How is the early termination fee calculated for Camp Margaritaville CRS Terms of Use?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer will remain liable for all amounts due to Margaritaville under these CRS Terms of Use if these CRS Terms of Use are terminated early by Customer as permitted herein or by Margaritaville due to Customer's material breach. In the event these CRS Terms of Use are terminated prior to the expiration of any Term for any reason other than due to a material breach of the Agreement by Margaritaville, Customer agrees to pay a termination fee equal to the average of the monthly payments due under these CRS Terms of Use multiplied by the number of months remaining in the Term (less any Non-Implementation Fee paid).
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the early termination fee for the CRS (Camp Reservation System) Terms of Use is calculated if the agreement is terminated before the end of its term, and not due to a material breach by Margaritaville. In such cases, the franchisee, referred to as the Customer, must pay a termination fee.
The fee is determined by taking the average of the monthly payments due under the CRS Terms of Use and multiplying it by the number of months remaining in the Term. From this amount, any Non-Implementation Fee already paid is subtracted. This calculation provides the total early termination fee that the franchisee must pay to Camp Margaritaville.
This means that if a Camp Margaritaville franchisee decides to terminate the CRS Terms of Use early, or if Margaritaville terminates the agreement due to the franchisee's material breach, the franchisee will be responsible for paying this early termination fee. This fee compensates Camp Margaritaville for the lost revenue it would have received had the agreement continued for its full term. It is important for prospective franchisees to understand this financial obligation and factor it into their decision-making process.