When is the Rental Royalty payment due to the Franchisor from the Camp Margaritaville Franchisee?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 16.03 Franchisee Fee Obligations. Upon the expiration or earlier termination of this Agreement for any reason, all accrued and unpaid Royalties and Marketing Fees due at the time of expiration or termination shall become due and payable within 30 days following the later of such expiration or termination.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, all accrued and unpaid royalties, including rental royalties, and marketing fees that are due upon the expiration or earlier termination of the Franchise Agreement for any reason, shall become due and payable within 30 days following the later of such expiration or termination.
This means that if a Camp Margaritaville franchise agreement ends, whether by its natural expiration date or earlier termination, the franchisee is obligated to pay all outstanding royalties and marketing fees within 30 days of that termination or expiration date. This includes any rental royalties that may be outstanding at the time of termination.
For a prospective Camp Margaritaville franchisee, this highlights the importance of maintaining accurate financial records and ensuring timely payment of all fees throughout the term of the agreement. Franchisees should be aware that any outstanding financial obligations will become immediately due upon termination or expiration of the agreement, potentially creating a significant financial burden if not properly managed.