Under what circumstances might the Royalty Fee be reduced for a Camp Margaritaville?

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.

• 1. Marketing Fee. The marketing fee (the "Marketing Fee") provides for our marketing services and support. Marketing services will be used to promote public awareness and usage of Camp Margaritaville Resorts facilities by implementing advertising, promotion, publicity, market research, and other marketing programs, training programs and related activities, and the production and distribution of Camp Margaritaville Resorts-related publications and directories ("Marketing Program").

Source: Item 6 — OTHER FEES (FDD pages 20–34)