Does the Camp Margaritaville Franchise Disclosure Document include state-specific addenda and riders?

Yes, the 2025 Camp Margaritaville Franchise Disclosure Document (FDD) includes state-specific addenda and riders that modify the standard franchise agreement to comply with state laws. These addenda and riders address specific legal requirements and franchise regulations that vary from state to state.

For example, the FDD includes addenda for California, Hawaii, Illinois, Maryland, and Minnesota. These addenda cover various topics such as franchise termination and nonrenewal rights, waivers of franchisee rights, choice of law provisions, and stipulations regarding litigation venues. The Hawaii addendum defers the payment of the application fee until Camp Margaritaville has met its pre-opening obligations and the franchisee's business has opened, a requirement imposed by the Hawaii Department of Commerce and Consumer Affairs due to the franchisor's financial condition. Similarly, the Illinois addendum states that any provision in a franchise agreement that designates jurisdiction and venue in a forum outside the State of Illinois is void, although arbitration may take place outside of Illinois.

These state-specific addenda and riders are crucial for prospective Camp Margaritaville franchisees because they outline the specific legal protections and requirements applicable in their state. Franchisees should carefully review these addenda to understand their rights and obligations under the franchise agreement, as these state-specific provisions can significantly impact the franchise relationship. By including these addenda, Camp Margaritaville ensures compliance with state franchise laws and provides franchisees with the necessary information to make informed decisions.