Can the amount of the Marketing Fee for a Camp Margaritaville be increased or decreased?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- Marketing Fee. The marketing fee (the "Marketing Fee") provides for our marketing services and support. Marketing services will be used to promote public awareness and usage of Camp Margaritaville Resorts facilities by implementing advertising, promotion, publicity, market research, and other marketing programs, training programs and related activities, and the production and distribution of Camp Margaritaville Resorts-related publications and directories ("Marketing Program"). We may periodically increase or decrease the amount of the Marketing Fee, but it shall not exceed 3% of Gross Revenue during the initial term of the Franchise Agreement. In no event shall we increase the Marketing Fee by more than 0.5% of Gross Revenue per year of the term of the Franchise Agreement. We will provide you with 60 days' advance written notice of any change to the Marketing Fee amount.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchisor, at its discretion, can adjust the Marketing Fee. This fee supports marketing services and promotes Camp Margaritaville Resorts through advertising, promotions, market research, and related activities.
However, the FDD stipulates that the Marketing Fee cannot exceed 3% of Gross Revenue during the initial term of the Franchise Agreement. Furthermore, any annual increase to the Marketing Fee is capped at 0.5% of Gross Revenue.
Camp Margaritaville must provide franchisees with a 60-day advance written notice before implementing any changes to the Marketing Fee amount. This advance notice allows franchisees to prepare for the adjustment and understand its impact on their financial planning.