Simplicity International
Resignation and Redemption

Launching early in 2005, Simplicity International would see strong growth in their early several months, selling roughly 25% of their total 36 memberships. Based in Southport, Simplicity would focus primarily on Connecticut, giving members a collection of vacation properties both within driving distance and in popular resort areas.

Likely as a result of this strong initial growth, Simplicity International was quickly acquired by a large resort development. Over the course of the next year, the club component of Simplicity was suspended and ultimately the entire club was abandoned.

More than a year after the acquisition, John Schopfer, the club's inaugural President and Chief Operations Officer, would acquire the club, stating that he was "extremely pleased to acquire Simplicity when the opportunity presented itself."

Rather than returning to the destination club industry as the club was originally constructed, Schopfer would transition Simplicity International to become a resort real estate development company.

Existing as a destination club for just a matter of months, Simplicity International's resignation and redemption policies would closely resemble that of many of the sector's leading players.

"Despite the time and money you pour into a vacation home, there is no assurance of a quick or easy return when you're ready to sell," Simplicity International wrote. "Instead, you could face a lack of liquidity and fluctuating real-estate markets. With Simplicity, you simply let us know if you'd like to exit the club, and you'll receive a check for your entire membership deposit (less a 12.5% transfer fee) when the next two members join - the standard method of repayment in most equity country clubs.

The majority of destination clubs redeem one resigning member for every two to four new members that join. The amount that is repaid to members varies wildly across the destination club industry with some clubs refunding nothing to members and some clubs refunding more than they originally paid to join.

If you are considering destination club membership, understanding the resignation and redemption policies of clubs you are considering is just as important as evaluating the club's properties and services. If you would like to receive a free list of suggested due diligence questions pertaining to resigning from a destination club and many other critical criteria, request a copy of our Destination Club Guide.