For Camp Margaritaville, under what conditions are franchise fees deferred?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is added to Item 5:
The Maryland Attorney General's Office has imposed a deferral condition on us sue to Franchisor's financial condition; therefore, no fees are payable by you to us until all of our pre-opening obligations are completed and your business has opened.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Maryland Attorney General's Office has imposed a deferral condition due to the franchisor's financial condition. Under this condition, franchisees in Maryland do not have to pay any fees to Camp Margaritaville until all pre-opening obligations are completed and the franchisee's business has opened.
This deferral of fees is specific to franchisees in Maryland and is a result of the Attorney General's assessment of Camp Margaritaville's financial condition. This means that prospective franchisees in Maryland may have a reduced initial financial burden compared to franchisees in other states. However, it is important to note that this deferral is temporary, and franchisees will eventually be responsible for paying all required fees once their Camp Margaritaville location is open and operating.
This condition provides a significant benefit to new Camp Margaritaville franchisees in Maryland, as it allows them to delay the payment of franchise fees until their business is up and running. This can help to alleviate some of the financial pressures associated with starting a new franchise and give franchisees more time to generate revenue before having to pay fees to the franchisor. Prospective franchisees should carefully review the terms of the franchise agreement and any addenda to fully understand their obligations and rights.