Is a reduction or advertising assistance related to the Royalty Fee guaranteed for Camp Margaritaville franchisees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2024, we allowed certain franchisees to retain, for a limited period, an advertising assistance allowance for their Resorts, consisting of a portion of the Gross Revenue that would otherwise have been payable as part of the Royalty Fee.
No such reduction or advertising assistance is guaranteed or required.
When determining whether to reduce the Royalty Fee, we might consider things like the Resort's location and market, its size and amenities, the economic and financial environment generally and in the Resort's market, your experience and willingness to develop multiple Margaritaville-affiliated resorts, and other relevant factors.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a reduction or advertising assistance related to the Royalty Fee is not guaranteed. While in 2024, Camp Margaritaville allowed certain franchisees to retain an advertising assistance allowance for their Resorts, this was a limited-time arrangement. The allowance consisted of a portion of the Gross Revenue that would typically be paid as part of the Royalty Fee.
The FDD specifies that Camp Margaritaville is not required to offer such reductions or assistance. However, when deciding whether to reduce the Royalty Fee, Camp Margaritaville may consider factors such as the Resort's location and market, its size and amenities, the economic and financial environment, the franchisee's experience, and their willingness to develop multiple Camp Margaritaville-affiliated resorts.
This means that prospective Camp Margaritaville franchisees should not rely on receiving any reduction in the Royalty Fee or advertising assistance. Any such arrangements are at the discretion of Camp Margaritaville and are not guaranteed. Franchisees should factor the full Royalty Fee into their financial projections and business plans.