Can other Camp Margaritaville franchisees be required to pay a different Marketing Fee than me?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently do not, and are not required to, maintain the Marketing Fee in a separate account from our other money. We are not required to expend any specific funds from the Marketing Fee on the area or territory for your Resort. Other franchisees may not be required to pay the Marketing Fee, may be required to pay a different Marketing Fee, or may be required to contribute to a different advertising fund. We have no obligation to make expenditures from the Marketing Fee that are equivalent or proportionate to your Marketing Fee, ensure that you benefit directly or proportionately or in any amount from the placement of advertising, or ensure that any advertising impacts or penetrates your area. In the calendar year ended December 31, 2024, 18.36% of the Marketing Fees were used for digital media promotion, including websites, social, email marketing, and digital ads; 2.30% for creative services and content development, including graphic design, video production and podcast; 38.58% for events, including sweepstakes and contests, charitable events, and pickleball tournaments; 5.10% for public relations, 20.97% for resort performance support, including photoshoots, customer service email support, 13.53% for media support from Radio Margaritaville, and 1.15% for administration. The foregoing figures have been rounded to the second decimal place. If we do not spend all of the Marketing Fee in the calendar year which it accrues, then those funds will roll over to be expended in the following year. We may have the collections and expenditures audited, with the expenses of the audit being paid for out of the Marketing Fee, by an independent certified public accountant we select. We will provide you with an unaudited statement of the operations of Marketing Fee expenditures within 30 days of your written request. Any amounts that we or our affiliates contribute to the Marketing Fee will be considered a loan and we and/or our affiliates will have the right to be reimbursed from the Marketing Fee in any amounts that we advance to the Marketing Program. There are no advertising councils composed of franchisees. However, we may form these advertising councils. You are not required to participate in an advertising cooperative.
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, other franchisees may be required to pay a different Marketing Fee. The document states that other franchisees may not be required to pay the Marketing Fee at all, may be required to pay a different Marketing Fee, or may be required to contribute to a different advertising fund. This means that the amount you pay for the Marketing Fee may not be the same as what other franchisees pay.
Camp Margaritaville is not required to maintain the Marketing Fee in a separate account from their other money. The franchisor is not required to expend any specific funds from the Marketing Fee on the area or territory for your Resort. Furthermore, Camp Margaritaville has no obligation to make expenditures from the Marketing Fee that are equivalent or proportionate to your Marketing Fee, ensure that you benefit directly or proportionately or in any amount from the placement of advertising, or ensure that any advertising impacts or penetrates your area.
In 2024, Camp Margaritaville allocated Marketing Fees as follows: 18.36% for digital media promotion, 2.30% for creative services and content development, 38.58% for events, 5.10% for public relations, 20.97% for resort performance support, 13.53% for media support from Radio Margaritaville, and 1.15% for administration. If Camp Margaritaville does not spend all of the Marketing Fee in the calendar year which it accrues, then those funds will roll over to be expended in the following year. These figures are rounded to the second decimal place.
Camp Margaritaville may have the collections and expenditures audited, with the expenses of the audit being paid for out of the Marketing Fee, by an independent certified public accountant they select. Franchisees will be provided with an unaudited statement of the operations of Marketing Fee expenditures within 30 days of written request. Any amounts that Camp Margaritaville or its affiliates contribute to the Marketing Fee will be considered a loan and they will have the right to be reimbursed from the Marketing Fee in any amounts that they advance to the Marketing Program.