Compass by Margaritaville charges a royalty fee of 5.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Compass by Margaritaville franchise is approximately 6.5% of gross sales (2025 FDD). This includes the royalty fee, a 1.5% marketing/advertising fund contribution, a $1100/month technology fee, and other recurring charges.

Compass by Margaritaville has been involved in 3 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the Compass by Margaritaville franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Compass by Margaritaville offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Online sales are managed by the franchisor, not individual franchisees.

Compass by Margaritaville currently operates 4 locations (2025 FDD) (4 franchised, 0 company-owned). The system grew by 100.0% over the past year. The 3-year compound annual growth rate is 26.0%.

The 1-year franchisee turnover rate for Compass by Margaritaville is 0.0% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

Compass by Margaritaville does not include an Item 19 financial performance representation in their FDD (2025 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.

The initial franchise agreement term for Compass by Margaritaville is 20 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 30 years.

Compass by Margaritaville's post-termination non-compete clause restricts former franchisees from operating a competing business for 0 years within 0 miles of the former location (2025 FDD).

Yes, Compass by Margaritaville's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD). The agreement includes a jury trial waiver.

Compass by Margaritaville provides 40 hours of initial training over approximately 3 weeks (2025 FDD). Ongoing field support is provided on a quarterly basis.

Yes, Compass by Margaritaville provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.