Does the Camp Margaritaville franchise agreement address a franchisee's reliance on the franchise disclosure document, including any exhibit?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and unenforceable:
- (a) Representations made by the franchisor or its personnel or agents to a prospective franchisee.
- (b) Reliance by a franchisee on any representations made by the franchisor or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, specifically in California, any provision in the franchise agreement that disclaims a franchisee's reliance on the franchise disclosure document, including any exhibit, is considered against public policy and therefore void and unenforceable. This means that Camp Margaritaville franchisees in California have the right to rely on the information provided in the FDD and its exhibits. This protection ensures that franchisees are not bound by clauses that prevent them from claiming they relied on the FDD when making their investment decision.
Furthermore, the FDD states that in Hawaii and Illinois, no statement, questionnaire, or acknowledgement signed by a franchisee can disclaim reliance on any statement made by the franchisor, franchise seller, or anyone acting on behalf of the franchisor. This provision supersedes any other term in any document related to the franchise agreement. This ensures that franchisees in Hawaii and Illinois cannot waive their right to claim they relied on the franchisor's statements, providing an additional layer of protection against misleading information.
These stipulations are particularly important for prospective Camp Margaritaville franchisees as they reinforce the legal protection afforded to them, ensuring the ability to hold the franchisor accountable for the representations made during the franchise sales process. Franchisees should carefully review the FDD and related documents, understanding that they have the right to rely on the information provided and are not bound by any disclaimers to the contrary, especially in California, Hawaii, and Illinois.