Are the Central Reservations System (CRS) set-up fees refundable for a Camp Margaritaville franchise?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Central Reservations System (CRS) set-up fee is not refundable. The initial fee to set up a Camp Margaritaville Resort on the CRS is $4,000. Franchisees must also agree to the CRS Terms of Use, which are incorporated by reference into the Technology Agreement attached as Exhibit E to the Franchise Agreement.

This means that a prospective Camp Margaritaville franchisee should consider the $4,000 CRS set-up fee as a sunk cost. Regardless of whether the franchise succeeds or fails, or if the franchisee terminates the agreement early, this fee will not be returned. This is a fairly standard practice in franchising, as initial set-up fees are typically used to cover the franchisor's costs in establishing the franchisee within their systems.

In addition to the CRS set-up fee, Camp Margaritaville franchisees can expect to pay other non-refundable initial fees for items such as website set-up, customer relationship management (CRM) system set-up, loyalty program set-up, and other technology-related systems. These fees, along with the initial franchise fee, contribute to the overall initial investment required to start a Camp Margaritaville franchise. Therefore, it is important for potential franchisees to carefully review all the initial fees and understand their non-refundable nature before signing the Franchise Agreement.