For a Camp Margaritaville franchise, what conditions trigger a 'Change of Control'?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
rmation.
ARTICLE XII. ASSIGNMENT, TRANSFERS, AND ENCUMBRANCES
Section 12.01 Assignment by Franchisor. Franchisor may assign its rights or delegate its obligations under this Agreement to: (a) any Affiliate; (b) any secured lender; or (c) any Person that can otherwise comply alone or in combination with Franchisor and its Affiliates with all requirements as set forth in this Agreement.
Section 12.02 Assignment or Transfer by Franchisee; Change of Control.
- (a) Transfer. In the event that Franchisee desires to effect a Change of Control or assign, sublicense or transfer its rights and/or obligations under this Agreement (each, a "Transfer"), Franchisee shall provide Franchisor notice of such anticipated Transfer as soon as reasonably practicable but in no event less than 30 days before the Transfer is to occur. Accompanying such notice, the transferee shall submit a copy of the then-current franchise application and the then-current application fee. Franchisor shall determine whether to approve the Transfer within 15 calendar days, which will not be unreasonably withheld if the following conditions are met:
- (i) the Transfer is not to a Competing Brand;
- (ii) the Transfer would not materially or detrimentally harm the Franchisor or its Affiliates;
- (iii) the transferee and each of its direct or indirect owners (if the transferee is a legal entity) has, in Franchisor's sole discretion, the necessary business experience, aptitude, and financial resources to operate the Resort and meets Franchisor's thencurrent standards for Camp Margaritaville Resorts franchisees;
- (iv) Franchisee has paid all amounts due to Franchisor and undisputed amounts due to third-party vendors related to the Resort and is in substantial compliance with this Agreement during the 60-day period prior to requesting Transfer and during the period after the request was made but before the Transfer is effective;
- (v) the transferee's proposed Management Company, if different from the current Management Company, meets Franchisor's then-current standards for Management Companies and completes the Training Program and any other training required of Management Companies at the time;
- (vi) the transferee and its ow
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a 'Change of Control' occurs when a franchisee desires to assign, sublicense, or transfer their rights and/or obligations under the Franchise Agreement. This is considered a 'Transfer' according to the document.
Before a 'Change of Control' can take place, the franchisee must provide Camp Margaritaville with a notice of the anticipated transfer at least 30 days before it is scheduled to occur. The potential transferee must also submit a copy of the current franchise application and pay the application fee.
Camp Margaritaville has 15 calendar days to decide whether to approve the transfer. Approval will not be unreasonably withheld if certain conditions are met. These conditions include ensuring the transfer is not to a competing brand, would not harm Camp Margaritaville, and that the transferee has the necessary experience and resources. The franchisee must also be in good financial standing and in substantial compliance with the agreement. If the management company is changing, the new company must meet Camp Margaritaville's standards and complete the required training. Finally, the transferee must sign Camp Margaritaville's current franchise agreement, which may differ from the original.