Does the Camp Margaritaville agreement grant the franchisee any automatic right to a Renewal Term?

Section 1.06 Effect of Non-Renewal on Expiration. Non-renewal of this Agreement will result in the Agreement ending on the expiration date and thereby end Franchisee's franchise rights to operate the Resort. Upon such expiration, Franchisee must meet all obligations applicable upon termination or expiration as set forth in Article XVI herein. Franchisee agrees that this Agreement does not grant Franchisee any automatic right to the Renewal Term and that Franchisor is not obligated to provide Renewal Consent.

Section 1.02 Initial Term. The term of this Agreement (the "Initial Term") will commence on the Effective Date and expire without notice on the date which is 20 years after the Opening Date, subject to its earlier termination as set forth in this Agreement.

Section 1.03 Renewal Term and Conditions. The Franchisee may, but is not obligated to, renew this Agreement for 1 additional period of 10 years (the "Renewal Term"; and together with the Initial Term, the "Term"), provided that Franchisee has satisfied each of the following conditions (all of which shall be referred to as the "Renewal Conditions");

• (a) Franchisee provides Franchisor written notice of its election to renew the Franchise Agreement for the Renewal Term between 12 and 18 months prior to the expiration of this Agreement (the "Renewal Notice");

• (b) Prior to giving the Renewal Notice and for the remainder of the Initial Term:

  • (i) Franchisee has fully performed all of its obligations under this Agreement;

• (ii) Franchisee has satisfied all monetary obligations in a timely and responsible manner to Franchisor, its affiliates, subsidiaries, and designees;

• (iii) Franchisee, its Affiliates, or Guarantors are not in default of this Agreement or any other agreement with Franchisor or its Affiliates and the Resort is in full compliance with the Camp Margaritaville System, the System Standards, and Manual;

• (iv) Franchisee is not in default of any material obligations or materially delinquent on any undisputed payments due under any agreement with any third party related to the Resort, including without limitation, vendors, suppliers, lessors, or mortgage holders; and

• (v) Franchisee provides certification of compliance with all conditions precedent to Franchisor with Renewal Notice.

• (c) Franchisee must not have received more than 2 Notices of Default from Franchisor during the Initial Term;

• (d) Franchisee meets Franchisor's then-current standards for accepting new franchisees, including without limitation, credit worthiness, access to capital, and criminal history;

• (e) Franchisee is still the owner of the Site or to the extent the Site is subject to a lease has secured the right to continue operating at the Site for the Renewal Term and provided to Franchisor a copy of any related leasehold documents;

• (f) If required by Franchisor, Franchisee remodels the Resort to Franchisor's then-current brand image and technological standards for Camp Margaritaville Resorts within 6 months after the expiration of the Initial Term, which may be set forth in a new property improvement plan and/or technology improvement plan. "Remodel" shall mean to refurbish and remodel the Resort, at Franchisee's expense, to conform to the then-current standards for the Camp Margaritaville System, design and decor, fixtures, furnishings, equipment, technology, trade dress, color scheme and presentation of Margaritaville Intellectual Property consistent with the design concepts then in effect for new RV resorts using the Camp Margaritaville System, including, without limitation, such structural changes, remodeling, redecoration and other modifications to existing improvements as Franchisor deems necessary in its commercially reasonable judgment.

Maintenance and repair are not, on their own, a Remodel, nor is Franchisee's acquisition of new or additional equipment or signage due to new or improved System Standards;

• (g) Franchisee has attended all mandatory annual conventions or other mandatory meetings during the Initial Term, unless attendance was excused by Franchisor;

• (h) Franchisee signs Franchisor's then-current form of franchise agreement ("Successor Franchise Agreement") which may be materially different from this Agreement (including without limitation higher and/or different fees), except that Franchisee will not be required to pay another application fee to complete the Training Program (although, Franchisor reserves the right to require additional training as set forth in Section 3.01), or to complete any preopening obligations provided for in such Successor Franchise Agreement;

• (i) Franchisee pays a renewal fee of $50,000;

Source: Item 23 — RECEIPTS (FDD pages 72–406)