My Global Playground Executive Suggests Due Diligence Questions

By: Destination Club News
Date: August 19, 2006

Researching a destination club can often be a time consuming process, requiring a substantial due diligence review of a club's financial structure, properties, amenities, and various other areas crucial to making an informed decision regarding membership. Joyce Kohn, the CEO of My Global Playground, has published her list of suggested questions that she believes "are important as a potential Member to ask and understand."

• The Management Team - How many is too much? Do they get salaries and/or vacations? How are they compensated?
• Partnerships – is this a gentlemen’s partnership or does your annual dues or membership deposit pay for it?
• How many people have Equity in the Club? How will payouts be distributed and when?
• Is the financial model scaleable? If so how do you benefit from that as a Member?
• Who is actually in your home putting groceries away? Is there a process for these services?
• Annual dues – can they go up every year? Is there a cap? What about nightly fees?
• Membership deposit - where does the money go?
• Can I sell my Membership if I have a buyer?
• Can family Members use the residence without you being there?
• What about a "fairness clause" does the Club have a policy on this?
• Is there a quarterly call for Members?
• Will or can you have input in where the Club goes next?

The young My Global Playground currently offers members access to a collection of $4-$6 million homes in destinations such as Maui, Napa, and Mexico, all for one membership deposit and annual dues.

While all of these questions offered by Kohn are helpful, there are several other important issues to discuss when speaking with a destination club. To receive a free copy of our suggested due diligence questions and a background about the destination club industry, request a copy of our Destination Club Guide.