What is the effect on the Camp Margaritaville customer if Margaritaville terminates the agreement due to nonpayment?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
c. Nonpayment by Customer. Margaritaville may terminate these Terms of Use before the expiration date of the Term on written notice if Customer fails to pay any amount when due hereunder and such failure continues for 15 days after Customer's receipt of written notice of nonpayment.
D. Effects of Termination. Upon expiration or termination of these CRS Terms of Use, Customer shall cease to utilize the CR System. In no event shall Customer use the CR System to promote or book accommodations for any re-brand of the Property after the Term.
E. Early Termination Fee. 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.
B. Suspension for Non-Payment. In the event Customer does not pay undisputed amounts within thirty (30) days of the date of Margaritaville's invoice, Margaritaville shall have the right to suspend access to CRS Services with fifteen (15) days prior written notice to Customer until payment of such overdue amounts has been made.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, if a franchisee fails to pay amounts owed, Margaritaville can terminate the Terms of Use agreement. Specifically, Margaritaville can terminate the Terms of Use with written notice if the customer fails to pay any amount when due, and this failure continues for 15 days after the customer receives written notice of nonpayment.
Upon termination of the CRS Terms of Use, the customer must stop using the CR System. The customer cannot use the CR System to promote or book accommodations for any re-brand of the property after the term. The customer will remain responsible for all amounts due to Margaritaville if the CRS Terms of Use are terminated early by Margaritaville due to the customer's material breach.
Additionally, Camp Margaritaville has the right to suspend access to CRS Services with fifteen (15) days prior written notice to Customer until payment of such overdue amounts has been made if the customer does not pay undisputed amounts within thirty (30) days of the date of Margaritaville's invoice.