How are the fees determined that a Camp Margaritaville franchisee must pay Margaritaville in consideration of the provided services?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
, after 14 days of training at the Resort, then the Task Force may stay longer until Franchisee is able to demonstrate compliance with System Standards, as determined in Franchisor's sole discretion. In such event, Franchisee will be required to pay $500 per day per trainer for each additional day the Task Force remains until
Franchisee becomes compliant with System Standards, in addition to the Task Force's additional expenses associated with their extended stay.
- (c) Annual Margaritaville Revenue & Marketing Summit. Franchisor hosts the Annual Margaritaville Revenue and Marketing Summit (the "Marketing Summit") at a Margaritaville-branded hotel or resort of Franchisor's choice. Franchisee's marketing leaders, sales leaders and revenue leaders are required to attend the Marketing Summit. The Marketing Summit currently costs $399 per person, plus all costs associated with travel and lodging expenses while at the Marketing Summit. The Marketing summit costs per person may increase over time if Franchisor's underlying costs to host the Marketing Summit increase.
- (d) Additional Training. At various times throughout the Term, including prior to Opening Date, Franchisor may conduct conferences, programs, webinars, teleconferences, regional or national conventions or meetings, onsite training by experienced personnel of other Camp Margaritaville Resorts or other Margaritaville-branded venues, or additional or refresher training sessions on matters related to the Camp Margaritaville System. Franchisor will determine the duration, curriculum, and location of such additional training programs, which may take the form of web-based training modules, webinars, seminars, in-person training, or on-site training. Franchisee's Key Personnel, Owners and other Resort personnel that Franchisor designates must attend additional training. Franchisor may also, at its option, provide other optional training programs from time to time during the term. Any such training will be provided at Franchisor's expense.
- (e) Optional Training. Franchisee may request additional training be provided to Resort personnel. Franchisor, in its discretion, may provide such requested training at Franchisee's expense. Any specific training, guidance or assistance that Franchisor provides does not create an obligation (whether by course of dealing or otherwise) to continue providing that specific training, guidance or assistance, all of which Franchisor may periodically modify.
- (f) Training Fees. Franchisee must pay Franchisor's then-current fees for any onsite or offsite training that the Resort's personnel attend, including, but not limited to, the Training Program. Franchisee shall also be responsible for all costs associated with Resort personnel related to the Training Program or other training as required pursuant to this Section 3.01, including without limitation, wages, salaries, housing, travel-related expenses and per diem charges incurred by the trainees, subject to a mutually agreed budget. Except as otherwise specified herein, if the training is conducted onsite at the Resort, then Franchisee must cover the costs of lodging and living expenses for all persons conducting such training, including, but not limited to Franchisor personnel.
Section 3.02 System Standards Manual. Franchisor shall provide Franchisee access to the electronic media and/or written materials reflecting the then-current System Standards (the "Manual") during the Term. Franchisee must comply with the terms of the Manual and any Supplements to the Manual (defined below), as Franchisor periodically modifies it. The Manual and any Supplements to the Manual may include electronic media and/or written materials and Franchisee agrees to monitor and access any updates to the Manual, System Standards, or other aspects of the Camp Margaritaville System. Subject to Section 4.19, Franchisor may make additions to, deletions from, and modifications to the Manual and the System Standards ("Supplements") from time to time and in any form or fashion, including:
(a) altering the products, accounting and computer systems, forms, policies, and procedures of the Camp Margaritaville System;
- (b) adding, modifying, or substituting the equipment, signs, trade dress, and other Resort characteristics that Franchisee is required to use or display (subject to the limitations set forth in this Agreement);
- (c) implementing new programs and policies, which may require Franchisee to incur additional expenses, purchase new equipment or supplies, or pay additional reasonable fees;
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, franchisees are subject to various fees for services provided by the franchisor. These fees are determined in several ways, depending on the specific service rendered.
For the Annual Margaritaville Revenue & Marketing Summit, attendance is mandatory for marketing, sales, and revenue leaders. The current cost is $399 per person, in addition to travel and lodging expenses. This cost may increase if the franchisor's expenses for hosting the summit rise. Franchisees must also pay the franchisor's current fees for any onsite or offsite training that the resort's personnel attend, including the Training Program. Franchisees are responsible for all costs associated with their personnel attending training, such as wages, salaries, housing, travel, and per diem charges, subject to a mutually agreed budget. If training is conducted onsite at the resort, the franchisee must cover lodging and living expenses for all trainers, including franchisor personnel.
Camp Margaritaville franchisees also participate in a Resort System Website, for which they pay a one-time setup fee of $8,750 if the Resort does not contain Dwellings and $38,750 if the Resort does contain Dwellings. Franchisees also participate in the Loyalty Program, which includes payment of a one-time set-up fee, as well as ongoing loyalty fees, calculated generally on a "Per Overnight Accommodation" basis. If the Task Force, which assists in pre-opening training, stays longer than 14 days because the franchisee has not demonstrated compliance with System Standards, the franchisee will be required to pay $500 per day per trainer for each additional day, in addition to the Task Force's additional expenses associated with their extended stay.
Prospective Camp Margaritaville franchisees should carefully consider these fees and expenses, as they can significantly impact the overall cost of operating the franchise. It is important to factor in potential increases in costs, such as those associated with the Marketing Summit or Loyalty Program, and to budget accordingly. Understanding these fee structures is crucial for assessing the financial viability of a Camp Margaritaville franchise.