factual

What is the purpose of the Marketing Fee for Camp Margaritaville franchisees?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Marketing Fee. The marketing fee (the "Marketing Fee") provides for our marketing services and support. Marketing services will be used to promote public awareness and usage of Camp Margaritaville Resorts facilities by implementing advertising, promotion, publicity, market research, and other marketing programs, training programs and related activities, and the production and distribution of Camp Margaritaville Resorts-related publications and directories ("Marketing Program"). We may periodically increase or decrease the amount of the Marketing Fee, but it shall not exceed 3% of Gross Revenue during the initial term of the Franchise Agreement. In no event shall we increase the Marketing Fee by more than 0.5% of Gross Revenue per year of the term of the Franchise Agreement. We will provide you with 60 days' advance written notice of any change to the Marketing Fee amount.

Source: Item 6 — OTHER FEES (FDD pages 20–34)

What This Means (2025 FDD)

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Marketing Fee is designated for marketing services and support. This fee is used to promote public awareness and usage of Camp Margaritaville Resorts facilities through various marketing initiatives. These initiatives include advertising, promotion, publicity, market research, and other marketing programs. Additionally, the Marketing Fee supports training programs and the production and distribution of Camp Margaritaville Resorts-related publications and directories.

The Marketing Fee is subject to periodic increases or decreases by Camp Margaritaville, but it cannot exceed 3% of Gross Revenue during the initial term of the Franchise Agreement. Furthermore, any annual increase is capped at 0.5% of Gross Revenue. Camp Margaritaville is required to provide franchisees with 60 days' advance written notice before implementing any changes to the Marketing Fee amount.

For a prospective Camp Margaritaville franchisee, this means that a portion of their Gross Revenue will be allocated to a Marketing Fee, which will be used to fund marketing efforts aimed at increasing brand awareness and driving business to their resort and other locations. Franchisees should be aware of the potential for the Marketing Fee to fluctuate, although there are limitations on how much it can increase. Understanding how the Marketing Fee is managed and the specific marketing activities it supports is crucial for franchisees to assess the value and potential return on investment of this fee.

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.