Is failing to submit certificates of insurance an Event of Default for a Camp Margaritaville franchise?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, failing to promptly submit certificates of insurance to the franchisor as required under the Franchise Agreement constitutes an Event of Default. Specifically, Section 13.03 outlines various events that trigger default without an opportunity to cure, allowing the franchisor to exercise remedies, including termination of the agreement.

This means that Camp Margaritaville franchisees must ensure timely submission of insurance certificates to avoid being in default. This requirement is critical because it allows the franchisor to verify that the franchisee maintains adequate insurance coverage, protecting both parties from potential liabilities and financial losses. Failure to comply can lead to serious consequences, including termination of the franchise agreement.

It is important for prospective Camp Margaritaville franchisees to understand all the requirements for maintaining the franchise in good standing, including insurance obligations. Maintaining proper documentation and adhering to deadlines for submitting certificates of insurance is crucial for avoiding default and ensuring the long-term success of the franchise.