Under what circumstances will a Camp Margaritaville franchisee be charged a fee for a Quality Assurance Audit?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
) The foregoing items (1)-(4) shall be referred to as the "Quality Assurance Audit".
- (i) Standards for Passage. The score required to pass any Quality Assurance Audit shall be set from time to time by Franchisor and communicated in the Manual.
- (ii) Timing. Franchisor may conduct such audits as frequently as Franchisor determines in its sole discretion.
- (iii) Costs. Franchisee shall be responsible for the costs of lodging, food and beverage, and other related living expenses for inspectors during Quality Assurance Audits. Except such costs, Quality Assurance Audits conducted in the ordinary course of business shall be free of char
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are generally responsible for covering the costs of lodging, food, beverage, and other living expenses for inspectors during Quality Assurance Audits. However, the FDD states that the Quality Assurance Audits conducted in the ordinary course of business are free of charge, except under specific circumstances.
A Camp Margaritaville franchisee will be charged a $5,000 fee for each additional Quality Assurance Audit if their resort fails an initial audit. This fee will be charged until the resort demonstrates compliance with Camp Margaritaville's standards. The franchisor retains the right to change or increase this fee at their discretion during the term of the franchise agreement, providing written notice to the franchisee of any such changes.
In addition to Quality Assurance Audits, Camp Margaritaville may implement other quality control measures, including guest comment cards and staff surveys, and system-wide secret shopper reports. Failure to meet the required standard for any other quality assurance measure may also result in additional Quality Assurance Audits, which will be conducted and paid for according to the terms outlined in the FDD. If Camp Margaritaville determines that a franchisee's Quality Assurance Audit is unsatisfactory, the franchisee may be required to participate in a Guest Satisfaction Improvement Program, which involves additional training, meetings, webinars, and audits, with associated costs.