MARGARITAVILLE HOTELS & RESORTS

Item 7 in the 2025 FDD outlines the financial commitment starting with a $105,000 franchise fee for the proprietary Hotel System, encompassing trademarks, designs, and tech platforms. Ongoing costs bite harder: 5% royalty on gross revenue, 1.5% brand/ad fund (potentially up to 3% of Gross Rooms Revenue), a flat $3,350 monthly tech fee covering CRS, sales org, and websites, plus per-room extras like $12 for CRM and $10 for loyalty programs. With only 18 locations since franchising began in 2019, headquartered in Orlando, FL, the system's Item 19 disclosure reveals average unit performance for these upscale properties targeting vacationers and some corporate guests—but zero growth from 18 units in 2023 to 2024 signals caution in a cutthroat market.

One termination amid stability hints at decent franchisee retention, bolstered by 9 projected new units showing quiet expansion ambitions under parent Margaritaville Enterprises. For buyers eyeing hospitality, these figures mean scrutinizing high fixed costs against leisure-driven occupancy in destination spots; Item 19's revenue transparency helps model ROI, yet flat headcount underscores risks from economic dips hitting travel. Prospective investors should probe FDD Item 20 for litigation/transfer trends and validate projections against competitor resorts to gauge if this brand's escapism translates to enduring cash flow.