Does the Camp Margaritaville customer's obligation to comply with the agreement end upon termination or expiration?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
s or offer to conduct business upon expiration or termination of this Agreement.
- (d) Franchisee further acknowledges and agrees that any violation of this Section 16.02 constitutes trademark infringement, service mark infringement, unfair competition, false advertising, and/or deceptive trade practices pursuant to federal, state, and common law, that such violation encroaches on the goodwill associated with Franchisor's brand, and that such violation is likely to cause confusion among reasonably prudent consumers.
Section 16.03 Franchisee Fee Obligations. Upon the expiration or earlier termination of this Agreement for any reason, all accrued and unpaid Royalties and Marketing Fees due at the time of expiration or termination shall become due and payable within 30 days following the later of such expiration or termination.
Section 16.04 Technology Services. Upon expiration or termination of this Agreement, Franchisee must cease use of the CRS, or any other technology connected to the Camp Margaritaville System, including, but not limited to the CRM System, PMS, POS System, employee performance platform and CMS. Franchisee, however, shall remain obligated to any third parties for payments due and owing under any separate agreement for services that they may have with such third-party vendors.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, certain obligations continue even after the agreement expires or is terminated. Specifically, all accrued and unpaid Royalties and Marketing Fees that are due at the time of expiration or termination become immediately payable. These outstanding amounts must be paid within 30 days following the date of termination or expiration. This means that even after the franchise agreement ends, Camp Margaritaville retains the right to collect any outstanding financial obligations.
Furthermore, upon the termination or expiration of the agreement, the franchisee is required to cease using the CRS (Central Reservation System) or any other technology connected to the Camp Margaritaville system. This includes the CRM System, PMS, POS System, employee performance platform, and CMS. However, the franchisee remains responsible for any payments due to third-party vendors under separate agreements for services they may have with those vendors. Therefore, while the franchisee must discontinue using Camp Margaritaville's technology, they are still obligated to fulfill their financial commitments to external service providers.
Camp Margaritaville emphasizes that any violation of the terms related to business operations after termination or expiration constitutes trademark infringement, service mark infringement, unfair competition, false advertising, and/or deceptive trade practices. Such violations are considered an encroachment on the goodwill associated with Camp Margaritaville's brand and are likely to cause confusion among consumers. This underscores the importance of adhering to the post-termination obligations to avoid potential legal repercussions and protect the brand's integrity.