About Compass by Margaritaville Franchise
Compass by Margaritaville is a hotel franchise brand under parent company Margaritaville Enterprises, LLC, offering franchise opportunities since 2018.
The brand brings the relaxed, island inspired lifestyle of Margaritaville to the select service hotel segment, offering guests comfortable rooms, casual dining, and signature amenities in a laid back atmosphere that captures the spirit of escape and relaxation.
The franchise fee is $60,000 based on a 120 room hotel.
Compass by Margaritaville Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $60,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Rooms Revenue | National brand fund |
| Total Investment Range | $9,101,360 – $12,276,360 | Includes build-out, inventory, working capital |
The investment range of $9.1M–$12.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenue) and marketing fee (3% of Gross Rooms Revenue) are ongoing costs paid as a percentage of gross sales.
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Then-current application fee |
| Renewal Fee | $30,000 |
| CRM Fees | $7.50/room/month |
| Loyalty Program | $7/room/month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 1 week offsite + 10-14 days on-site task force |
| Training Location | Various |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Specific site only |
| Exclusive Territory | No |
| Description | No exclusive territory |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 10 years (1 renewal) |
| Renewal Fee | $30,000 |
| Transfer Fee | Then-current application fee |
| Non-Compete Details | No non-compete after termination |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Approved management company or designated persons |
| Required Suppliers | Must use designated PMS, POS, CRS, CRM; approved designer; SYSCO for food |
Compass by Margaritaville Franchise Earnings — Item 19
Compass by Margaritaville does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Compass by Margaritaville Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Compass by Margaritaville System Growth
Compass by Margaritaville currently operates 1 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Public Figures (Item 18)
The following public figures are associated with this franchise: Jimmy Buffett
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Compass by Margaritaville Franchise — FAQ
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