What are the consequences if a Camp Margaritaville franchisee attempts an unauthorized transfer of the franchise?

Question

Accepted Answer

|    | Provision                                              | Section in franchise or other agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|----|--------------------------------------------------------|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| h. | "Cause" defined – non curable defaults | Section 13.03 | Franchisee has no opportunity to cure: material misrepresentations; failure to comply with terms of the Franchise Agreement or System Standards 3 or more times in a 12 month period or 2 or more times in a 6 month period; failure to open and begin operating by Opening Deadline; franchisee, owner, or guarantor is convicted of a felony or a crime involving fraud; knowingly maintaining false books, records, or reports; unauthorized use or disclosure of confidential information; franchisee or guarantor admits insolvency or bankruptcy; ceases operation of the Resort; attempt at an unauthorized transfer; sale of contaminated or adulterated food or beverage two or more times during a twelve month period or once, when it results in serious injury or death; franchisee's or owner's assets block under anti terrorism; violation of restrictions relating to confidential information or restrictive covenants. |
| i. | Franchisee's obligations on termination/non-renewal | Article XVI; Section 3.2 (DR) | Franchisee must (a) debrand the Resort, including removing any and all signage, discontinuing the use of the Camp Margaritaville Intellectual Property, changing all menus at FBR Units, closing accounts with all suppliers or vendors; (b) cease use of related social media and online business directories; (c) pay all amounts due and owed within 30 days of termination or expiration; (d) discontinue use of all technology; and (e) where applicable, pay liquidated damages. |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 64–68)

What are the consequences if a Camp Margaritaville franchisee attempts an unauthorized transfer of the franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

	Provision	Section in franchise or other agreement	Summary
h.	"Cause" defined – non curable defaults	Section 13.03	Franchisee has no opportunity to cure: material misrepresentations; failure to comply with terms of the Franchise Agreement or System Standards 3 or more times in a 12 month period or 2 or more times in a 6 month period; failure to open and begin operating by Opening Deadline; franchisee, owner, or guarantor is convicted of a felony or a crime involving fraud; knowingly maintaining false books, records, or reports; unauthorized use or disclosure of confidential information; franchisee or guarantor admits insolvency or bankruptcy; ceases operation of the Resort; attempt at an unauthorized transfer; sale of contaminated or adulterated food or beverage two or more times during a twelve month period or once, when it results in serious injury or death; franchisee's or owner's assets block under anti terrorism; violation of restrictions relating to confidential information or restrictive covenants.
i.	Franchisee's obligations on termination/non-renewal	Article XVI; Section 3.2 (DR)	Franchisee must (a) debrand the Resort, including removing any and all signage, discontinuing the use of the Camp Margaritaville Intellectual Property, changing all menus at FBR Units, closing accounts with all suppliers or vendors; (b) cease use of related social media and online business directories; (c) pay all amounts due and owed within 30 days of termination or expiration; (d) discontinue use of all technology; and (e) where applicable, pay liquidated damages.