Under what condition related to pre-opening obligations and business opening will the payment of the application fee for a Camp Margaritaville franchise in Hawaii be deferred?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, a Hawaii Rider amends the standard franchise agreement. Specifically, the payment of the application fee for a Camp Margaritaville franchise in Hawaii is deferred until Camp Margaritaville has fulfilled its pre-opening obligations to the franchisee and the franchisee has opened their business.

This deferral is a specific requirement imposed by the Hawaii Department of Commerce and Consumer Affairs due to Camp Margaritaville's financial condition. This means that prospective franchisees in Hawaii will not be required to pay the application fee upfront, which can be a significant financial benefit.

This condition protects new franchisees by ensuring that Camp Margaritaville completes its pre-opening responsibilities before receiving the application fee. It also provides some assurance to the franchisee that the business is ready to open before they are required to pay this fee. This arrangement is not typical in the franchise industry, where initial fees are usually paid upfront.