What Best rating must insurance carriers have to be approved for Camp Margaritaville franchisees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Renewal certificates of insurance will be delivered to Franchisor not less than 10 days before their respective inception dates. If Franchisee fails to procure or maintain the required insurance, Franchisor may procure (without any obligation to do so) such insurance at Franchisee's cost, including a reasonable fee for Franchisor's procurement and maintenance of such insurance. If Franchisee delegates its insurance obligations to any other Person, Franchisee will ensure that such Person satisfies such obligations. Such delegation will not relieve Franchisee of its obligations under this Section 10.5 and the System Standards. Franchisee will cooperate with Franchisor in pursuing any claim under insurance required by this Agreement. Franchisee must purchase these policies from carriers who are qualified to do business in the jurisdiction in which the Resort is located and that have a Best rating of at least A. Franchisor must approve all insurance companies that Franchisee uses.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees must purchase insurance policies from carriers qualified to do business in the jurisdiction where the Resort is located. These carriers must have a Best rating of at least A.
Camp Margaritaville also requires that the franchisor approves all insurance companies that franchisees intend to use. This means a franchisee cannot simply choose any insurance provider meeting the minimum rating; Camp Margaritaville must explicitly sign off on the selection.
This requirement ensures that franchisees maintain adequate coverage through reputable and financially stable insurance companies, protecting both the franchisee and the Camp Margaritaville brand from potential liabilities and losses. It also allows Camp Margaritaville to have some control over the insurance coverage, ensuring that it meets their standards and provides sufficient protection for the system.