Under what condition will Camp Margaritaville refund the Extension Fee?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
you have previously submitted. If you pay us a TIP fee, it will not be refundable.
Extension Fee
You must start and complete construction and open the Resort according to the timetables referenced in Section 2.08 of the Franchise Agreement. We may terminate the Franchise Agreement if you fail to meet the required timetable. You may request one or more extensions of time by giving us written notice and paying a $10,000 fee (the "Extension Fee"). We will inform you of the length of the extension if and when we grant it. We will refund the Extension Fee
Source: Item 5 — INITIAL FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee may request an extension to the construction and opening deadlines outlined in Section 2.08 of the Franchise Agreement. This request must be made in writing and include payment of a $10,000 Extension Fee.
Camp Margaritaville will only refund the Extension Fee if the franchisor denies the franchisee's request for an extension. If Camp Margaritaville grants the extension, the $10,000 Extension Fee is non-refundable, meaning the franchisee will not receive the money back under any circumstances.
This policy is fairly standard in franchising, as extension fees are often used to cover the franchisor's administrative costs and lost revenue associated with the delay. Franchisees should carefully consider their construction timelines and potential delays before requesting an extension, as there is no guarantee it will be granted, and the fee is forfeited if the extension is approved.