Margaritaville Hotels & Resorts
Bottom line
- Total investment $22.1M including a $105K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100.
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 Margaritaville Hotels & Resorts unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Franchisees operate upscale resort and hotel properties branded under the Margaritaville name, managing daily operations including hospitality services, guest experiences, food and beverage offerings, and resort amenities. Franchisees handle marketing, staffing, maintenance, and customer relations while paying 5% royalties on gross revenue to the franchisor.
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 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
Margaritaville Hotels presents substantial due diligence concerns: extreme capital requirements without financial transparency, a stagnant 18-unit system with unresolved litigation, and a franchisor of questionable financial stability seeking two-decade commitments.
Score breakdown · what drove the 64 / 100 rating
- 01MINORExtremely high capital requirement ($22.1M+) with no Item 19 financial performance disclosure, making ROI validation impossible
- 02MINOROnly 18 units system-wide with unknown growth trajectory suggests stagnant or contracting franchise network
- 03HIGHMultiple litigation events including trademark disputes, conspiracy lawsuits, and regulatory violations indicate operational and legal instability
- 04HIGHGoing Concern status is False, creating questions about franchisor financial viability and long-term support
- 05MED5% royalty on undisclosed average revenues combined with massive upfront costs creates opacity around profitability thresholds
- 06MED20-year term locks franchisees into a relationship with a small, legally troubled franchisor with limited disclosure
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
19 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Margaritaville Hotels & Resorts · FDD (2025) PDF