As of the effective date of this Camp Margaritaville Franchise Disclosure Document, what is the status of the franchise registration in California?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
MARGARITAVILLE RV RESORTS, LLC STATE REGISTRATIONS
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered, or exempt from registration, as of the Effective Date stated below:
[Item 23: RECEIPTS]
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR MARGARITAVILLE RV RESORTS, LLC STATE OF CALIFORNIA
The following paragraphs are added to the disclosure document:
OUR WEBSITES, www.margaritaville.com and www.margaritavilleresorts.com HAVE NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INVESTMENT. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INVESTMENT at www.dfpi.ca.gov.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT FOURTEEN (14) DAYS PRIOR TO THE EXECUTION OF AGREEMENT.
Item 3 is amended by adding the following:
Neither the franchisor, any person or franchise broker in Item 2 of this disclosure document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in that association or exchange.
The following paragraphs are added at the end of Item 17 of the disclosure document pursuant to regulations promulgated under the California Franchise Investment Law:
California Law Regarding Termination and Nonrenewal. California Business and Professions Code Sections 20000 through 20043 provide rights to franchisees concerning termination, transfer, or nonrenewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
Termination Upon Bankruptcy. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et. seq.).
Post-Termination Noncompetition Covenants. The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the respective agreement. These provisions may not be enforceable under California law.
Applicable Law. The Franchise Agreement requires application of the laws of the State of Florida with certain exceptions. These provisions may not be enforceable under California law.
The registration of this franchise does not constitute approval, recommendation, or endorsement by the commissioner.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, California has franchise laws that require the Franchise Disclosure Document to be registered or filed with the state, or be exempt from registration. The document is effective and may be used in California as of the effective date stated in the document, indicating that Camp Margaritaville has either filed, registered, or is exempt from registration in California.
Additionally, the California Addendum to the Franchise Disclosure Document includes specific modifications and disclosures required by California law. This addendum addresses issues such as website content review, the delivery of proposed agreements, and franchisee rights regarding termination, nonrenewal, and non-competition covenants. It also clarifies that certain provisions in the Franchise Agreement, particularly those related to termination upon bankruptcy and the application of Florida law, may not be enforceable under California law.
The FDD also states that the registration of the franchise does not constitute approval, recommendation, or endorsement by the commissioner. This is a standard disclaimer in franchise disclosure documents, meant to prevent potential franchisees from assuming that state registration implies any form of state endorsement or guarantee of the franchise's success.
In summary, Camp Margaritaville's franchise is registered, filed, or exempt from registration in California, allowing the company to offer franchises in the state. However, prospective franchisees should carefully review the California Addendum and understand the specific legal protections and requirements applicable in California, as well as the disclaimer regarding state approval.