Is failing to maintain sufficient inventory an Event of Default for a Camp Margaritaville franchise?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, failing to maintain sufficient inventory is indeed an Event of Default. Specifically, if a franchisee fails to maintain sufficient inventory of OS&E (Operating Supplies & Equipment), Food and Beverage Service inventory, and all other necessary products to operate the Resort in compliance with the System Standards, it constitutes an Event of Default.

This means Camp Margaritaville can take immediate action without notice if the failure to maintain sufficient inventory presents an immediate threat to public health or safety. Otherwise, Camp Margaritaville may exercise remedies such as terminating the agreement if the franchisee fails to cure any event of noncompliance under the agreement or System Standards within 30 days of written notification.

For a prospective franchisee, this underscores the importance of maintaining adequate inventory levels to ensure smooth operations and compliance with the franchise agreement. Failure to do so can lead to serious repercussions, including potential termination of the franchise agreement. Franchisees should carefully review the System Standards and Manual to understand the specific inventory requirements and ensure they have systems in place to meet those requirements consistently.