Is a Camp Margaritaville customer considered a third-party beneficiary of any agreement with a Services Provider?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Customer is not a third-party beneficiary of any commitment by or agreement with Services Provider, and only Margaritaville maintains privity with Services Provider for any matter set forth in these Terms of Use.
In no event shall Margaritaville be held liable to the extent a commitment or obligation of Services Provider has not been fulfilled through no fault of Margaritaville.
Margaritaville shall commercially reasonably assist Customer with respect to any issues, questions or conflicts with the Services Provider arising under these Terms of Use and the Master Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a customer is not considered a third-party beneficiary of any agreement with a Services Provider. Margaritaville extends certain protections from the Services Provider to the customer on a pass-through basis. However, the agreement explicitly states that only Margaritaville maintains privity with the Services Provider. This means that the customer does not have the right to directly enforce the terms of the agreement between Margaritaville and the Services Provider.
This arrangement limits the customer's legal recourse in case of any issues with the services provided by the Services Provider. If the Services Provider fails to fulfill its commitments, the customer cannot directly sue the Services Provider for breach of contract. Instead, the customer must rely on Margaritaville to address the issue with the Services Provider. This pass-through agreement is designed to protect the Services Provider from direct liability to the customer and to streamline the management of the relationship through Margaritaville.
The FDD also states that Margaritaville will commercially assist the customer with any issues, questions, or conflicts with the Services Provider. However, Margaritaville will not be held liable if the Services Provider's obligations are not fulfilled due to no fault of Margaritaville. This highlights the importance of Margaritaville franchisees understanding the scope and limitations of the services provided by third parties and the potential need to address issues through Margaritaville rather than directly with the service provider.
This type of arrangement is common in franchising, where the franchisor often acts as the intermediary between franchisees and third-party service providers. It allows the franchisor to maintain control over the quality and consistency of services provided to franchisees while also protecting the service provider from direct liability to individual franchisees. Prospective Camp Margaritaville franchisees should carefully consider this arrangement and understand their rights and responsibilities in relation to third-party service providers.