factual

How is the Application Fee calculated for a Camp Margaritaville franchise?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

you will pay us or our affiliates fees ranging from $141,850 - $267,850.

Application Fee

You must complete our Franchise Application, to help us evaluate your qualifications to become a franchisee. The Application Fee is calculated by multiplying $500 by the total number of overnight accommodation sites at the Resort, including RV sites, RV suites and cabin rentals. For a Resort with 150 overnight accommodations, the Application Fee is $75,000. The Application Fee is due upon execution of the Franchise Agreement. The Application Fee is not refundable under any circumstances.

Property Improvement Plan

If you want to convert or adapt an existing RV resort to a Camp Margaritaville Resort, we charge an additional non-refundable fee ranging from $0 to $5,000 to prepare the property improvement plan ("PIP") for the resort. If we prepare a PIP for your Resort, you must pay the PIP fee before we schedule the PIP inspection. In some circumstances, we may waive the PIP fee or apply the PIP fee towards the payment of your Application Fee, but we are not obligated to do so. Factors that may influence our decision to waive the PIP fee include whether the adaptation or change is one that we have previously experienced limiting our administrative costs and the number of PIPs you have previously submitted.

Source: Item 5 — INITIAL FEES (FDD pages 18–20)

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Application Fee is determined by multiplying $500 by the total number of overnight accommodation sites at the resort. These sites include RV sites, RV suites, and cabin rentals. For example, a Camp Margaritaville resort with 150 overnight accommodations would have an Application Fee of $75,000. This fee is due upon execution of the Franchise Agreement.

It is important to note that the Application Fee is non-refundable under any circumstances. This means that even if the franchise agreement is terminated or the franchisee does not proceed with opening the Camp Margaritaville location, the $75,000 (or other calculated amount) will not be returned. This is a standard practice in franchising, as the fee covers the franchisor's costs of evaluating the applicant and processing the application.

Additionally, if a prospective franchisee is converting or adapting an existing RV resort to a Camp Margaritaville location, they may be charged a separate, non-refundable fee ranging from $0 to $5,000 to prepare a Property Improvement Plan (PIP). While Camp Margaritaville may, in some circumstances, waive the PIP fee or apply it towards the Application Fee, they are not obligated to do so. Factors influencing this decision include prior experience with similar adaptations and the number of PIPs previously submitted by the franchisee.

Prospective franchisees should carefully consider the total number of accommodation sites they plan to have at their Camp Margaritaville location, as this directly impacts the Application Fee. They should also inquire about the likelihood of needing a Property Improvement Plan and whether the associated fee can be waived or applied towards the Application Fee, especially if converting an existing RV resort.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.