What is the impact of municipal requirements on tap or impact fees for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ffset service costs relating to the new development), tap fees (charges for connecting to existing water or sewer lines), and various business licenses. Landlords sometimes pay some of the tap or impact fees, and the amount depends on municipal requirements and the final Resort configuration. Any liquor license obtained must include beer, wine, and full spirits, as allowable under Applicable Law in the Resort's jurisdiction. Additionally, you are required to obtain (i) a SiriusXM Radio commercial rights license to play Radio Margaritaville and other theme-appropriate channels and/or a subscription to our audiovisual vendor;
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 34–40)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the tap or impact fees associated with establishing a resort are influenced by municipal requirements and the final configuration of the resort. These fees are one-time charges levied by the government to offset service costs related to new developments, including charges for connecting to existing water or sewer lines. The FDD indicates that landlords may sometimes cover a portion of these fees.
The document does not provide a specific estimate for tap or impact fees due to wide variations among geographic areas and sites. This means the cost can differ significantly depending on the location of the Camp Margaritaville resort and the specific requirements imposed by the local municipality. These fees are part of the broader category of "Permits, licenses, deposits, and related fees" that franchisees must account for in their initial investment.
Prospective Camp Margaritaville franchisees should carefully investigate the tap and impact fees applicable to their chosen location as part of their due diligence. They should also clarify with the landlord, if applicable, whether the landlord will cover any portion of these fees. Given the potentially significant impact of these fees on the overall initial investment, franchisees should consult with experienced financial advisors to develop accurate financial projections for their specific resort.