Richard Cromwell | Freedom Boat Club | Barrington, Newport, Portsmouth and Warwick
The pitch: Freedom Boat Club is a members-only boat club in the United States, Europe and Canada. It is considered the largest marine franchiser in America and allows its members to travel to franchised clubs in other locales. The company was founded in Sarasota, Fla., and has been in business since 1989.
Years in business: Opened initial franchise in Warwick in 2009
Employees: 25 employees
Cost to obtain franchise: $38,000 initial fee; $149,200-$458,700 initial investment; $7,500-$19,000 satellite fees; 6% ongoing royalty fee after first year; no net worth requirement; no liquid cash requirement
Before opening franchise: Cromwell has been in the marine industry since 1995. That is when he opened Maritime Solutions Inc., a boat sales, service and repair operation, in Portsmouth. That is the back of the house for Freedom Boat Club. He maintains the fleet with this business. His biggest customer is the membership of the Freedom Boat Club. Prior to owning and operating these businesses, he worked in the hospitality industry.
Reason for opening: Cromwell liked the idea of owning and operating a boat membership club. He thought it would be a nice supplement to Maritime Solutions. In 2009 there was not a lot of interest in this type of business, but he worked with the franchiser to help with the growing process. He now has more than 400 members and a fleet of 70 boats in three categories: center console, dual console and pontoon.
“It is a great way to go boating or learn about boating. We have members that graduate every year and buy their own boat. So, you get your feet wet before you jump into the deep end.“
“It has been a phenomenal year. We are having a record year. Boating is one of the few outlets that people have right now due to the pandemic. The demand has been overwhelming. Our business model is based on usage. People have more time now. They are going out on the water three or four times a week. Whereas in the past they would go out about three or four times a month.”
“We provide free training and licensing. We offer the Department of Environmental Management’s course. One of our captains is licensed to administer the test. That is a fringe benefit. We also have a captain service, and captains that will teach you how to fish. That is one of the happy things to watch; the smiles on the faces when they come back from fishing.”
“Being a member of the club takes away the headaches of owning and taking care of a boat. There is a lot involved with owning a boat. There is a lot of expense. The boat club takes that away. So, this gives members all the enjoyment and none of the headaches.”
Franchise owners interested in being included in an upcoming Franchisee feature can contact PBN Researcher Cassius Shuman at (401) 680-4884 or Shuman@PBN.com.