Margaritaville Hotels & Resorts Franchise Cost, Revenue & Review 2026
- Investment
- $22.1M – $221.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
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 requires a total initial investment of $22.1M – $221.3M, including a $105K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $22.1M – $221.3M
- 61st pct Lodging
- Avg gross sales
- N/A
- Outlet subsetProjection
- 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 median · 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 – $221.3M including a $105K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports RevPAR and channel distribution rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (1 opened, 0 closed); 6 signed but not yet open (Item 20).
- 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
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Margaritaville Holdings LLC
- FDD Item 1, page 9 of the 2025 FDD
- 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.
Same owner · FDD Item 1, page 9
2 other brands on this site name Margaritaville Holdings LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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?
Entry cost runs 1268% above the typical lodging franchise.
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 – $221.3M
- 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%
- 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
No Item 19 revenue figure for Margaritaville Hotels & Resorts is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Margaritaville Hotels & Resorts unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
Reported for a subset of outlets rather than the whole system
An occupancy metric, not unit revenue
- Item 19 type
- RevPAR and channel distribution
- Sample size
- 10
- vs category median 98 · small
- 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 175 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 median of 8.5%.
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 medians
How Margaritaville Hotels & Resorts Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 6
- 0.33 per open outlet · Item 20 Table 5
- 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)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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).
ⓘ 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
- 03MED5% royalty on undisclosed average revenues combined with massive upfront costs creates opacity around profitability thresholds
- 04MED20-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 | No territory protection |
| 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
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Margaritaville Hotels & Resorts franchise?
The total investment to open a Margaritaville Hotels & Resorts franchise ranges from $22.1M – $221.3M, with an initial franchise fee of $105K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Margaritaville Hotels & Resorts franchise owners earn?
Item 19 of the Margaritaville Hotels & Resorts FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Margaritaville Hotels & Resorts?
Margaritaville Hotels & Resorts is franchised by Margaritaville Hotels & Resorts, LLC. Its parent company is Margaritaville Enterprises, LLC. The ultimate parent named in the FDD is Margaritaville Holdings LLC. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.