For Camp Margaritaville franchises in Maryland, when is the initial franchise fee due?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is added to Item 5:
The Maryland Attorney General's Office has imposed a deferral condition on us sue to Franchisor's financial condition; therefore, no fees are payable by you to us until all of our pre-opening obligations are completed and your business has opened.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, specifically the addendum for the state of Maryland, the initial franchise fee is deferred. This means that franchisees in Maryland are not required to pay the initial franchise fee until certain conditions are met.
Specifically, the addendum states that no fees are payable until all of Camp Margaritaville's pre-opening obligations to the franchisee are completed. Furthermore, the franchisee's business must be open before the initial franchise fee is due. This deferral is imposed by the Maryland Attorney General's Office due to the franchisor's financial condition.
This arrangement is beneficial for prospective Camp Margaritaville franchisees in Maryland as it reduces the upfront financial burden. It also provides some assurance that the franchisor will fulfill its pre-opening obligations before receiving the franchise fee. Franchisees should carefully confirm and document the completion of all pre-opening obligations and the opening date of their business to ensure compliance with the deferral terms.