COMPASS by Margaritaville Hotels and Resorts
Margaritaville Enterprises, LLC
Company Information
6900 Turkey Lake Road, Suite 200 Orlando, Florida 32819
We are a limited liability company formed in Delaware. Our principal business address is 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819, and our telephone number is (407) 203 2626. If we have an agent for service of process in your state, we disclose that agent in Exhibit A. We do business only under our company name and the COMPASS Intellectual Property (defined below). We have never operated COMPASS Hotels. We have no predecessors and no business activities that are not described here. One of our parent companies is Margaritaville Enterprises, LLC, whose principal business address is the same as ours. Another parent company is Margaritaville Holdings LLC, whose principal business address is the same as ours. We have offered franchises for COMPASS Hotels since 2018 and have never offered franchises in any other line of business. Prior to offering franchises, we, through affiliated entities, entered into trademark license agreements for COMPASS Hotels in some locations.
None of our affiliates currently provide products or services to COMPASS Hotel franchisees. The following companies are our affiliates who currently offer franchises or licenses in the United States and around the world. The branded hotels that some of these affiliates operate or franchise might use the same reservations systems and other systems and processes as COMPASS Hotels 1 Margaritaville Enterprises, LLC is the owner and licensor of the intellectual property rights used by COMPASS Hotels in addition to other intellectual property rights that it licenses to related companies Further, Margaritaville Enterprises has the exclusive right to use and sublicense, in connection with hospitality and other businesses, all intellectual property, including, but not limited to, music, lyrics, photographic works, books films, articles, and other works of authorship that are 100% owned and controlled by Jimmy Buffett, Coral Reefer Music, and any other entities which are majority-owned and controlled by Jimmy Buffett In 2014, Margantaville Enterpnses offered a franchise for a Margantaville restaurant located m Chicago, Illinois Meirgantaville Enterprises has also licensed certain intellectual property rights used by COMPASS Hotels for other lines of business, including but not limited to, other lodging products, restaurants, casinos, alcoholic beverages, drink mixes, food products, blenders, clothing and other consumer products Margantaville Enterprises' principal business address is the same as our address. 2 Margaritaville Hotels & Resorts, LLC (“MHR”), which is wholly owned by Margantaville Enterprises, LLC, began offenng trademark license agreements for full-service hotels and resorts operating in the United States under the Margantaville name (without a sub-brand) in Apnl 2019 Prior to offenng such agreements, other entities wholly owned and controlled by Margantaville Enterprises, LLC, entered into trademark license agreements for Margantaville Hotels & Resorts MRH has never offered franchises in any other line of business MHR's pnncipal business address is the same as our address. 3 Margaritaville Restaurants, LLC (“MR”), which is wholly owned by Margantaville Enterprises, LLC, began offering franchises for bars and restaurants operating in the United States and internationally under the trademark Air Margantaville® m April 2019 Pnor to offering franchises, other entities wholly owned and controlled by Margantaville Enterprises, LLC, entered into trademark license agreements for Air Margantaville® and other branded restaurants MR has never offered franchises in any other line of business MR's pnncipal business address is the same as our address.
2 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
4/10
Investment Accessibility
4/10
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $141,300 Maximum: $305,300
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $10,151,300 Maximum: $37,430,300
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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