Under what conditions will Camp Margaritaville defer the initial franchise fee for a Washington franchisee?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
you a disclosure document, in a form containing the information that the commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
You must sign a general release if you renew or transfer your franchise. California Corporations Code §31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§310000 through 31516). Business and Professions Code §20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§20000 through 20043).
The Antitrust Law Section of the Office of the California Attorney General views maximum price agreements as per se violations of the Cartwright Act.
The maximum rate of interest chargeable under California law is 10% annually.
Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and unenforceable:
- (a) Representations made by the franchisor or its personnel or agents to a prospective franchisee.
- (b) Reliance by a franchisee on any representations made by the franchisor or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
The registration of this franchise does not constitute approval, recommendation, or endorsement by the commissioner.
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR MARGARITAVILLE RV RESORTS, LLC STATE OF HAWAII
THIS ADDENDUM (the "Addendum") amends the Franchise Disclosure Document of MARGARITAVILLE RV RESORTS, LLC for its Camp Margaritaville Resorts Franchise pursuant to the Hawaii Franchise Investment Law.
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- THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISL
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, there is no mention of the initial franchise fee being deferred for franchisees in Washington state. However, the document does state that for Hawaii franchisees, payment of the application fee will be deferred until Camp Margaritaville has met its pre-opening obligations to the franchisee, and the franchisee has opened their business. This deferral requirement was imposed by the Hawaii Department of Commerce and Consumer Affairs due to Camp Margaritaville's financial condition.
This type of deferral is not a common practice in the franchise industry, as initial fees are typically required upfront to support the franchisor's initial investment in setting up the franchisee. The fact that Hawaii requires this deferral due to Camp Margaritaville's financial condition could be a red flag for potential franchisees. It suggests that the franchisor may be experiencing financial difficulties, which could impact their ability to provide adequate support to franchisees.
Prospective franchisees in Washington should inquire directly with Camp Margaritaville about any potential for fee deferral or alternative financing options. They should also carefully review Camp Margaritaville's financial statements and seek professional advice to assess the financial health of the franchisor before making any investment decisions.