Under what conditions might the Royalty Fee be reduced for a Camp Margaritaville franchisee?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ss Revenue, and all other revenue derived from services, FBR Units, and Amenities at the Resort for the remainder of the calendar year. The Royalty Fee is a uniform non-refundable fee, although in rare circumstances we may reduce the Royalty Fee for certain franchisees. In 2024, we allowed certain franchisees to retain, for a limited period, an advertising assistance allowance for their Resorts, consisting of a portion of the Gross Revenue that would otherwise have been payable as part of the Royalty Fee. No such reduction or advertising assistance is guaranteed or required. When determining whether to reduce the Royalty Fee, we might consider things like the Resort's location and market, its size and amenities, the economic and financial environment generally and in the Resort's market, your experience and willingness to develop multiple Margaritaville-affiliated resorts, and other relevant factors.
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- Marketing Fee. The marketing fee (the "Marketing Fee") provides for our marketing services and support.
Source: Item 6 — OTHER FEES (FDD pages 20–34)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, royalty fee reductions are possible, but not guaranteed. In 2024, Camp Margaritaville allowed certain franchisees to retain a portion of their gross revenue, which would normally be paid as part of the royalty fee, to be used as an advertising assistance allowance.
The decision to reduce the royalty fee is at the discretion of Camp Margaritaville. The document states that when determining whether to reduce the royalty fee, Camp Margaritaville might consider factors such as the resort's location and market, its size and amenities, the economic and financial environment in the resort's market, the franchisee's experience, and their willingness to develop multiple Camp Margaritaville-affiliated resorts.
The FDD also notes that Camp Margaritaville might negotiate some fees for franchisees agreeing to develop multiple Camp Margaritaville Resorts or acquiring existing Camp Margaritaville Resorts. However, outside these specific instances, the fees are generally uniform.