In acquiring rights under the Camp Margaritaville agreement, what is the franchisee required to ensure regarding statements and materials provided to the franchisor?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisor's approval of the Site is not a guarantee or warranty, express or implied, of the success or profitability of a Camp Margaritaville Resort at that location;
- (b) retaining customers for the Resort will require a high level of customer service and strict adherence to the Camp Margaritaville System and the System Standards, and that Franchisee is committed to maintaining the System Standards;
- (c) any information Franchisee has acquired from other Camp Margaritaville Resort owners, including information regarding their sales, profits, or cash flows, is not information obtained from Franchisor, and Franchisor makes no representation about that information's accuracy;
- (d) all statements Franchisee has made and all materials (including ownership information and descriptions of Franchisee's and/or its Affiliates' ownership structure(s)) it has given Franchisor in acquiring the rights under this Agreement are accurate and complete and that Franchisee has made no misrepresentations or material omissions in obtaining those rights; and
- (e) Franchisee is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, and Franchisee's execution and delivery of this Agreement and performance of its obligations hereunder (i) have been duly authorized by all necessary company action, (ii) do not and will not violate or result in a breach or default under any Applicable Law or any agreement to which Franchisee is a party or by which it is bound, and (iii) do not require the consent of any third party that has not been obtained.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, a franchisee must ensure the accuracy and completeness of all statements and materials provided to the franchisor when acquiring rights under the franchise agreement. Specifically, the franchisee must confirm that all statements made and materials given to Camp Margaritaville, including ownership information and descriptions of the franchisee's ownership structure, are accurate and complete. Additionally, the franchisee must confirm they have not made any misrepresentations or material omissions during the process of obtaining franchise rights. This requirement is part of the franchisee's broader set of obligations upon signing the agreement.
This provision protects Camp Margaritaville from potential legal issues arising from inaccurate or incomplete information. It also ensures that the franchisor has a clear and truthful understanding of the franchisee's background and financial standing. By requiring franchisees to verify the accuracy of their submissions, Camp Margaritaville aims to maintain transparency and trust within the franchise system.
For a prospective Camp Margaritaville franchisee, this means exercising due diligence in preparing all documents and statements submitted to the franchisor. It is crucial to review all information for accuracy and completeness and to disclose any relevant details that could impact the franchise agreement. Failure to comply with this requirement could lead to legal complications or even termination of the franchise agreement.