What constitutes an 'Affiliate' of a party in the context of the Camp Margaritaville franchise agreement?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, an 'Affiliate' of a specified party is defined as any person or entity that directly or indirectly Controls, is Controlled by, or is under common Control with, the specified Party. This definition is crucial for understanding the scope of various clauses within the franchise agreement, as it determines which entities are bound by or benefit from the agreement's provisions. However, the term 'Affiliate' as applied to the Franchisor, Margaritaville RV Resorts, LLC, excludes Buffett.

This definition has several practical implications for a Camp Margaritaville franchisee. For instance, Camp Margaritaville may arrange with its Affiliates to provide various services related to the Camp Margaritaville System, such as development, marketing, or operations. The franchisee agrees that Camp Margaritaville has the right to delegate the performance of any portion or all of its obligations under the agreement to third-party designees, whether these designees are its Affiliates, agents, or independent contractors. Understanding who qualifies as an 'Affiliate' helps the franchisee understand the network of related parties that may be involved in the franchise system.

Furthermore, the definition of 'Affiliate' is relevant to the franchisee's obligations and restrictions. For example, the franchisee must meet certain conditions related to its Affiliates to renew the franchise agreement, such as ensuring that neither the franchisee nor its Affiliates are in default of any agreement with Camp Margaritaville or its Affiliates. This highlights the importance of maintaining good standing not only for the franchisee's business but also for any related entities that fall under the definition of 'Affiliate'.