Worth It?HistoryDatabaseCompareDistress SignalsFDD Changes
TravelLimited DataItem 19: ✓ DisclosedQuality: 60/100

Compass by Margaritaville Hotels & Resorts

Based on 2019 FDD · 1 filing in corpus

FranchiseIQ Score
59
C
Moderate Risk
Composite score based on SBA default rate, unit growth, disclosure quality & investment efficiency.
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Total Investment Range$9.0M – $26.4M
MinMid: $17.7MMax

Key Metrics

Franchise Fee
$60K
Royalty Rate
5%
Ad Fund Rate
3%
Total Burden
8.0%
Royalty + ad fund
Units (2023)
—
Net Unit Growth
→ —
Year over year
Cash-on-Cash Return
~8–15%
Annual estimated return
Payback Period
~5–12 yrs
Break-even timeline
SBA Default Rate
~3–8%
Fewer than 50 loans on record
Median Revenue
~$800K–$2M
Item 19 disclosed
Red Flags Assessment
LOW: Single-year corpus
LOW ×1
Premium Data

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SBA default rate, Risk Score, CoC%, investment benchmarks, and unit growth for Compass by Margaritaville Hotels & Resorts.

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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Compass by Margaritaville Hotels & Resorts vs. Travel Average

MetricCompass by Margaritaville Hotels & ResortsTravel Avg
SBA Default Rate—7.2%
Cash-on-Cash Return—15.5%
Total Investment$17.7M$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

Compare

Compass by Margaritaville Hotels & Resorts vs Signature InnCompass by Margaritaville Hotels & Resorts vs WOODSPRING SUITESCompass by Margaritaville Hotels & Resorts vs SureStay

Similar Franchises · Travel

Signature Inn
Limited Data
$256K–$6.6M
WOODSPRING SUITES
Limited Data
$8.2M–$13.3M
SureStay
Limited Data
$168K–$13.7M
Signature Inn
$256K – $6.6M
WOODSPRING SUITES
$8.2M – $13.3M
SureStay
$168K – $13.7M
Red Lion Hotels Franchising, Inc.
$646K – $8.7M

Questions to Ask Before You Sign

5 data-driven questions every Compass by Margaritaville Hotels & Resorts franchise buyer should ask.

  1. 1.What is Compass by Margaritaville Hotels & Resorts's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Compass by Margaritaville Hotels & Resorts disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Compass by Margaritaville Hotels & Resorts →Validation call guide →

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Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.