When is the Dwelling Royalty fee paid for Camp Margaritaville Dwellings?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
All Camp Margaritaville Resorts offering Dwellings must pay the dwelling royalty fee equal to 3% of the gross proceeds received by you for the sale of each Dwelling to be paid at the closing of the sale of the Dwelling from the third-party buyer, as such gross proceeds are listed on the HUD 1 statement or as reflected as the "Due to Seller at Closing" on Line 01, "Sales Price of Property" of a Closing Disclosure ("Gross Dwelling Revenue").
The Dwelling Royalty is in addition to the other amounts listed in Item 6.
Any agreement with any third-party purchasers of Dwellings shall include terms providing that we may be entitled to receive a royalty based on the revenues received by such purchaser from any re-sale of the Dwellings.
We and you shall use good faith efforts to agree on such royalty rate.
For avoidance of doubt, the obligation to pay any such re-sale royalty shall be the obligation of the owner and not your obligation.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Dwelling royalty fee, which is 3% of the gross proceeds from the sale of each Dwelling, is due at the closing of the sale. This payment is made by the franchisee from the proceeds received from the third-party buyer. The gross proceeds are listed on the HUD 1 statement or reflected as "Due to Seller at Closing" on Line 01, "Sales Price of Property" of a Closing Disclosure.
This royalty is in addition to any other fees outlined in Item 6 of the FDD. The franchise agreement stipulates that any agreement with third-party purchasers of Dwellings must include terms that allow Camp Margaritaville to receive a royalty on any resale of the Dwellings. However, the obligation to pay any such re-sale royalty falls on the owner, not the franchisee.
For a prospective Camp Margaritaville franchisee, this means that when selling Dwellings, 3% of the gross sales price must be remitted to the franchisor at the time the sale is finalized. This fee is separate from other royalties and fees associated with operating a Camp Margaritaville Resort, such as the Lodge Royalty or Marketing Fee. It is important to factor this cost into the pricing strategy for Dwellings to ensure profitability.