Is a Camp Margaritaville customer a third-party beneficiary of any agreement between MVE and any Services Provider?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.6 No Third-Party Beneficiary. Customer is not a third-party beneficiary of any commitment by or agreement with any Services Provider, and only MVE maintains privity with Services Provider for any matter set forth in this Agreement. In no event shall MVE be held liable to the extent a commitment or obligation of a Service Provider has not been fulfilled through no fault of MVE. MVE shall reasonably assist Customer with respect to any issues, questions or conflicts with a Services Provider arising under this Agreement, including, but not limited to, enforcing the Services Provider' obligations with respect to a data security breach affecting Customer.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, a customer is not considered a third-party beneficiary of any agreement between MVE (presumably Margaritaville Vacation Experience) and any Services Provider. This means that only MVE has a direct relationship with the Services Provider regarding the agreement. Therefore, the customer cannot directly enforce any commitments or obligations the Services Provider has made to MVE.
This arrangement limits the liability of MVE if a Services Provider fails to fulfill its obligations, provided that the failure is not due to MVE's fault. MVE is still expected to assist the customer in resolving issues or conflicts with a Services Provider, including helping to enforce the Services Provider's obligations in the event of a data security breach affecting the customer. This assistance is provided to support the customer without granting them direct legal rights against the Services Provider.
This type of clause is common in franchise agreements to protect the franchisor from being held liable for the actions of third-party providers. While Camp Margaritaville customers do not have direct recourse against the service provider, Camp Margaritaville is obligated to assist customers with issues that arise with service providers.