What are contract liabilities for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Margaritaville Holdings LLC, a Delaware limited liability company (the "Guarantor"), located at 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819 absolutely and unconditionally guarantees to assume the duties and obligations of Margaritaville RV Resorts, LLC, located at 6900 Turkey Lake Road, Suite 200, Orlando, Florida 32819 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its Camp Margaritaville RV Resorts Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Camp Margaritaville does not explicitly detail the contract liabilities for franchisees. However, it does include a 'Guarantee of Performance' from Margaritaville Holdings LLC, ensuring the fulfillment of obligations by Margaritaville RV Resorts, LLC under the franchise agreement and registrations. This guarantee remains effective until all obligations are met or the franchisor's liability to franchisees is completely discharged.
Several riders to the franchise agreement are mentioned, including those for dwellings, lodges, FBR (food, beverage, retail), and amenities. These riders outline specific terms, definitions, and obligations related to these additional aspects of a Camp Margaritaville franchise. The franchisee is responsible for developing the resort according to the Camp Margaritaville System standards and bears the entire cost of development and construction.
To fully understand the specific contract liabilities, a prospective franchisee should carefully review the Franchise Agreement, including all its riders, and seek clarification from Camp Margaritaville regarding any potential financial or legal obligations. Consulting with a franchise attorney is also advisable to ensure a comprehensive understanding of the contractual commitments.