factual

When is the initial franchise fee due for a Camp Margaritaville franchise?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS ADDENDUM (the “Addendum”) amends the Franchise Disclosure Document of MARGARITAVILLE RV RESORTS, LLC for its Camp Margaritaville Resorts Franchise pursuant to the Hawaii Franchise Investment Law.

    1. PAYMENT OF THE APPLICATION FEE WILL BE DEFERRED UNTIL WE HAVE MET OUR PRE-OPENING OBLIGATIONS TO YOU, AND YOU HAVE OPENED YOUR BUSINESS. THE HAWAII DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS IMPOSED THIS DEFERRAL REQUIREMENT DUE TO OUR FINANCIAL CONDITION.
    1. 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.

HAWAII RIDER TO MARGARITAVILLE RV RESORTS, LLC FRANCHISE AGREEMENT

Source: Item 23 — RECEIPTS (FDD pages 72–406)

What This Means (2025 FDD)

According to the 2025 Camp Margaritaville Franchise Disclosure Document, the standard procedure is that the initial application fee is due upon signing the franchise agreement. However, there is an addendum for franchisees in Hawaii which states that payment of the application fee will be deferred until Camp Margaritaville has met its pre-opening obligations to the franchisee and the franchisee has opened their business. This deferral was imposed by the Hawaii Department of Commerce and Consumer Affairs due to Camp Margaritaville's financial condition.

For prospective Camp Margaritaville franchisees outside of Hawaii, the initial franchise fee will be due at the time of signing the franchise agreement. Franchisees in Hawaii will not be required to pay the application fee until certain pre-opening obligations have been met and the business is open.

It is important to note that the Hawaii addendum specifically states that it supersedes any other term of any document executed in connection with the franchise. This means that for Hawaii franchisees, the deferral of the application fee is a legally binding condition, regardless of what other documents might state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.