In the Camp Margaritaville franchise agreement, what is the significance of the Preliminary Statement in relation to the definition of 'Camp Margaritaville Resort'?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
PRELIMINARY STATEMENT
Franchisee is the owner of, or has the right to occupy, certain real property located at the site identified in Exhibit B ("Site"). Franchisor has the right to grant franchises for the establishment and operation of Camp Margaritaville upscale RV resorts (each, a "Camp Margaritaville Resort" and collectively, the "Camp Margaritaville Resorts"). Franchisee wishes to enter into this Agreement to obtain a franchise to use the Camp Margaritaville System to operate a Camp Margaritaville Resort located at the Site (the "Resort"). The Site must contain concrete pads in a range of sizes and full water and sewer connections to accommodate a variety of recreational vehicles ("RVs") and may also contain a variety of other resort style accommodations, including tents, yurts and cabins. The Site must also contain a shower and restroom facility, laundry facility, wireless internet, cable television, and a camp store. Depending on the Site's unique geographical features, the Resort may contain a Lodge and offer a variety of additional amenities. Amenities may include Food and Beverage Service, sport courts, kids' area, swimming pools, water park, dog parks, hiking and walking trails and seasonal and other amenities that are part of the Camp Margaritaville System. In addition to other terms defined in this Agreement, the initial capitalized terms shall have the meanings set forth in Exhibit A.
ARTICLE I. GRANT OF FRANCHISE, TERM, AND TERRITORY
Section 1.01 Grant of Franchise. Franchisor grants Franchisee, and Franchisee accepts, the nonexclusive right and obligation to use the Camp Margaritaville System during the Term (defined below in Section 1.03) to build or convert, and operate, the Resort at the Site under the Camp Margaritaville Intellectual Property in accordance with this Agreement's terms.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the Preliminary Statement in the franchise agreement defines key terms and sets the stage for the agreement. Specifically, the Preliminary Statement defines what constitutes a "Camp Margaritaville Resort." It clarifies that the franchisee either owns or has the right to occupy the real property at the identified site. Camp Margaritaville has the right to grant franchises for the establishment and operation of upscale RV resorts, known as Camp Margaritaville Resorts. The franchisee then enters the agreement to obtain a franchise to operate a Camp Margaritaville Resort at the specified site.
The Preliminary Statement also outlines the requirements for the site. It must have concrete pads of varying sizes and full water and sewer connections to accommodate recreational vehicles. The site can also include other resort-style accommodations like tents, yurts, and cabins. Essential facilities include a shower and restroom facility, laundry facility, wireless internet, cable television, and a camp store. Depending on the site's geographical features, a Camp Margaritaville Resort may also feature a Lodge and additional amenities. These amenities can range from food and beverage service and sports courts to swimming pools, water parks, dog parks, and hiking trails.
Furthermore, a rider to the Camp Margaritaville Franchise Agreement states that the term "Resort" shall have the meaning set forth in the Preliminary Statement of the Agreement but shall include the Amenities. This means that the definition of "Resort" as described in the Preliminary Statement is expanded to include any authorized Amenities within the Resort. This is significant because it broadens the scope of what is considered part of the franchised Camp Margaritaville Resort, encompassing not just the basic RV site but also the additional features and services that contribute to the overall guest experience.