In 2024, how many Camp Margaritaville franchisees transferred their franchise agreements for unopened outlets?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Note: Franchisees sometimes restructure their organizations and assign franchise agreements from one company to another within the same ownership group. We do not consider these restructuring transactions to be "transfers" because the ultimate ownership and control group does not change. Further this table only refers to outlets that were transferred after opening. No franchisees transferred their franchise agreements for unopened outlets in 2022 or 2023. As noted above, one franchisee transferred its franchise agreement for an opened outlet in 2024. One franchisee transferred its franchise agreement for an unopened outlet in 2024.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 69–71)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, one franchisee transferred their franchise agreement for an unopened outlet in 2024. This information is crucial for potential franchisees as it provides insight into the stability and transferability of franchise agreements within the Camp Margaritaville system.
The FDD clarifies that these transfers specifically refer to situations where the ownership and control of the franchise change hands. Internal restructuring within the same ownership group is not considered a transfer. This distinction is important because it gives prospective franchisees a clearer picture of actual franchise resales to new owners.
The fact that there was a transfer of an unopened outlet in 2024 suggests that franchisees may, under certain circumstances, choose to exit the system even before their location begins operations. This could be due to various reasons such as financial difficulties, changes in personal circumstances, or a reassessment of their business goals. Understanding the reasons behind such transfers can help potential franchisees evaluate the risks and challenges associated with investing in a Camp Margaritaville franchise.
It is also worth noting that the FDD states that there were no transfers of franchise agreements for unopened outlets in 2022 or 2023. The presence of one such transfer in 2024 could indicate a change in the circumstances of franchisees or the overall health of the franchise system, prompting further investigation by potential investors.