In the case involving The Commissioner of Financial Protection and Innovation v. Margaritaville Hotels & Resorts, LLC, what did the Defendant voluntarily acknowledge?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ng Before the Department of Financial Protection and Innovation, State of California).
In responding to an inquiry from the Department of Financial Protection and Innovation in relation to the above-named defendant's ("Defendant") pending franchise registration application in California, Defendant voluntarily acknowledged that, in connection with the sale of three Margaritaville Hotels & Resorts in California between July 2019 and February 2020, it had neglected to file a notice of exemption
with and pay a fee to the Commissioner of Financial Protection and Innovation (the "Commissioner") no later than 15 days after each sale. On March 7, 2020, the Commissioner and Defendant agreed to enter into a consent order whereby Defendant agreed to: desist and refrain from activity in violation of applicable California franchise law; pay an administrative penalty in the amount of $7,500 to the Department of Financial Protection & Innovation within 15 days; and amend its pending franchise registration application to include disclosure of the
Source: Item 3 — LITIGATION (FDD pages 16–18)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, in the case of The Commissioner of Financial Protection and Innovation v. Margaritaville Hotels & Resorts, LLC, the Defendant, Margaritaville Hotels & Resorts, LLC, voluntarily acknowledged that it had neglected to file a notice of exemption in connection with the sale of three Margaritaville Hotels & Resorts in California between July 2019 and February 2020.
This acknowledgment occurred during an inquiry from the Department of Financial Protection and Innovation regarding the Defendant's pending franchise registration application in California. This means that Camp Margaritaville, when selling hotels in California, failed to properly notify the state regulators about an exemption that might have applied to those sales.
As a result, Camp Margaritaville agreed to a consent order with the Commissioner of Financial Protection and Innovation. The consent order stipulated that Camp Margaritaville must cease any activity violating California franchise law, pay an administrative penalty of $7,500 to the Department of Financial Protection & Innovation within 15 days, and either amend its pending franchise registration application to include disclosure of the consent order or withdraw the application within 15 days. This situation highlights the importance of adhering to state-specific franchise regulations and the potential financial and administrative consequences of non-compliance for prospective Camp Margaritaville franchisees.