For Camp Margaritaville franchises in North Dakota, when are franchise fees due?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the standard franchise fee payment schedule is modified for franchises in North Dakota. Specifically, Item 5 of the disclosure document is altered to state that franchise fees are deferred. This deferral lasts until Camp Margaritaville fulfills its initial obligations to the franchisee and the franchisee has commenced business operations.

This modification is favorable for prospective Camp Margaritaville franchisees in North Dakota. Rather than paying the franchise fee upfront, franchisees can delay payment until Camp Margaritaville has met its initial obligations and the franchisee has started their business. This lessens the initial financial burden on the franchisee and aligns the fee payment with the commencement of revenue generation.

It is important for prospective franchisees to understand exactly what Camp Margaritaville's 'initial obligations' are, as these must be fulfilled before the franchise fees become due. The franchisee should also clarify what constitutes 'commencement of business' to ensure both parties have the same understanding of when the fees will be due. This deferred payment structure could significantly aid in managing the initial investment and cash flow for a new Camp Margaritaville franchise in North Dakota.