Originally Posted by SanDiego1K
I have bought several RTWs, both in the US and Egypt, with no such cancelation fee.
Most US agencies will impose a service charge of some kind these days now. This will be a norm eventually when airlines keep cutting commissions from TAs.
But the OP is thinking of cancelling his booking. That's why the agency wanted to charge a fee. If he went on with his booking, the fee would have been covered by the commission.