Is there a guarantee of a reduction or advertising assistance related to the Royalty Fee for Camp Margaritaville?
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, there is no guarantee of a reduction or advertising assistance related to the Royalty Fee. While Camp Margaritaville, in 2024, allowed certain franchisees to retain an advertising assistance allowance for a limited time, this is not a guaranteed or required practice. This allowance consisted of a portion of the Gross Revenue that would typically be paid as part of the Royalty Fee.
The decision to reduce the Royalty Fee is at the discretion of Camp Margaritaville. They may consider factors such as the Resort's location and market, its size and amenities, the economic and financial environment in the Resort's market, the franchisee's experience, and their willingness to develop multiple Margaritaville-affiliated resorts.
This lack of guarantee means that prospective franchisees should not rely on the possibility of a reduced Royalty Fee or advertising assistance when making their investment decision. It is essential to factor in the full Royalty Fee amount when assessing the financial viability of a Camp Margaritaville franchise. Franchisees should inquire about the specific conditions under which a reduction might be considered, but understand that such arrangements are not assured.