Does Camp Margaritaville consider internal restructuring transactions as 'transfers' if the ultimate ownership and control group does not change?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Note: Franchisees sometimes restructure their organizations and assign franchise agreements from one company to another within the same ownership group. We do not consider these restructuring transactions to be "transfers" because the ultimate ownership and control group does not change. Further this table only refers to outlets that were transferred after opening. No franchisees transferred their franchise agreements for unopened outlets in 2022 or 2023. As noted above, one franchisee transferred its franchise agreement for an opened outlet in 2024. One franchisee transferred its franchise agreement for an unopened outlet in 2024.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 69–71)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, internal restructuring transactions where the ultimate ownership and control group remains the same are not considered 'transfers'. This means that if a franchisee restructures their business, such as assigning the franchise agreement to another company within their existing ownership structure, it will not be classified as a transfer by Camp Margaritaville.
This policy has practical implications for franchisees who may want to reorganize their business for tax, liability, or other business reasons. Knowing that such internal restructurings will not be treated as a transfer can provide flexibility and reduce potential administrative burdens or transfer fees that might otherwise apply.
Camp Margaritaville also clarifies that the transfer information disclosed in Item 20 pertains only to outlets transferred after opening. The document specifies that in 2024, one franchisee transferred their franchise agreement for an opened outlet, and another transferred their agreement for an unopened outlet.