In the context of the Camp Margaritaville franchise agreement, what is the significance of the 'Agreement Date'?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS FBR RIDER TO THE CAMP MARGARITAVILLE FRANCHISE AGREEMENT ("Rider") is made and entered into by and between Margaritaville RV Resorts, LLC, a Delaware limited liability company ("Franchisor") and, a ("Franchisee") as a rider to the Franchise Agreement dated between Franchisor and Franchisee (the "Agreement") as of ("Effective Date"). WHEREAS, pursuant to the Agreement, Franchisor has authorized Franchisee to operate the Resort as a Camp Margaritaville Resort at the Site;
Section 2.08 Opening Deadline and Extension. Franchisee must open and begin operating the Resort under the Camp Margaritaville System and the Camp Margaritaville Intellectual Property (a) within 24 months after the Effective Date if the Resort is a new construction, or (b) within 18 months after the Effective Date (unless otherwise provided in the PIP, if applicable pursuant to Section 2.04) if the Resort is an adaptive reuse, as applicable (the "Opening Deadline").
If Franchisee wants an extension of the Opening Deadline, Franchisee must submit a written request and a $10,000 extension fee to Franchisor before the Opening Deadline.
Section 1.02 Initial Term. The term of this Agreement (the "Initial Term") will commence on the Effective Date and expire without notice on the date which is 20 years after the Opening Date, subject to its earlier termination as set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the 'Effective Date' is a critical date that determines several key deadlines and obligations for the franchisee. The franchise agreement's initial term commences on the Effective Date and extends for 20 years after the Opening Date. This date marks the beginning of the franchisee's rights and responsibilities under the agreement.
Furthermore, the franchisee has a limited time frame to open their Camp Margaritaville Resort after the Effective Date. For new construction resorts, the franchisee has 24 months from the Effective Date to open. For adaptive reuse projects, this period is shorter, at 18 months from the Effective Date, unless a Property Improvement Plan (PIP) specifies otherwise. This is called the "Opening Deadline".
Missing the Opening Deadline can have serious repercussions. Camp Margaritaville may terminate the franchise agreement immediately and without notice if the resort isn't open by the specified deadline, potentially resulting in the franchisee losing all fees and expenses paid up to that point. However, the franchisee can request an extension of the Opening Deadline by submitting a written request and a $10,000 extension fee to Camp Margaritaville before the original deadline. If the extension is approved, Camp Margaritaville will set a new Opening Deadline, but the extension fee is non-refundable.
In addition, the FBR (Food and Beverage/Retail) Rider to the Camp Margaritaville Franchise Agreement is effective as of the Effective Date of the overall agreement. The Effective Date is essential for determining the term of the agreement, the deadline for opening the resort, and the effectiveness of any related riders or addenda.