What is the exception to the early termination fee for Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer may terminate these CRS Terms of Use, without liability of any kind or nature, in the event that the Property is sold to an unrelated third party as and if permitted by the Branding Agreement. Customer will give Margaritaville at least ninety (90) days advance written notice (unless a shorter notice period is allowed by the Branding Agreement) and will ensure that all invoices for services for such Property have been paid through the termination date.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee may terminate the CRS (Central Reservation System) Terms of Use without incurring any liability if the Camp Margaritaville property is sold to an unrelated third party, provided that such a sale is permitted by the Branding Agreement.
In the event of such a sale, the franchisee must give Camp Margaritaville at least ninety days' advance written notice, unless the Branding Agreement allows for a shorter notice period. Additionally, the franchisee is responsible for ensuring that all invoices for services related to the property are paid up to the termination date.
This exception to the early termination fee provides a significant benefit to Camp Margaritaville franchisees, as it allows them to exit the CRS agreement without financial penalty in the event of a sale of the property. This is a fairly standard clause in franchise agreements, as it allows for business flexibility in the event of a sale.