conditional

Under what conditions can a Camp Margaritaville franchisee reduce monthly fees due to I-Sites?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

akes, Franchisee must also participate in and use, in the manner that Franchisor specifies, all advertising, marketing, and promotional activities, materials and programs that Franchisor periodically requires for the Camp Margaritaville System. Without limiting the foregoing, subject to Section 5.03(b) and Section 6.03, Franchisee must advertise and promote the Resort in a commercially reasonable manner.

Section 5.12 Resort System Website. In addition to the Marketing Program, Franchisor will undertake the ongoing development and maintenance of a Website for Camp Margaritaville Resorts (and, at Franchisor's option, other Margaritaville-affiliated hotels and resorts) (the "Resort System Website"), in consideration for a monthly fee (the "Property Website Package Fee"). Franchisor will provide each Camp Margaritaville Resort a separate webpage on the Resort System Website which shall be converted to a "Resort Website" in exchange for Franchisee's payment of a one-time Resort System Website setup fee, which is currently $8,750 if the Resort does not contain Dwellings and $38,750 if the Resort does contain Dwellings. In such event, the Resort Website shall be deemed part of the Resort System Website. Franchisee must periodically provide Franchisor (or its designee) all information and other materials concerning the Resort that Franchisor periodically requests relating to the Resort Website and promptly notify Franchisor whenever any information concerning the Resort on the Resort Website is no longer accurate. By providing Resort-related information and materials, Franchisee is representing that such information and materials are accurate and not misleading and do not infringe any third party's intellectual property or other rights. Franchisor has the final decision about all information or materials appearing on the Resort System Website, including the Resort Website. Franchisor owns all intellectual property rights and other rights in and to the Resort System Website, including the URL and all information and materials on the Resort Website, the log of "hits" by visitors, and any personal or business data that visitors supply (except as otherwise provided in this Agreement), or the Resort System Website obtains. In exchange for Franchisee's payment of the Property Website Package Fee, and after development and launch, Franchisee will be given access to maintain and control Franchisee's Resort Website on the Resort System Website, under Franchisor's guidelines and restrictions. Franchisor may implement and periodically modify System Standards for the Camp Margaritaville System Website, use the Property Website Package Fee to develop or maintain the Resort System Website and/or its content, and discontinue the Resort System Website and/or any of its content (including separate webpages for participating Camp Margaritaville Resorts) at any time.

Section 5.13 Website Restrictions. Unless and until Franchisee obtains Franchisor's prior approval, Franchisee may not develop, maintain or authorize any Website or other electronic medium, including any apps (other than the Resort System Website) that has the word "Margaritaville," any similar word, or any of the Camp Margaritaville Intellectual Property, as part of its domain name or URL or that accepts reservations for the Resort (other than through an approved link to a Resort System Website) or otherwise sells any products or services associated with the Resort or any of the Camp Margaritaville Intellectual Property. Franchisee may not develop, maintain, or authorize any other Website, app, distribution platform, other online presence or other electronic medium that describes or in any other way promotes the Resort or displays any of the Camp Margaritaville Intellectual Property.

Source: Item 23 — RECEIPTS (FDD pages 72–406)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, Camp Margaritaville franchisees are required to pay a monthly fee for a webpage on the Resort System Website called the "Property Website Package Fee." The FDD does not specify any conditions under which a franchisee could reduce this monthly fee.

However, the document does state that franchisees must participate in the Margaritaville Metasearch program, which facilitates bookings through third-party websites and search engines. This program is funded through a 15% commission collected by Camp Margaritaville on booked revenue, known as the "Margaritaville Metasearch Fees." These fees are sent monthly as a line item on the Resort's CRS invoice, and are not refunded if a reservation is canceled. All commissions go back into Metasearch, and a Metasearch analyst spends the commissions based on his/her analysis of demand and return on investment.

Additionally, franchisees must use the RealTime Reservations (RTR) day pass booking system and pay a one-time onboarding fee of $300, along with ongoing fees consisting of a 12% commission on revenue produced by the day pass reservation system. These fees may increase based on the underlying charges paid by Camp Margaritaville to RTR. While these sections outline various fees associated with online presence and booking systems, they do not mention any conditions for reducing the Property Website Package Fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.