What is the 'Merchant Program' that Camp Margaritaville participates in?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
e to procure the required technology from specific providers or from a list of approved providers. In such event, Franchisor and Franchisee shall amend the Technology Agreement to incorporate such new required technology. Franchisee must obtain Franchisor's prior approval for installation of any technology platform or system not included in the System Standards.
Section 4.11 Gift Card Program. Franchisee must participate in the program for the sale and processing of gift cards at participating locations (the "Gift Card Program") that Franchisor has established. Concurrent with signing this Franchise Agreement, Franchisee must enter into a franchisee participation agreement with Givex, the third-party provider of transaction processing and settlement
services for the Gift Card Program (the "Gift Card Participation Agreement"), which is incorporated by reference into the Technology Agreement attached hereto as Exhibit E. Franchisee shall be responsible for the set-up costs associated with the Gift Card Program (currently $3,000-$10,000 based on property system setup and available amenities) and any other costs that may be imposed by any PMS/POS provider. When a gift card is redeemed at the Resort, Franchisee shall incur a charge of 2% of the amount tendered if the gift card was purchased at the Resort or at any other Margaritaville-branded physical location. Franchisee shall incur a charge of 5% of the amount tendered if the gift card was purchased from Franchisor's website (currently Margaritaville.com/gift-cards) or from a non-branded (third party) location, such as a pharmacy, grocery store or travel agent. Such amount is remitted to Franchisor or its Affiliates and used to offset Franchisor's cost of the Gift Card Program. The set-up costs, on-going fees paid directly to the Gift Card Program vendor, if any, and gift card charges by Franchisor described herein are collectively referred to as the "Gift Card Fees". Franchisee must honor all Gift Card Program rules and policies. Franchisor reserves the right to change the Gift Card Program, the costs, the redemption reimbursement amounts, and the calculation factors at any time.
Section 4.12 Margaritaville Metasearch Program. Franchisee must participate in Margaritaville Metasearch, a booking channel that facilitates bookings through third-party websites, such as Trivago, Tripadvisor, Kayak, Wego, and Skyscanner, and search engines with travel capabilities such as Google and Bing. Metasearch is intended to support Franchisor's direct booking channel for the Camp Margaritaville System. The program is funded through a 15% commission collected by Franchisor on booked revenue (the "Margaritaville Metasearch Fees"). The commission amount will be sent monthly as a line item on the Resort's CRS invoice. In the event a reservation booked through Metasearch is canceled, the 15% commission will not be refunded. Franchisor centrally manages the types of sites it places inventory on for Metasearch. Metasearch is structured as a collective. All commissions go back into Metasearch, and a Metasearch analyst spends the commissions based on his/her analysis of demand and return on investment.
Section 4.13 Day Pass Reservations. Franchisee must use the day pass booking system provided by RealTime Reservations ("RTR"), which is Franchisor's required vendor. The RTR booking system allows non-Resort guests to book passes to access the amenities at the Resort for the day only. In order to participate in the RTR booking system, Franchisee is required to agree to the Day Pass Program Terms of Use incorporated by reference into the Technology Agreement. Franchisee must pay Franchisor a one-time on-boarding and implementation cost for the RTR booking system, which is currently $300, as well as ongoing fees that consist of a 12% commission on revenue produced by the day pass reservation system. Franchisor will collect payment on the sales made through the system and issue payment to Franchisee for all such revenue produced net of commission.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville FDD, there is no mention of a specific 'Merchant Program' that Camp Margaritaville franchisees are required to participate in. However, the FDD does mention several programs that franchisees must participate in. These include the Margaritaville Metasearch program, a booking channel that facilitates bookings through third-party websites, funded by a 15% commission on booked revenue. Franchisees must also participate in the Gift Card Program, and the Loyalty Program.
Camp Margaritaville franchisees are also required to use a day pass booking system provided by RealTime Reservations (RTR), with a one-time onboarding cost of $300 and ongoing fees consisting of a 12% commission on revenue produced by the system. Additionally, franchisees are automatically enrolled as members of the American Hotel and Lodging Association (AHLA) at their expense, although they can opt out.
It is important to note that Camp Margaritaville can negotiate agreements with specific providers of various programs, platforms, and systems to benefit the Resort and the Camp Margaritaville System. Franchisees are required to participate in such programs on a basis consistent with other Camp Margaritaville Resorts and pay the then-current fee charged by each applicable vendor for such program. A prospective franchisee should inquire with the franchisor about any potential 'Merchant Programs' and their specific requirements and costs.