What is considered 'Property' in the context of Camp Margaritaville's right of first offer?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 12.03 Sale of Property.
- (a) Sale of Property; Right of First Offer. Without limiting Section 12.02(a), in the event that Franchisee desires to sell, transfer, or assign its interest in the Resort and/or the site where the Resort is located (or any portion thereof) ("Property") to a third party not affiliated with Franchisee, Franchisor shall have the right of first offer to acquire such Property as follows ("Right of First Offer"): Franchisee shall notify Franchisor in writing of its intent to list or sell the Property including the general terms and conditions of the listing or sale at least 30 days before any such listing or sale ("Sale Notice"). The Sale Notice shall include, without limitation, the purchase price and any financing terms as may be offered to or by a third party who is not related or associated in any way with Franchisee, pursuant to which Franchisee would sell, assign, convey, or otherwise transfer the Property. Franchisor shall have the right to purchase the Property on the terms and subject to the conditions set forth in the Sale Notice.
- (b) Exercise. Franchisor may only exercise such right by delivering to Franchisee written notice of its intent to purchase the Property within 20 calendar days after receipt of the Sale Notice ("Exercise Notice"). If Franchisor does affirmatively elect, by delivery of the Exercise Notice, to exercise the Right of First Offer within the aforesaid 20 calendar day period, then Franchisor and Franchisee shall enter into a contract for purchase and sale according to the terms and conditions. If Franchisor does not affirmatively elect, by delivery of the Exercise Notice, to exercise the Right of First Offer within the aforesaid 20 calendar day period, then Franchisee
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, 'Property' refers to the franchisee's interest in the Resort and/or the site where the Resort is located, or any portion thereof. This definition is relevant when the franchisee desires to sell, transfer, or assign their interest to a third party not affiliated with them. In such cases, Camp Margaritaville has a right of first offer to acquire the property.
This right of first offer requires the franchisee to notify Camp Margaritaville in writing of their intent to list or sell the property at least 30 days before any such listing or sale. This notification, called the 'Sale Notice,' must include the general terms and conditions of the listing or sale, including the purchase price and any financing terms offered to or by a third party not related to the franchisee. Camp Margaritaville then has the right to purchase the property on those same terms and conditions.
Camp Margaritaville may exercise its right of first offer by delivering a written notice of its intent to purchase the property within 20 calendar days after receiving the Sale Notice. If Camp Margaritaville elects to purchase the property, both parties will enter into a contract for purchase and sale according to the terms and conditions outlined in the Sale Notice. If Camp Margaritaville does not exercise its right within the 20-day period, the franchisee is free to proceed with the sale to the third party.