For Camp Margaritaville franchises in Illinois, under what condition will the payment of the Application Fee be 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 Camp Margaritaville's 2025 Franchise Disclosure Document, for franchises in Illinois, the payment of the Application Fee is deferred until Camp Margaritaville has met its pre-opening obligations to the franchisee, and the franchisee has commenced doing business. This deferral requirement was imposed by the Illinois Attorney General's Office due to Camp Margaritaville's financial condition.
This means that a prospective Camp Margaritaville franchisee in Illinois will not be required to pay the Application Fee upfront. Instead, the fee is deferred until Camp Margaritaville fulfills its obligations to prepare the franchisee for opening, and the franchisee has actually started operating the business.
This deferral provides a financial benefit to the franchisee, as it reduces the initial investment required to start the franchise. It also offers some protection to the franchisee, as they are not required to pay the fee until Camp Margaritaville has demonstrated its commitment to supporting the franchisee's success. The FDD also states that no statement, questionnaire, or acknowledgement signed by the franchisee can waive claims under state franchise law or disclaim reliance on franchisor statements, further protecting the franchisee.