Compass by MargaritavilleFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Compass by Margaritaville franchise requires a total initial investment of $10.2M – $37.4M, including a $65K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $10.2M – $37.4M
- 39th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 2
- 10th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
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.
- Verdict F (Bottom Quintile) with a risk score of 82/100.
- 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
- Legal entity
- Compass Margaritaville, L.L.C.
- Parent company
- Margaritaville Enterprises, LLC
- Incorporated in
- DE
- HQ
- 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $74.9M
- vs $92.5M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- John Cohlan
- Headquarters
- FL
- Founded
- 1997
- FDD year
- 2024
- States available
- 2
FDD Item 7 · 2024 filing · 23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Feenot refundable | $65K | $65K | |
| PIP fee (Property Improvement Plan)not refundable | $0 | $5K | |
| TIP fee (Technology Improvement Plan)not refundable | $0 | $10K | |
| Professional services fees (architect, design, market study, engineering)not refundable | $450K | $700K | |
| Insurance and Permits, licenses, deposits, and related feesnot refundable | $50K | $150K | |
| Training fees and expenses vendor and brand trainingnot refundable | $35K | $150K | |
| Construction, improvements, remodeling, and decorating costsnot refundable | $5.0M | $30.0M | |
| Technologynot refundable | $550K | $830K | |
| Website Set-Upnot refundable | $12K | $30K | |
| CRS Set Upnot refundable | $5K | $5K | |
| CRM Set-Upnot refundable | $13K | $13K | |
| Loyalty Program Set-Upnot refundable | $5K | $5K | |
| Furniture, fixtures, other fixed assets, and equipment (FF&E)not refundable | $1.8M | $2.1M | |
| Operational Supplies and Equipment (OSE)not refundable | $500K | $1.0M | |
| Exterior signsnot refundable | $200K | $250K | |
| Financial, tax, and legal costsnot refundable | $600K | $750K | |
| Pre-opening Sales and Marketingnot refundable | $150K | $250K | |
| Photography and Videographynot refundable | $40K | $125K | |
| Medallia Set-Upnot refundable | $3K | $3K | |
| Financial Reporting System Set-Upnot refundable | $10K | $16K | |
| Total initial investment | $10.2M | $37.4M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $10.2M – $37.4M
- Better than avg vs category
- Liquid capital req'd
- $300K – $500K
- Better than avg vs category
- Franchise fee
- $65K – $65K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Renewal fee | $30K |
| Inventory (initial) | $500K – $1.0M |
| Total fee load | 6.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Compass by Margaritaville Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
8 case reference(s): 1 pending, 7 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 82 / 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
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Area of Protection |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 3 |
View Item 3 litigation summary
8 case reference(s): 1 pending, 7 settled.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 33 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- InfoGenesis
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: InfoGenesis
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Compass by Margaritaville · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Compass by Margaritaville franchise?
The total investment to open a Compass by Margaritaville franchise ranges from $10.2M – $37.4M, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Compass by Margaritaville franchise owners earn?
Compass by Margaritaville does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Compass by Margaritaville's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Compass by Margaritaville (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Compass by Margaritaville franchise locations are there?
As of their most recent FDD filing, Compass by Margaritaville has 2 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Compass by Margaritaville a good franchise to buy?
FranchiseVerdict rates Compass by Margaritaville as a F-grade franchise with a risk score of 82 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.