When does the Camp Margaritaville Franchise Agreement term begin?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 1.02 Initial Term. The term of this Agreement (the "Initial Term") will commence on the Effective Date and expire without notice on the date which is 20 years after the Opening Date, subject to its earlier termination as set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, the Initial Term of the Franchise Agreement commences on the Effective Date. The agreement then extends for a period of 20 years after the Opening Date, unless it is terminated earlier according to the terms outlined in the agreement.
This means that the franchisee's rights and obligations under the agreement, such as using the Camp Margaritaville System and Intellectual Property, begin on the Effective Date. The franchisee must also meet certain pre-opening conditions before beginning operation of the resort.
Camp Margaritaville offers the franchisee the option to renew the agreement for one additional term of 10 years, provided the franchisee meets certain conditions. These Renewal Conditions include providing written notice within a specified timeframe, fulfilling all obligations, satisfying monetary responsibilities, and complying with the Camp Margaritaville System standards.