Margaritaville Hotels & Resorts Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Margaritaville Hotels & Resorts is a hospitality franchise operating island-themed resorts and hotels inspired by the Margaritaville lifestyle. Franchisees own and operate the properties, managing guest services, food and beverage, and amenities.
FranchiseVerdict summary · 2026
A Margaritaville Hotels & Resorts franchise does not disclose total investment in its current FDD, including a $105K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $22.1M
- 62nd pct Lodging
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 18
- 27th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $22.1M including a $105K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited consolidated financials are for the parent/guarantor Margaritaville Holdings LLC (the franchisor Margaritaville Hotels & Resorts, LLC has no separate audited statements). FY2024 total revenues $104,634,176; FY2023 $92,488,263. Negative net worth reflects total partners' deficit of $(113,444,304).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- DATAItem 19 reports RevPAR and channel distribution rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Margaritaville Hotels & Resorts, LLC
- Parent company
- Margaritaville Enterprises, LLC
- Ultimate parent
- Margaritaville Holdings LLC
- CEO title
- Chief Executive Officer
- John Cohlan
- CEO experience
- 1997 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $104.6M
- 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
- CEO
- John Cohlan
- Headquarters
- FL
- Founded
- 2019
- FDD year
- 2025
- States available
- 8
Can you afford it, and what does the money buy?
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown26 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Feenot refundable | $105K | $105K | |
| PIP feenot refundable | $0 | $20K | |
| TIP feenot refundable | $0 | $10K | |
| Professional services fees (architect, design, market study, engineering, etc.)not refundable | $600K | $3.0M | |
| Insurance and Permits, licenses, deposits and related feesnot refundable | $50K | $150K | |
| Training expenses; vendor and brand trainingnot refundable | $50K | $200K | |
| Construction, improvements, remodeling, and decorating costsnot refundable | $15.0M | $200.0M | |
| Technologynot refundable | $1.3M | $2.0M | |
| Website Set-Upnot refundable | $23K | $53K | |
| 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 | $2.0M | $10.0M | |
| Operational Supplies and Equipment (OSE)not refundable | $1.0M | $2.5M | |
| Exterior signsnot refundable | $500K | $600K | |
| Financial, tax and legal costsnot refundable | $600K | $750K | |
| Pre-opening Sales and Marketingnot refundable | $200K | $350K | |
| Photography and Videographynot refundable | $55K | $125K | |
| Medallia Set-Upnot refundable | $3K | $3K | |
| Upsell Software Platformnot refundable | $800 | $800 | |
| Total initial investment | $22.1M | $221.3M |
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
- $22.1M
- Middle of category vs category
- Liquid capital req'd
- $300K – $500K
- Top 40% of category vs category
- Franchise fee
- $105K – $105K
- Bottom third — review vs category
- Royalty
- 5.0%
- percentage · 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 |
| Technology fee | $1K |
| Renewal fee | $50K |
| Inventory (initial) | $1.0M – $2.5M |
| Total fee load | 6.5% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Margaritaville Hotels & Resorts did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Margaritaville Hotels & Resorts unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
0%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Audited consolidated financials are for the parent/guarantor Margaritaville Holdings LLC (the franchisor Margaritaville Hotels & Resorts, LLC has no separate audited statements). FY2024 total revenues $104,634,176; FY2023 $92,488,263. Negative net worth reflects total partners' deficit of $(113,444,304).
Reported for a subset of outlets rather than the whole system
- Item 19 type
- RevPAR and channel distribution
- Sample size
- 10
- vs category median 99 · small
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 3 / 10
- vs category median 0 / 10 · above
Compared against 174 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.5% — below the Lodging average of 10.4%.
Disclosure
Item 19 reports RevPAR and channel distribution rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 20.0% CAGR over 3 years across 18 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Margaritaville Hotels & Resorts Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +20.0%
- Net unit change over 3 years
- 3-yr CAGR
- +20.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
- Termination rate
- 5.6%
- Franchisor-initiated terminations
- Ceased ops
- 5.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 8 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.
8
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
1) Boss Investments Ltd. v. Margaritaville of Bahamas et al. - trademark sub-license dispute, settled 2020 with dismissal with prejudice and royalty sharing agreement. 2) Shultz et al. v. Margaritaville Enterprises et al. - cottage owner fraud/tort claims, settled 2023 with mutual walk-away. 3) California Commissioner of Financial Protection v. Margaritaville Hotels & Resorts, LLC - failure to file exemption notices for 3 CA franchise sales, resolved by 2020 consent order with $7,500 penalty.
Largest disclosed settlement: $7,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINOROnly 18 units system-wide with unknown growth trajectory suggests stagnant or contracting franchise network
- 02HIGHMultiple litigation events including trademark disputes, conspiracy lawsuits, and regulatory violations indicate operational and legal instability
- 03HIGHGoing Concern status is False, creating questions about franchisor financial viability and long-term support
- 04MED5% royalty on undisclosed average revenues combined with massive upfront costs creates opacity around profitability thresholds
- 05MED20-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
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 13 |
| Mandatory arbitration | Yes |
| Arbitration location | Atlanta, Georgia |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 3 |
View Item 3 litigation summary
1) Boss Investments Ltd. v. Margaritaville of Bahamas et al. - trademark sub-license dispute, settled 2020 with dismissal with prejudice and royalty sharing agreement. 2) Shultz et al. v. Margaritaville Enterprises et al. - cottage owner fraud/tort claims, settled 2023 with mutual walk-away. 3) California Commissioner of Financial Protection v. Margaritaville Hotels & Resorts, LLC - failure to file exemption notices for 3 CA franchise sales, resolved by 2020 consent order with $7,500 penalty.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 33 hrs
- Training location
- Franchisor-selected Margaritaville-branded venue (offsite); plus on-site task force training
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- InfoGenesis
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: InfoGenesis
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Margaritaville Hotels & Resorts · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
What do Margaritaville Hotels & Resorts franchise owners earn?
Margaritaville Hotels & Resorts 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 Item 19 in the Margaritaville Hotels & Resorts FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Margaritaville Hotels & Resorts FDD and qualifies whose outlets they describe.
What is Margaritaville Hotels & Resorts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Margaritaville Hotels & Resorts (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 Margaritaville Hotels & Resorts franchise locations are there?
As of their most recent FDD filing, Margaritaville Hotels & Resorts has 18 total units in the United States, including 18 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Margaritaville Hotels & Resorts a good franchise to buy?
FranchiseVerdict rates Margaritaville Hotels & Resorts as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), 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.