For a Camp Margaritaville franchise in Illinois, under what condition is the application fee deferred?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of the Application Fee will be deferred until we have met our pre-opening obligations to you, and you have commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to our financial condition. No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, for franchisees in Illinois, the payment of the application fee is deferred until Camp Margaritaville has fulfilled its pre-opening obligations to the franchisee and the franchisee has commenced business operations. This deferral is a requirement imposed by the Illinois Attorney General's Office due to Camp Margaritaville's financial condition.
This condition means that prospective Camp Margaritaville franchisees in Illinois will not be required to pay the application fee, which is $500 per Overnight Accommodation, upfront. Instead, the fee is deferred until Camp Margaritaville has met its obligations, such as providing training, site selection assistance, and other pre-opening support, and the franchisee has actually started operating their Camp Margaritaville location.
This deferral provides a financial benefit to franchisees in Illinois, as it reduces their initial investment and aligns the payment of the application fee with the commencement of business operations. It also offers some protection to the franchisee, as they are not paying the fee until Camp Margaritaville has fulfilled its pre-opening responsibilities. Franchisees should confirm exactly what Camp Margaritaville's pre-opening obligations are and ensure they are fulfilled before paying the application fee.