For a Camp Margaritaville franchise in Hawaii, when is the initial franchise fee due?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
HAWAII RIDER TO MARGARITAVILLE RV RESORTS, LLC FRANCHISE AGREEMENT
THIS RIDER (the "Rider") is effective as of, 20 (the "Agreement Date"), and amends the Franchise Agreement dated, 20 (the "Agreement"), between MARGARITAVILLE RV RESORTS, LLC (the "Franchisor") and (the "Franchisee"). 1. Precedence and Defined Terms. This Rider is an integral part of, and is incorporated into, the Agreement. Nevertheless, this Rider supersedes any inconsistent or conflicting provisions of the Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Agreement. 2. Initial Franchise Fee. The payment of the initial franchise fee is deferred until all of our pre-opening obligations to you are completed and your business has opened.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, the standard payment schedule for the initial franchise fee is modified for franchisees in Hawaii. Specifically, the Hawaii Rider to the franchise agreement states that the payment of the initial franchise fee is deferred. This means a new Camp Margaritaville franchisee in Hawaii is not required to pay the initial franchise fee upon signing the agreement, which is the typical arrangement.
Instead, the payment is delayed until two conditions are met. First, Camp Margaritaville must have completed all of its pre-opening obligations to the franchisee. Second, the franchisee's Camp Margaritaville business location must be open and operating. This deferral is a specific condition imposed by the Hawaii Department of Commerce and Consumer Affairs due to Camp Margaritaville's financial condition, offering some financial protection to new franchisees in Hawaii.
This arrangement benefits the franchisee by reducing the upfront financial burden and ensuring that Camp Margaritaville fulfills its obligations before the franchisee has to pay the initial fee. It also provides some assurance that the business is actually operational before the fee is due. Prospective franchisees should confirm all pre-opening obligations are clearly defined in the franchise agreement to avoid any ambiguity.