What fees must a Camp Margaritaville customer pay upon termination of the agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer shall remain liable for all amounts due to Margaritaville under these Terms of Use if these Terms of Use is terminated early by Customer as permitted herein or by Margaritaville due to Customer's material breach.
In the event these Terms of Use is terminated prior to the expiration of any Term for any reason other than due to a material breach of these Terms of Use by Margaritaville, Customer agrees to pay a termination fee equal to the average of the monthly payments due under these Terms of Use multiplied by the number of months remaining in the Term (less any Non-Implementation Fee paid)
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a customer may face termination fees under specific circumstances. If the customer terminates the Terms of Use early, and it's not due to a material breach by Margaritaville, the customer must pay a termination fee. This fee is calculated by multiplying the average of the monthly payments due under the Terms of Use by the number of months remaining in the term, then subtracting any Non-Implementation Fee paid.
However, there are exceptions where no termination fee is owed. If the Terms of Use are terminated because of the Master Agreement between Margaritaville and the Services Provider is terminated, the customer does not owe a termination fee. Additionally, the customer can terminate the Terms of Use without liability if the property is sold to an unrelated third party, provided this is permitted by the Branding Agreement.
It's important to note that even during a suspension period due to a breach, the customer must continue to pay all fees and other amounts due under the Terms of Use. These fees and conditions apply to the customer's use of the Platform and related services, and understanding these termination terms is crucial for managing costs and potential liabilities.