Compass by Margaritaville
Bottom line
- Total investment $10.2M – $37.4M including a $65K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Compass by Margaritaville unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Compass by Margaritaville franchisees operate upscale resort or hospitality destinations featuring Margaritaville-branded amenities, food & beverage, and leisure experiences. Day-to-day operations involve property management, guest services, F&B operations, entertainment programming, and maintaining brand standards across a large physical footprint.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
A capital-intensive resort/hospitality franchise with only 2 units, undisclosed financials, multiple legal disputes, regulatory compliance failures, and no territory protection represents extreme execution risk with questionable franchisor financial stability.
Score breakdown · what drove the 75 / 100 rating
- 01MEDExtremely high investment range ($10.2M–$37.4M) with zero disclosed average unit economics (no Item 19 revenue/income data)
- 02MINOROnly 2 operating units with unknown growth trajectory suggests failed or stalled system expansion
- 03HIGHGoing Concern = False indicates potential financial viability questions at franchisor level
- 04HIGHMultiple litigation cases including trademark disputes, deceptive practices lawsuits, and regulatory compliance failures (California administrative consent order 2020)
- 05MINORNo protected territory means franchisees face direct competition from other Compass locations
- 06MINORMargaritaville brand association carries reputational risk given parent company's past financial troubles and casual dining market headwinds
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Compass by Margaritaville · FDD (2024) PDF