Should I buy a travel agency franchise or an independent agency?

Travel agencies earn mainly from commissions and service fees, so the question is what you pay for support and what you keep. A franchise or consortium sells access to suppliers, tools and a name. An independent agency sells you its clients and its habits. Compare them on fees, on who holds the client relationships, and on how the agency operates day to day.

What the brand or consortium provides

A larger group may offer better supplier arrangements, booking systems, training and marketing. Ask what is included and what costs extra. Then ask whether those supplier arrangements stay with the agency if ownership changes, because some depend on the group’s approval of the new owner. Get answers in writing before you rely on them.

Fees against commission income

Ask whether the franchise or group takes fees, a share of commissions, or both. Rebuild the agency’s earnings with those payments included, or, for an independent agency, with the technology and supplier costs you would need to cover on your own. Your accountant can put both versions on one basis so you can compare them fairly.

Client list and operating model

Find out who owns the client list. In some groups the data sits on the group’s platform, and in others it belongs to the agency. Also compare a storefront agency with a home-based or host-agency model. A storefront has rent but visibility. A home-based model has lower overhead but depends more on the advisor’s own network.

What an independent buyer keeps or replaces

• Keep: client records, repeat travellers and supplier contacts that belong to the agency.
• Replace: booking tools, training and marketing the group supplied.
• Confirm: which supplier agreements can be transferred to you.

The general comparison appears in should I buy a franchise or an independent business.