What happened in 2024 regarding the Royalty Fee for certain Camp Margaritaville franchisees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty Fee is a uniform non-refundable fee, although in rare circumstances we may reduce the Royalty Fee for certain franchisees.
In 2024, we allowed certain franchisees to retain, for a limited period, an advertising assistance allowance for their Resorts, consisting of a portion of the Gross Revenue that would otherwise have been payable as part of the Royalty Fee.
No such reduction or advertising assistance is guaranteed or required.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, in 2024, Camp Margaritaville allowed certain franchisees to retain a portion of their gross revenue, which would normally be paid as part of the royalty fee. This was designated as an advertising assistance allowance for their resorts and was in effect for a limited time.
This reduction or advertising assistance is not guaranteed to franchisees. Camp Margaritaville may consider factors such as the resort's location, market, size, amenities, the economic environment, the franchisee's experience, and their willingness to develop multiple Camp Margaritaville-affiliated resorts when determining whether to reduce the royalty fee.
This type of temporary royalty fee reduction is not uncommon in franchising, especially for new locations or those experiencing financial difficulties. However, prospective Camp Margaritaville franchisees should not rely on receiving such a reduction and should carefully review the terms of the franchise agreement to understand the standard royalty fee obligations.