What is the current transition fee for Camp Margaritaville if the franchisee changes the Management Company?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
n, covenants governing Franchisor's Confidential Information and non-competition covenants ("Management Rider"). Notwithstanding the foregoing, Franchisee acknowledges and agrees that compliance with the terms and obligations of this Agreement shall be Franchisee's responsibility even though Franchisee may retain a Management Company. If Franchisee changes the Management Company it is using to manage the Resort during the Term of this Agreement, then Franchisee shall pay a transition fee to Franchis
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, if a franchisee changes the Management Company managing their resort during the term of the agreement, they must pay a transition fee to Camp Margaritaville. This fee is intended to offset the costs Camp Margaritaville incurs in evaluating the new Management Company. The current transition fee is $5,000.
However, Camp Margaritaville retains the right to increase this fee. This increase would account for any rise in Camp Margaritaville's expenses related to evaluating the incoming Management Company. This provision allows Camp Margaritaville to adjust the fee to reflect the actual costs of due diligence and assessment.
This fee is separate from any other fees associated with the franchise agreement, such as application fees or training fees. It is specifically triggered by the decision to change the Management Company and serves to cover Camp Margaritaville's evaluation expenses. Prospective franchisees should factor this potential cost into their operational budget, especially if they anticipate needing to change Management Companies during their franchise term.