What is the range for the estimated initial investment for construction, improvements, remodeling, and decorating costs for a Camp Margaritaville resort?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
d in connection with such transitions.
ITEM 7. ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Application Fee (1) | $75,000 | Lump sum | Upon executing Franchise Agreement | Us |
| PIP fee (2) | $0 - $5,000 | As agreed | When designing Resort | Us |
| Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
| ---------------------------------------------------------------------------------------------- | ------------------------------ | ---------------------- | --------------------------------------------------------------------------- | --------------------------------------------------------------------------- |
| TIP fee (3) | $0 - $10,000 | As agreed | When designing Pad | Us |
| Professional services fees (architect, design, market study, engineering, etc.) (4) | $100,000 - $800,000 | As agreed | When designing Resort | Us, architects, engineers, designers, and other professionals |
| Insurance and Permits, licenses, deposits, and related fees (5) | $50,000 - $150,000 | Lump Sum | Before construction begins and before Resort begins operation | Government authorities and utility companies |
| Training expenses, vendor and brand training (6) | $25,000 - $100,000 | As agreed | Before and during training | Us and third parties |
| Construction, improvements, remodeling, and decorating costs (7) | $1,000,000- $50,000,000 | Installments | Before and during construction | General contractor, suppliers and us |
| Technology (8) | $750,000- $1,250,000 | As agreed | Before and during construction | Suppliers and us |
| Website Set-Up | $8,750 - $38,750 | As agreed | Before opening | Us |
| CRS Set-Up (9) | $4,000 | As agreed | Before opening | Us |
| CRM Set-Up (10) | $3,000 | As agreed | Before opening | Us |
| Loyalty Program Set | $3,000 | As agreed | Before opening | Suppliers |
| Up (11) | ||||
| Furniture, fixtures, other fixed assets, and equipment (FF&E) (12) | $500,000- $3,000,000 | As agreed | Before and during construction | Suppliers |
| Operational Supplies and Equipment (OSE) (13) | $250,000 - $500,000 | As agreed | Before opening | Suppliers |
| Exterior signs | $300,000 - $400,000 | As agreed | As incurred | Suppliers |
| Type of expenditure | Amount | Method of Payment | When due | To whom payment is to be made |
| ------------------------------------------------------------------------------------------------------------------- | ---------------------------------- | ---------------------- | ---------------- | ------------------------------------- |
| Financial, tax, and legal | $600,000 - | As agreed | As incurred | Suppliers |
| costs (14) | $750,000 | |||
| Preopening Sales and | $125,000 - | As agreed | As incurred | Suppliers and us |
| Marketing (15) | $225,000 | |||
| Photography and | $45,000 - | As agreed | As incurred | Suppliers and us |
| Videography | $125,000 | |||
| Medallia Set-Up (16) | $2,500 | As agreed | Before opening | Us |
| Group Sales Referral | $300 | As agreed | Before opening | Suppliers and us |
| Platform (17) | ||||
| Financial Reporting | $10,000 - | As agreed | As incurred | Suppliers and us |
| System Set-Up (18) | $16,000 | |||
| Gift Card Program Set | $3,000 - | As agreed | As incurred | Suppliers |
| Up (19) | $10,000 | |||
| Day Pass Reservation | $300 | As agreed | As incurred | Suppliers and us |
| System Set-Up | ||||
| Contingency (20) | $350,000 - $500,000 | As agreed | As incurred | See Explanatory Note |
| Additional Funds – 3 Months (21) | $300,000 - $500,000 | As needed | As incurred | Se |
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 estimated initial investment for construction, improvements, remodeling, and decorating costs ranges from $1,000,000 to $50,000,000. This significant range reflects the variability in project scope and site conditions. These costs are paid in installments before and during construction to the general contractor, suppliers, and potentially to Camp Margaritaville itself.
Several factors contribute to the wide range in construction costs. These include the size and nature of the land, the type of construction and materials used, union involvement, regional cost variations, and competitive conditions. The cost will also vary depending on whether the resort is new construction, a remodel of an existing RV resort property, or an adaptive reuse of another type of structure. Remodels and adaptive reuses are generally on the lower end of the scale.
Camp Margaritaville notes that a newly constructed 150-pad resort from their prototype would cost between $11,250,000 to $33,750,000, which translates to $75,000 to $225,000 per key, excluding land costs. This estimate includes FBR Units, meeting and banquet facilities, public areas, site lighting, swimming pool, exercise room, landscaping, and exterior signs. Camp Margaritaville must approve the final plans, design, and specifications for the resort, and construction must adhere to their System Standards.
Prospective franchisees should carefully consider these factors and obtain detailed cost estimates specific to their planned location and resort design. Given the substantial investment required, it is crucial to develop a comprehensive business plan and financial projections with the assistance of an experienced accountant or financial advisor familiar with the lodging industry.