What fee must be paid to Camp Margaritaville if the franchisee needs an extension to the opening deadline?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ss in the locality, the suitability of the site, weather, the location, and condition of the premises (including the premises' former use) and the construction schedule for the Resort. You must open and begin operating the Resort within 24 months after signing the Franchise Agreement for a new Resort and 12 months after signing the Franchise Agreement for converted resorts (unless we agree to a longer period before we and you sign the Franchise Agreement). You also must meet various interim deadlines for the Resort's development. If you do not meet these requirements, then you must pay the $10,000 extension fee to us and request an extension, which we may grant or deny at our option. If we approve the extension, we will set a new opening deadline, the extension fee is non-refundable, and we may (at our option) require you to modify any previously-approved detailed plans, or renovation plans or the PIP or TIP (as applicable), to comply with the then
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–55)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee must pay a $10,000 extension fee if they need more time to open their resort beyond the initial deadlines. For a new resort, the standard opening timeline is 18 to 24 months after signing the Franchise Agreement, while for converted resorts, it's 6 to 12 months.
The extension is not automatically granted upon payment of the fee. Camp Margaritaville has the discretion to either approve or deny the extension request. If the extension is approved, Camp Margaritaville will set a new opening deadline. The $10,000 extension fee is non-refundable, regardless of whether the franchisee ultimately succeeds in opening the resort.
Furthermore, Camp Margaritaville retains the right to require modifications to previously approved plans to ensure compliance with the current system standards. Failure to open the resort by the required completion date, even with an extension, may result in the termination of the Franchise Agreement. This highlights the importance of careful planning and realistic timelines when developing a Camp Margaritaville franchise.