What disclaimers and waivers must the Franchisee include in the purchase and sale agreement for a Dwelling at Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
erm, Franchisee and its Affiliates and real estate sales representatives, including without limitation, brokers, agents, and employees thereof, shall have the right to utilize Camp Margaritaville Intellectual Property in conjunction with the marketing, advertising, promotion, and sale of Dwellings, subject to Franchisor's prior, written approval in accordance with this Agreement. There shall not be any references to the Franchisor or its Affiliates developing, selling or operating any Dwellings.
4.1.5 Rental Management Agreements.
- A. Following the execution of a purchase and sale agreement for a Dwelling and in no event prior thereto (excluding Franchisee as a Dwelling Owner), Dwelling Owners shall be afforded the opportunity to participate in the Rental Program. Dwelling Owners that, in their sole discretion, decide to participate in the Rental Program shall participate in the rental stream generated by the Website.
- B. Dwelling Owners desiring to participate in the Rental Program shall enter into a rental management agreement with Franchisee in a form approved by Franchisor (such approval not to be unreasonably withheld, conditioned or delayed) (each, a "Rental Management Agreement"). During the Term, the form of Rental Management Agreement approved by the Franchisor, shall not be amended, or any other Rental Management Agreement adopted, that adversely affects or detracts from the overall image of the Camp Margaritaville Intellectual Property and the standards of quality associated therewith or the operation of the Project.
- C.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, when a franchisee executes a rental management agreement with a dwelling owner, the franchisee must include specific disclaimers and waivers. These disclaimers and waivers, in a form mutually agreed upon by both Camp Margaritaville and the franchisee, must address that Camp Margaritaville is only involved in the Rental Program as a franchisor. The agreement should also state that Camp Margaritaville's rights are defined and governed solely by the franchise agreement.
Additionally, the purchase and sale agreement must include specific statements clarifying Camp Margaritaville's role and rights. These statements must confirm that neither Camp Margaritaville nor its affiliates are participating in or responsible for the construction or sale of the dwellings. It should also state that Camp Margaritaville is involved with the dwellings only as a licensor with the right to enforce quality control requirements related to the Camp Margaritaville Intellectual Property.
Finally, the agreement must state that upon termination or expiration of the franchise agreement, neither the purchaser nor the Homeowners Association (HOA) has any right to use the Camp Margaritaville Intellectual Property in any advertising or promotion of the dwelling or the project. However, during the term of the agreement, the franchisee and its affiliates have the right to use the Camp Margaritaville Intellectual Property in marketing, advertising, promotion, and sale of dwellings, subject to Camp Margaritaville's prior written approval. The agreement should explicitly state that there should be no references to Camp Margaritaville or its affiliates developing, selling, or operating any dwellings.