. In addition to the initial franchise fee, the Franchisee is required to pay a monthly service fee in the amount of $75.
B. Monthly service fees are non-refundable.
ITEM 7: Estimated Initial Investment
The Franchisee should expect to make the following initial investment prior to the time of commencing the business.
Expenditure Amount To Whom Paid When Due Refundable
A. Franchise Fee $500 Franchisor Signing Agreement Yes
B. Franchise Royalty $75 Franchisor Monthly No
ITEM 8: Restrictions on Sources of Products and Services
A. No specific real property lease or investment is required by Franchisee.
B. No specific leased equipment, fixtures or fixed assets is required by Franchisee.
C. No specific inventory is required to commence operations by Franchisee.
D. The Franchisee has no obligation to lease from the Franchisor or its designee's any goods, supplies, fixtures, equipment, inventory or real estate relating to the establishment and operation of the franchised business.
Item 9: Franchisee's Obligations
A. Franchisee is required to purchase travel services, technology services, reservation services, website hosting, web domain names, web design, web management and web marketing services from suppliers approved by the Franchisor.
B. The Franchisor shall provide the Franchisee with a list of approved suppliers.
C. The list of approved suppliers will be updated on a regular basis.
Item 10. Financing
Franchisor does not offer financing arrangements to a Franchisee.
Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training
A. Establish Franchisee with a fully authorized travel agency or official cruise only travel agency for the travel industry representing all the major travel companies.
B. Provide a reservation system with credit card merchant program and automated processing system.
C. The Franchisee will receive complete revenue credit allowing the franchised business to receive special discounts, earn override commissions, receive free and reduced rate travel benefits.
Item 12. Territory
A. Franchisor will not grant an exclusive area or territory to any Franchisee.
B. Each Franchisee will be responsible for selecting the location of the franchised business.
Item 13. Trademarks
A. Franchisor has not registered its trade name, trademark or service mark with the United States Patent and Trademark office at the present time.
B. There are presently no pending interference, opposition or cancellation proceedings or any pending material litigation involving such marks, trade names, logotypes or other commercial symbols which are relevant to their use in this state or other states.
Item 14: Patents, Copyrights, and Proprietary Information
There are no registered patents or copyrights which are material to the purchase of the franchise.
Item 15: Obligation to Participate in the Actual Operation of the Franchise Business
Franchisor requires the Franchisee to participate in the actual management and operation of the franchise business.
Item 16: Restrictions on What the Franchisee May Sell
The Franchisee may offer travel services and technology services approved by the Franchisor.
Item 17: Renewal, Termination, Transfer, and Dispute Resolution
A. The initial term of the franchise is for a period of two years and is not affected by any other agreements including leases. The Franchisee has many advantages signing a long term relationship including the ability to build substantial equity and long term investment appreciation. It allows the Franchisor to utilize all resources necessary to develop a successful travel agency business and establish a long term revenue sales history to a potential buyer of the franchisee's business. The Franchisee has the option to sell or assign the franchised business at any time during the franchise agreement with the prior written consent of the Franchisor, which shall not be unreasonably withheld. All major travel suppliers recognize and appreciate a long term commitment which ultimately results in higher commissions, generous co-op advertising funds, consumer lead generation, website development, technology partnerships and increased travel benefits.
B. Franchisee shall have the option to renew the franchise for an additional two year term.
C. Upon the termination of the franchise for any cause, the franchisee shall retain no interest in the franchise business.
D. The Franchisor need not repurchase the franchise under any condition. The Franchisor does retain the right of first refusal to repurchase the franchise.
E. Franchisee may terminate the franchise agreement at any time by giving Franchisor thirty days written notice.
Item 18. Public Figures
Franchisor does not at the present time have any arrangements of any kind with public figures.
Item 19: Financial Performance Representations
Franchisor does not make any claims with respect to actual, average, projected or forecasted franchise sales, profits or earnings.
Item 20: Outlets and Franchisee Information
A. No franchise's have been terminated or cancelled by the Franchisor.
are currently 150 Franchises operating in 30 states.
95 Franchisees operate from their home.
20 Franchisees have a store front location.
35 Franchisees have office space in a building.
One of the Franchisee's operates from a wireless laptop computer and travels around the world year round.
Alabama - 5 Franchises Alaska - 2 Franchises Arizona - 8 Franchises Arkansas - 3 Franchises California - 0 Franchise Colorado - 6 Franchises Connecticut - 0 Franchise Delaware - 2 Franchises Hawaii - 0 Franchise Idaho - 2 Franchises Illinois - 0 Franchise Indiana - 0 Franchise Florida - 9 Franchises Georgia - 8 Franchises Iowa - 0 Franchise Kansas - 6 Franchises Kentucky - 8 Franchises Louisiana - 7 Franchises Maine - 7 Franchises Maryland - 0 Franchise Massachusetts - 8 Franchises Michigan - 0 Franchise Minnesota - 0 Franchise Mississippi - 2 Franchises Missouri - 2 Franchises Montana - 2 Franchises Nebraska - 0 Franchise Nevada - 8 Franchises New Hampshire - 2 Franchises New Jersey - 9 Franchises New Mexico - 3 Franchises New York - 0 Franchise North Carolina - 5 Franchises North Dakota - 0 Franchise Ohio - 7 Franchises Oklahoma - 2 Franchises Oregon - 0 Franchise Pennsylvania - 7 Franchises Rhode Island - 0 Franchise South Carolina - 6 Franchises South Dakota - 0 Franchise Tennessee - 7 Franchises Texas - 0 Franchise Utah - 0 Franchise Vermont - 2 Franchises Virginia - 0 Franchise Washington - 0 Franchise West Virginia - 2 Franchises Wisconsin - 0 Franchise Wyoming - 2 Franchises
B. The Franchisor will grant at least 500 franchises in most states throughout the United States.
C. It is estimated that at least 1,000 franchises will be granted during the next twenty years.
Item 21: Financial Statements
Board of Directors and Stockholders of
Travel Lines Express, Inc
We have audited the accompanying consolidated financial statements of Travel Lines Express, Inc. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position and financial condition of Travel Lines Express, Inc in conformity with generally accepted accounting principles.
Item 22: Contracts
This agreement is made on March _____ 2017 by and between TRAVEL LINES EXPRESS, INC hereinafter called Franchisor and _____________________________ hereinafter called Franchisee.
A) Whereas, the Franchisor has developed and innovated a unique method of conducting its business.
B) Whereas, the Franchisor is the owner of all rights, title and interest in and to its trade name, trademark, service mark, quality control methods, advertising, copyrights and logotypes.
C) Whereas, the Franchisor is willing and agrees to grant the Franchisee such franchise under the terms and conditions as hereinafter set forth.
Now therefore, the parties agree as follows:
1. FRANCHISE FEE Franchisee Please Initial Here ____
For and in consideration of the grant of the franchise, the initial franchise fee is $500.
A. The franchise fee is refundable.
B. Initial franchise fee is $0 for existing travel agents, members of the Military, Veterans and Disabled Americans,
C. Franchisee may terminate the agreement within thirty days and receive a complete refund of initial franchise fee.
2. SERVICE FEES Franchisee Please Initial Here ____
The Franchisee is required to pay a monthly service fee in the amount of $75. The monthly service fees are non-refundable.
A. Franchisee will receive 90/10 commission split.
B. Franchisee will receive 100% commission upon ARC or IATAN accreditation.
3. TERM AND RENEWAL Franchisee Please Initial Here ____
The initial term of this agreement shall be for a period of two ( 2 ) years. Franchisee shall have the option to renew the franchise for an additional two ( 2 ) year period by signing the then current franchise agreement.
The Franchisor may refuse to renew a franchise on the following basis.
A. Franchisee is in default of any provision in the franchise agreement.
B. Franchisee fails to give written notice of intent to renew thirty days prior to expiration of the current franchise agreement.
C. Franchisee fails to execute the then current franchise agreement.
4. TERMINATION Franchisee Please Initial Here ____
Franchisor may terminate the franchise agreement under the following basis.
A. Franchisee is in default of any provision in the franchise agreement.
B. Franchisee breaches any provision in the franchise agreement.
C. Franchisee fails to submit monthly payments.
D. Expiration of the natural term of franchise agreement without renewal.
E. Franchisor must give Franchisee thirty days written or electronic mail notice to correct deficiency.
Franchisee may terminate the franchise agreement under the following basis.
A. Franchisor is in default of any provision in the franchise agreement.
B. Expiration of the natural term of franchise agreement without renewal.
C. Franchisee must give Franchisor thirty days written or electronic mail notice to correct deficiency.
D. Franchisee may terminate the franchise agreement at any time by giving Franchisor thirty days written notice.
5. TERMINATION PROCEDURES Franchisee Please Initial Here ____
Upon termination of this franchise agreement for any reason:
Franchisee agrees to comply with all termination procedures now in effect or hereinafter adopted by the Franchisor.
6. PROPRIETARY MARKS Franchisee Please Initial Here ____
A. Franchisor reserves the right to approve all signs, stationary, business cards, forms and all other material used by the Franchisee.
B. Franchisor has the exclusive right to defend its proprietary marks. Franchisee agrees to cooperate to whatever extent necessary in protecting such marks.
7. ADVERTISING Franchisee Please Initial Here ____
Franchisee must submit all promotional and advertising materials to Franchisor for approval.
8. APPROVED SUPPLIERS Franchisee Please Initial Here ____
Franchisee is required to purchase travel services, travel products, advertising services, website services and technology services from suppliers approved by the Franchisor.
A. The Franchisor shall provide the Franchisee with a list of approved suppliers.
B. The Franchisor will revise the approved supplier list from time to time. Updated list of approved suppliers will be available to the Franchisee on a continuous basis.
C. Suppliers are evaluated to meet minimum standards established by the Franchisor.
D. The Franchisee shall obtain the Franchisor's written approval prior to the use of any supplier not previously approved by the Franchisor, and as a precondition to the granting of such approval, may require additional information regarding the services. The Franchisor will advise the Franchisee in writing within a reasonable time whether the requested supplier meet's the Franchisor's standards.
9. DEATH OR INCAPACITY OF FRANCHISEE Franchisee Please Initial Here ____
A. The franchise shall terminate upon the death of the Franchisee or the Franchisee being determined to be legally incompetent or the Franchisee becomes insolvent or the Franchisee is adjudicated bankrupt or the Franchisee is convicted of a felony.
B. The Franchisee's heir's or personal representatives may continue to operate the franchise providing all assignee's agree to the franchise agreement and all collateral agreements.
10. OBLIGATIONS OF THE FRANCHISOR Franchisee Please Initial Here ____
Prior to the opening of the franchise business, the Franchisor shall:
A. Provide unlimited consultation on the method of conducting the franchise business.
B. Establish Franchisee with an official travel agency allowing the Franchisee to deal directly with each travel company.
C. Registration of your agency for receiving industry mailings, e-mail broadcasts, literature, brochures and promotional materials.
D. Complete business implementation including state of the art reservation system.
E. Provide your agency with the most comprehensive and powerful sets of technology, sales and booking tools. These powerful yet flexible tools make it easy to provide your clients with service that is beyond their expectations.
During the operation of the franchise business, the Franchisor shall provide such continuing advice and support as it deems appropriate in its absolute discretion.
F. Provide unlimited consultation in order to maintain quality control.
G. On going business development, continuous training, product awareness and informational services.
H. Provide familiarization trips and participation in preferred supplier override commission programs.
I. The Franchisor offers continuous and unlimited assistance to Franchisee in connection with the travel agency operation of the franchised business.
J. The Franchisor does not impose a significant degree of control over the operation of the business by the Franchisee.
K. Provide e-promotions, e-newsletters, e-broadcasts, e-brochures and e-travel news.
11. OBLIGATIONS OF THE FRANCHISEE Franchisee Please Initial Here ____
A. Franchisee agrees to comply with all standards and procedures now in effect or hereinafter adopted by the Franchisor.
B. Franchisee agrees to comply with all federal, state, local and county laws regarding the operation of a travel agency.
12. TRAINING Franchisee Please Initial Here ____
A. Training is one of the greatest benefits that we offer to you and your staff. Enhancing skills and improving productivity is a strong commitment to providing your agency with quality learning opportunities. The training programs are designed to ensure efficiency in learning and support resources which will help you achieve a profitable partnership with all your travel suppliers. Web based training is a cost effective and easy way to provide travel professionals with unlimited knowledge. Twenty Four hour on line training is comprised of certification courses, product enhancement courses and specialist programs. Self paced learning and practice activities are interactive and fun.
B. The Franchisee will have the opportunity to attend local, regional, national and international trade shows, conventions and seminars.
C. Franchisee will learn advanced level sales, preferred supplier training, market and management training.
D. State of the art communication training and a complete automation and reservation system training program. Sales and reservations are the engine that drives your business. The more information that your agency has access to, the sooner that you can find the best itineraries with the best fares for your customers, the more success you will reach.
13. ASSIGNMENT BY FRANCHISOR Franchisee Please Initial Here ____
Franchisor or its owners may sell or assign all or any interest in the franchise agreement without written notification and without consent of the Franchisee. The franchise agreement is fully assignable by Franchisor and shall inure to the benefit of the assignee or other legal successor.
14. ASSIGNMENT BY FRANCHISEE Franchisee Please Initial Here ____
The Franchisee or its owners may sell or assign all or any interest in the ownership of the franchise or assets of the franchise business with the prior written consent of the Franchisor, which shall not be unreasonably withheld.
15. MODIFICATION Franchisee Please Initial Here ____
The Franchisor may modify the franchise agreement upon thirty days written or electronic notice to the Franchisee. Any notice delivered by mail or electronic mail shall be deemed delivered five days after mailing or electronic mailing.
16. INDEMNIFICATION Franchisee Please Initial Here ____
Franchisor will not be be liable for any debt or any other financial obligation of the Franchisee.
17. NOTICES FROM FRANCHISOR Franchisee Please Initial Here ____
Any and all notices shall be in writing and delivered personally, by mail or electronic mail. Any notice delivered by mail or electronic mail shall be deemed delivered five days after mailing or electronic mailing.
18. RESOLUTION OF CONTROVERSIES Franchisee Please Initial Here ____
Any controversy arising out of or relating to this agreement, or any duty created thereby, shall be resolved by the Franchisor. Failure by the Franchisee to comply with Franchisor will result in termination of the franchise agreement. Franchisee will receive initial franchise fee refund.
19. WAIVER Franchisee Please Initial Here ____
Failure of Franchisor to take action against a breach or default under this agreement shall not be construed as a waiver of the right to take action against such or similar breach or default.
20. CAVEAT Franchisee Please Initial Here ____
The success of the franchise business is very speculative and depends on many factors. Therefore, Franchisor does not make any representation or warranty as to the success of the Franchisee. Franchisor advises Franchisee to discuss the provisions of the franchise with an attorney, accountant and professional advisors. Franchisee acknowledges that a franchise disclosure document has been provided as required by the Federal Trade Commission and State Law.
FRANCHISEE (sign): ______________________
PRINT FIRST NAME: ______________________
PRINT LAST NAME: ______________________
Item 23: Receipts
ACKNOWLEDGEMENT OF RECEIPT BY PROSPECTIVE FRANCHISEE
THIS DISCLOSURE DOCUMENT SUMMARIZES CERTAIN PROVISIONS OF THE FRANCHISE AGREEMENT AND OTHER INFORMATION IN PLAIN LANGUAGE. READ THIS DISCLOSURE DOCUMENT AND ALL AGREEMENTS CAREFULLY. WE MUST PROVIDE THIS DISCLOSURE DOCUMENT TO YOU BY THE EARLIEST OF
1) FOURTEEN BUSINESS DAYS BEFORE THE SIGNING OF A BINDING AGREEMENT OR PAY ANY FEE.
2) YOU MUST ALSO RECEIVE A FRANCHISE AGREEMENT CONTAINING ALL MATERIAL TERMS AT LEAST FIVE BUSINESS DAYS BEFORE YOU SIGN.
THE UNDERSIGNED, PERSONALLY AND/OR AS AN OFFICER OR PARTNER OF THE PROPOSED FRANCHISE, DOES HEREBY ACKNOWLEDGE RECEIPT OF THE FRANCHISE DISCLOSURE DOCUMENT FOR PROSPECTIVE FRANCHISEE'S REQUIRED BY THE FEDERAL TRADE COMMISSION AND STATE LAW.
Print, Copy and Mail the entire Franchise Disclosure Document
Travel Lines Express 9858 Glades Road #208 Boca Raton Florida 33434
Home Based Travel Agent Business | Independent Travel Agent Program