Under what circumstances is the Camp Margaritaville Application Fee refundable?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Application Fee is generally non-refundable. The document explicitly states that the Application Fee is not refundable under any circumstances. This fee is calculated by multiplying $500 by the total number of overnight accommodation sites at the Resort, including RV sites, RV suites, and cabin rentals. For a resort with 150 overnight accommodations, the Application Fee amounts to $75,000 and is due upon execution of the Franchise Agreement.

Prospective franchisees should be aware that this non-refundable policy is a standard practice in franchising, as the franchisor incurs costs in evaluating the applicant and preparing the franchise agreement. However, the strictness of this policy can vary among franchisors. Some franchisors might offer a refund under very specific conditions, such as if the application is rejected by the franchisor.

Camp Margaritaville does mention circumstances where other fees, such as the Property Improvement Plan (PIP) fee or the Technology Improvement Plan (TIP) fee, may be waived or applied towards the Application Fee. However, even in these cases, the Application Fee itself remains non-refundable. This means that if a franchisee pays the PIP or TIP fee and it is later applied to the Application Fee, the portion of the Application Fee covered by the PIP or TIP fee is still not refundable.

Given the substantial amount of the Application Fee, potential Camp Margaritaville franchisees should carefully consider their qualifications and the suitability of their location before applying. Understanding the terms and conditions outlined in the Franchise Agreement is crucial to avoid any financial surprises. It would be prudent to seek legal and financial advice to fully comprehend the implications of this non-refundable fee.