What are the potential financial consequences if a Camp Margaritaville franchisee fails to open on time?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee may face several financial consequences for failing to open their resort on time. The franchisee must open and begin operating the Resort under the Camp Margaritaville Intellectual Property within 24 months after signing the Franchise Agreement for a new Resort and 12 months after signing the Franchise Agreement for converted resorts (unless Camp Margaritaville agrees to a longer period before the Franchise Agreement is signed). If the franchisee does not meet these deadlines, they must pay a $10,000 extension fee and request an extension. Camp Margaritaville has the option to grant or deny this extension. If the extension is approved, the $10,000 fee is non-refundable.

Additionally, if an extension is granted, Camp Margaritaville may require the franchisee to modify previously approved plans to comply with the current standards of the Camp Margaritaville System, potentially incurring further costs. If the Camp Margaritaville franchisee fails to open the Resort by the required completion date, Camp Margaritaville may terminate the Franchise Agreement.

Furthermore, the franchisee must indemnify Camp Margaritaville for costs and expenses incurred due to the failure to open on time. This includes amounts Camp Margaritaville pays to customers whose reservations are canceled. This could encompass a broad range of expenses, and the franchisee is responsible for covering these costs, which can significantly impact their financial obligations.