What is the definition of 'Marketing Fee' for Camp Margaritaville?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Marketing Fee is a payment franchisees make to Camp Margaritaville for marketing services and support. These services aim to increase public awareness and usage of Camp Margaritaville Resorts facilities. This is achieved through various means, including advertising, promotion, publicity, market research, training programs, and the creation and distribution of Camp Margaritaville Resorts-related publications and directories, collectively known as the Marketing Program.

The Marketing Fee is subject to change, but Camp Margaritaville states that it will not exceed 3% of Gross Revenue during the initial term of the Franchise Agreement. Furthermore, Camp Margaritaville cannot increase the Marketing Fee by more than 0.5% of Gross Revenue per year of the Franchise Agreement's term. Camp Margaritaville is obligated to provide franchisees with 60 days' advance written notice of any changes to the Marketing Fee amount.

For a prospective franchisee, this means that a portion of their revenue will be allocated to a marketing fund managed by Camp Margaritaville. While the franchisee benefits from the marketing efforts, they have limited control over how the funds are spent. The cap on the Marketing Fee provides some predictability, but franchisees should still budget for potential increases and carefully monitor the effectiveness of the marketing programs. Franchisees should also pay close attention to the 60-day notice period for any fee changes to adjust their financial planning accordingly.