Does the initial investment chart for Camp Margaritaville include estimates for third-party development or management fees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
We assume that you will manage the Resort's development yourself, so this chart does not include estimates for third party development or management fees.
We require that you use a licensed, locally qualified project manager, purchasing agent, and general contractor.
We also require that you use our designer, currently designated as McBride Designs, or another designer approved by us.
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 initial investment chart does not include estimates for third-party development or management fees. The FDD states that the initial investment estimates assume that the franchisee will manage the Resort's development themselves. However, Camp Margaritaville requires franchisees to use a licensed, locally qualified project manager, purchasing agent, and general contractor, as well as their designer, McBride Designs, or another designer approved by them.
This means that while the initial investment chart does not explicitly list third-party development or management fees, franchisees will incur costs associated with hiring these required professionals. These costs should be factored into the overall budget for opening a Camp Margaritaville franchise. Prospective franchisees should consider the fees for project managers, purchasing agents, general contractors, and designers when planning their initial investment.
Therefore, it is crucial for potential Camp Margaritaville franchisees to conduct thorough due diligence and consult with experienced professionals to develop a comprehensive business plan and financial projections. This will help ensure they have a clear understanding of all costs involved in developing and operating a Camp Margaritaville Resort, including those not explicitly listed in the initial investment chart.