What is the consequence if a Camp Margaritaville franchisee fails to promptly submit certificates of insurance to the Franchisor?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, if a franchisee fails, refuses, or neglects to promptly submit certificates of insurance to the franchisor as required under the Franchise Agreement, it constitutes a breach of the agreement. This failure can lead to the termination of the franchise agreement.

Camp Margaritaville also requires renewal certificates of insurance to be delivered to the franchisor no less than 10 days before their respective inception dates. If the franchisee fails to procure or maintain the required insurance, Camp Margaritaville has the option, but not the obligation, to procure such insurance at the franchisee's cost. This cost includes a reasonable fee for the franchisor's procurement and maintenance of the insurance.

It is important for prospective Camp Margaritaville franchisees to understand these requirements and ensure timely submission of insurance certificates to avoid potential termination of the agreement or incurring additional costs for the franchisor to procure insurance on their behalf. Maintaining proper insurance coverage is a standard requirement in franchising to protect both the franchisee and franchisor from potential liabilities.