Can the fees associated with the Technology used at Camp Margaritaville be changed?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Concurrent with signing this Franchise Agreement, Franchisee must enter into a franchisee participation agreement with Givex, the third-party provider of transaction processing and settlement
services for the Gift Card Program (the "Gift Card Participation Agreement"), which is incorporated by reference into the Technology Agreement attached hereto as Exhibit E. Franchisee shall be responsible for the set-up costs associated with the Gift Card Program (currently $3,000-$10,000 based on property system setup and available amenities) and any other costs that may be imposed by any PMS/POS provider. When a gift card is redeemed at the Resort, Franchisee shall incur a charge of 2% of the amount tendered if the gift card was purchased at the Resort or at any other Margaritaville-branded physical location. Franchisee shall incur a charge of 5% of the amount tendered if the gift card was purchased from Franchisor's website (currently Margaritaville.com/gift-cards) or from a non-branded (third party) location, such as a pharmacy, grocery store or travel agent. Such amount is remitted to Franchisor or its Affiliates and used to offset Franchisor's cost of the Gift Card Program. The set-up costs, on-going fees paid directly to the Gift Card Program vendor, if any, and gift card charges by Franchisor described herein are collectively referred to as the "Gift Card Fees". Franchisee must honor all Gift Card Program rules and policies. Franchisor reserves the right to change the Gift Card Program, the costs, the redemption reimbursement amounts, and the calculation factors at any time.
Section 4.12 Margaritaville Metasearch Program. Franchisee must participate in Margaritaville Metasearch, a booking channel that facilitates bookings through third-party websites, such as Trivago, Tripadvisor, Kayak, Wego, and Skyscanner, and search engines with travel capabilities such as Google and Bing. Metasearch is intended to support Franchisor's direct booking channel for the Camp Margaritaville System. The program is funded through a 15% commission collected by Franchisor on booked revenue (the "Margaritaville Metasearch Fees"). The commission amount will be sent monthly as a line item on the Resort's CRS invoice. In the event a reservation booked through Metasearch is canceled, the 15% commission will not be refunded. Franchisor centrally manages the types of sites it places inventory on for Metasearch. Metasearch is structured as a collective. All commissions go back into Metasearch, and a Metasearch analyst spends the commissions based on his/her analysis of demand and return on investment.
Section 4.13 Day Pass Reservations. Franchisee must use the day pass booking system provided by RealTime Reservations ("RTR"), which is Franchisor's required vendor. The RTR booking system allows non-Resort guests to book passes to access the amenities at the Resort for the day only. In order to participate in the RTR booking system, Franchisee is required to agree to the Day Pass Program Terms of Use incorporated by reference into the Technology Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, several technology-related fees are subject to change. Specifically, the fees associated with the Gift Card Program, the Day Pass Program via RealTime Reservations (RTR), and the Loyalty Program can be updated.
For the Gift Card Program, Camp Margaritaville retains the right to change the program, its costs, redemption reimbursement amounts, and calculation factors at any time. For the Day Pass Reservations through RTR, the one-time onboarding cost is currently $300, and ongoing fees consist of a 12% commission on revenue. These fees may increase based on increases in the underlying charges paid by Camp Margaritaville to RTR. Similarly, the Loyalty Program fees, which include a one-time set-up fee and ongoing loyalty fees calculated on a "Per Overnight Accommodation" basis, can be updated based on increases in the underlying charges paid by Camp Margaritaville for the Loyalty Program.
Additionally, Camp Margaritaville retains the right to make changes to and update the Brand Affinity and Perks Program at any time. While these changes should not lead to a significant increase in cost to the franchisee, additional costs may be incurred. In such cases, Camp Margaritaville will try to develop strategies to increase direct booking revenues. As a prospective franchisee, it's important to understand that these potential fee changes are part of the agreement and can impact the overall cost of operating the franchise.