What is the deadline for either party to provide written notice to terminate the Camp Margaritaville agreement after a casualty?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
n the Resort. If such taking is non-substantial, then Franchisee shall promptly make whatever changes to the plans, repairs and restoration as may be necessary to make the Resort conform substantially to the condition, character, and appearance immediately prior to such taking, according to plans and specifications approved as required by this Agreement. Franchisee shall take all commercially reasonable measures necessary to ensure that the development and operation of the Resort is not unreasonably delayed.
Section 15.02 Termination Upon Casualty. If the Resort is damaged by fire or other casualty and: (i) the cost of restoration exceeds 30% of the replacement cost of the Resort (excluding land, excavations, footings and foundations); (ii) the estimated length of time required to restore the Resort substantially to its pre-casualty condition and character is more than 180 days, as indicated by an architect's certificate or other evidence reasonably satisfactory to Franchisor; or (iii) insufficient proceeds of insurance do not permit Franchisee to rebuild and restore the Resort to the standards required by this Agreement, then either Party may terminate this Agreement by delivering written notice to the other Party within 90 days after the occurrence of the casualty. In such event, there shall be no liquidated damages, provided that, if such termination is effectuated by Franchisee and within 3 years after the date of such termination, Franchisee, any of its Affiliates, or any member of Fra
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, either the franchisor or the franchisee can terminate the franchise agreement if the Camp Margaritaville resort suffers damage from fire or another casualty. This is permissible if the cost to restore the resort exceeds 30% of its replacement cost (excluding land, excavations, footings, and foundations). Termination is also allowed if the estimated restoration time is more than 180 days, as certified by an architect or other evidence satisfactory to Camp Margaritaville. Finally, termination is allowed if insurance proceeds are insufficient to restore the resort to the standards required by the franchise agreement.
To terminate the agreement under these conditions, either party must deliver written notice to the other party within 90 days after the casualty occurs. If the franchisee terminates the agreement and, within three years, the franchisee or its affiliates operate another resort at the same location without offering it to Camp Margaritaville for licensing, franchising, or management, the franchisee will be considered to have wrongfully terminated the agreement. In this case, the franchisee must pay Camp Margaritaville liquidated damages of $4,000 multiplied by the number of overnight accommodations in the resort.
This clause protects both Camp Margaritaville and the franchisee in the event of a significant casualty that impacts the resort's viability. The 90-day window provides time to assess the damage, estimate restoration costs and timelines, and evaluate insurance coverage before making a decision about the future of the franchise. The liquidated damages provision aims to prevent a franchisee from terminating the agreement due to a casualty and then quickly reopening a competing resort without involving Camp Margaritaville.