Is the Royalty Fee uniform for all Camp Margaritaville franchisees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty Fee is a uniform non-refundable fee, although in rare circumstances we may reduce the Royalty Fee for certain franchisees.
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, the Royalty Fee is generally uniform, but there are exceptions. The Royalty Fee is typically non-refundable. However, Camp Margaritaville may, in rare circumstances, reduce the Royalty Fee for certain franchisees.
In 2024, Camp Margaritaville allowed some franchisees to retain an advertising assistance allowance for a limited time. This allowance consisted of a portion of the Gross Revenue that would normally be paid as part of the Royalty Fee. However, the FDD states that this type of reduction or advertising assistance is not guaranteed or required.
When deciding whether to reduce the Royalty Fee, Camp Margaritaville might 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 Margaritaville-affiliated resorts. This indicates that while the Royalty Fee is generally uniform, Camp Margaritaville retains the discretion to adjust it based on specific circumstances and negotiations with individual franchisees.