What are the conditions precedent to renewal for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements. You should read these provisions in the agreements attached to this disclosure document.
* For purposes of the table below: "LR" refers to the Lodge Rider and "DR" refers to the Dwellings Rider
THE FRANCHISE RELATIONSHIP
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 1.02 | Initial term is twenty (20) years |
| b. | Renewal or extension of the term | Section 1.03 | If you are in good standing and satisfy certain conditions (as described in 17.c. below) are met, then you are entitled an automatic renewal of your franchise rights for one additional ten (10) year term |
| c. | Requirements for franchisee to renew or extend | Section 1.03 | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal. When renewing, you may be asked to sign a contract with materially different terms and conditions than your original Franchise Agreement. Franchisee must pay a $50,000 renewal fee and comply with the conditions precedent to renewal, including: written notice of intent 12-18 months prior to expiration; not be in default; franchisee still has ownership of site; franchisee agrees |
| Provision | Section in franchise or other agreement | Summary | |
| ---- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| to remodel to the Resort's then | |||
| current standards; execution of |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 64–68)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise for one additional ten-year term if they are in good standing and meet certain conditions. To renew the franchise, a franchisee must pay a $50,000 renewal fee and comply with several conditions.
The conditions precedent to renewal include providing written notice of intent to renew 12-18 months before the expiration of the current term. Additionally, the franchisee must not be in default of the franchise agreement and must still have ownership of the site. The franchisee is also required to remodel the Resort to Camp Margaritaville's then-current standards.
Furthermore, the franchisee must execute the then-current form of the franchise agreement, which may contain materially different terms and conditions than the original agreement. Finally, the franchisee must execute the then-current release, absolving Camp Margaritaville and its affiliates from any and all claims. These conditions ensure that the franchisee is up-to-date with the brand's standards and releases Camp Margaritaville from potential liabilities before the renewal is granted.