What conditions must Camp Margaritaville's Representatives meet before receiving Confidential Information?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.01 In-Term Restrictive Covenants. Franchisee specifically acknowledges that Franchisee and its Owners will receive access to valuable specialized training and Confidential Information, and that such specialized training and Confidential Information provide a competitive advantage to all Camp Margaritaville Resorts. During the Term, neither Franchisee, its Affiliates, nor any of its Owners shall, directly or indirectly, for itself or themselves or through, on behalf of, or in conjunction with, any other Person:
- (a) Divert or attempt to divert business or potential business from any Camp Margaritaville Resorts (including the Resort) to any other competing business or perform any other act injurious or prejudicial to the goodwill associated with the Camp Margaritaville Intellectual Property or the Camp Margaritaville System;
- (b) Authorize, assist, or induce another to take any action that Franchisee or its Owners would be prohibited from taking directly pursuant to this Section 9.01.
- (c) Authorize any "bundling" of the Hotel in Franchisee's volume deals with third-party agencies or services, unless approved by Franchisor in its sole discretion; or
- (d) Staff the Hotel with any revenue management, sales, or marketing personnel that also support non-Margaritaville-branded lodging locations.
Section 9.02 Directives. In the event of any dispute related to this Article IX, Franchisee and its Owners direct any third-party construing this Section, including without limitation any court, mediator, arbitrator, master, or other party acting as trier or fact or law:
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees and their owners acknowledge that they will receive access to valuable specialized training and Confidential Information, which provides a competitive advantage to all Camp Margaritaville Resorts. During the term of the agreement, franchisees, their affiliates, and owners are restricted from diverting business from any Camp Margaritaville Resorts, including their own, to any competing business. They are also prohibited from performing any action that could harm the goodwill associated with the Camp Margaritaville Intellectual Property or System.
Additionally, franchisees cannot authorize or assist others in taking actions that they themselves are prohibited from taking. They are not allowed to authorize any "bundling" of the hotel in volume deals with third-party agencies or services without the franchisor's approval. Furthermore, franchisees must not staff the hotel with revenue management, sales, or marketing personnel who also support non-Margaritaville-branded lodging locations.
In the event of a dispute related to these covenants, franchisees and their owners must direct any third party construing these sections, including courts or arbitrators. This indicates that the receipt and use of Confidential Information are tied to specific obligations and restrictions aimed at protecting the Camp Margaritaville system and brand.