Besides the fees in Article VI of the Camp Margaritaville agreement, what other fees are Franchisees subject to?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 Rental Royalty. Franchisee shall pay to Franchisor, within thirty (30) days following each calendar month of the Term following the Opening Date of the Vacation Rentals (or prorated portion thereof), royalties in the amount of five percent (5%) of Gross Rental Revenue ("Rental Royalty").
- 5.3 Dwelling Royalty. Franchisee shall pay to Franchisor, within thirty (30) days following the close of the calendar month of the closing of any Dwelling sale pursuant to this Rider, royalties in the amount of three percent (3%) of the Gross Dwelling Revenue ("Dwelling Royalty").
- 5.6 Re-Sale Royalty. If applicable law permits the payment of royalties on the re-sale of any Dwelling, Franchisor shall receive a re-sale royalty of one percent (1%) of the sales price. Each seller shall be required by the Franchisee to make available to Franchisor the closing statement that reflects the purchase price paid by each purchaser so that Franchisor can accurately confirm the re-sale royalty amount.
- (f) Training Fees.
Franchisee must pay Franchisor's then-current fees for any onsite or offsite training that the Resort's personnel attend, including, but not limited to, the Training Program.
Franchisee shall also be responsible for all costs associated with Resort personnel related to the Training Program or other training as required pursuant to this Section 3.01, including without limitation, wages, salaries, housing, travel-related expenses and per diem charges incurred by the trainees, subject to a mutually agreed budget.
Except as otherwise specified herein, if the training is conducted onsite at the Resort, then Franchisee must cover the costs of lodging and living expenses for all persons conducting such training, including, but not limited to Franchisor personnel.
In addition to the Marketing Program, Franchisor will undertake the ongoing development and maintenance of a Website for Camp Margaritaville Resorts (and, at Franchisor's option, other Margaritaville-affiliated hotels and resorts) (the "Resort System Website"), in consideration for a monthly fee (the "Property Website Package Fee").
Franchisor will provide each Camp Margaritaville Resort a separate webpage on the Resort System Website which shall be converted to a "Resort Website" in exchange for Franchisee's payment of a one-time Resort System Website setup fee, which is currently $8,750 if the Resort does not contain Dwellings and $38,750 if the Resort does contain Dwellings.
- (b) If Franchisee wants an extension of the Opening Deadline, Franchisee must submit a written request and a $10,000 extension fee to Franchisor before the Opening Deadline.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, franchisees are subject to several fees beyond those outlined in Article VI of the franchise agreement. These additional fees cover various aspects of the franchise operation, including royalties, training, website maintenance, and potential extension fees.
The fees include ongoing royalties: a Rental Royalty of 5% of Gross Rental Revenue and a Dwelling Royalty of 3% of Gross Dwelling Revenue. If applicable law permits, there is also a re-sale royalty of 1% of the sales price on any Dwelling re-sale. Franchisees also pay training fees for onsite or offsite training programs attended by resort personnel. These fees cover the costs associated with the training itself, as well as wages, salaries, housing, travel, and per diem charges for the trainees. If the training is onsite, the franchisee is responsible for lodging and living expenses for the trainers.
Camp Margaritaville franchisees must also pay a monthly Property Website Package Fee for the ongoing development and maintenance of the Resort System Website. There is also a one-time Resort System Website setup fee, which is currently $8,750 if the Resort does not contain Dwellings and $38,750 if the Resort does contain Dwellings.
Finally, if a franchisee requires an extension to the opening deadline, they must submit a written request and a $10,000 extension fee to Camp Margaritaville. This fee is non-refundable if the extension is approved. These additional fees can significantly impact a franchisee's overall investment and operating costs, so prospective franchisees should carefully consider these expenses when evaluating the financial viability of a Camp Margaritaville franchise.