What is the deadline for Camp Margaritaville to acknowledge and commence rectification of work?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 15.03 Reconstruction After Casualty. If this Agreement is not terminated pursuant to Section 15.02, then Franchisee must commence reconstruction of the Resort within 90 days after the occurrence of the casualty and must diligently complete the reconstruction within 2 years after the occurrence of the casualty. The Resort must be reconstructed to at least the condition and character of the Resort immediately before the casualty occurred and Franchisee may not reopen the Resort or promote or otherwise hold the Resort out using the Camp Margaritaville Intellectual Property unless and until Franchisor determines that the reconstruction is completed in accordance with Franchisor's then-current standards. If, at the mutual agreement of the Parties, the Resort (or portions thereof) are not required to be closed, all work to repair damage shall be conducted so as to minimize interference with the Resort's operation and guests. If Franchisee fails to perform its obligations under this Section 15.03, then Franchisor has the right to terminate the Agreement effective upon written notice to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
The 2025 Camp Margaritaville Franchise Disclosure Document (FDD) outlines the procedures for reconstruction after a casualty event. Specifically, if the franchise agreement is not terminated following a casualty, the franchisee is obligated to begin reconstruction of the resort within 90 days of the event.
Following the commencement of reconstruction, the franchisee must diligently work to complete the reconstruction within two years from the date of the casualty. The reconstructed resort must meet or exceed the condition and character it possessed immediately before the casualty.
Camp Margaritaville stipulates that the franchisee cannot reopen the resort or use the Camp Margaritaville Intellectual Property for promotion until the franchisor confirms that the reconstruction adheres to the franchisor's current standards. Failure to meet these obligations gives Camp Margaritaville the right to terminate the franchise agreement with written notice.