Does a Camp Margaritaville franchisee acquire an interest in Confidential Information?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
the operating results and financial performance of Camp Margaritaville Resorts other than the Resort; (10) graphic designs and related intellectual property; and (11) any negotiated provisions of the Franchise Agreement.
You will not acquire any interest in Confidential Information, other than the right to use certain Confidential Information as we specify while developing and operating the Resort during the Franchise Agreement's term. Confidential Information is proprietary and includes our and our affiliate's trade secrets. You: (a) must not use Confidential Information in any other business or capacity; (b) must keep confidential each item that is a part of Confidential Information, both during and after the Franchise Agreement's term (afterward for as long as the item is not generally known in the Resort industry); (c) must not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other
tangible form; and, (d) must adopt and implement reasonable procedures that we periodically specify to prevent unauthorized use or disclosure of Confidential Information.
Confidential Information does not include: (i) information in the public domain, provided that it did not fall into the public domain by your unauthorized use; (ii) information that was in your possession prior to disclosure or was disclosed by a third party who had no confidentiality obligations to us; (iii) information that is required to be disclosed by Applicable Law, but only to the extent required and upon prior written notice to us; and (iv) information you may be required to disclose to enforce your rights under a duly executed Franchise Agreement with us. However, if we designate any information as Confidential Information, anyone who claims that it is not Confidential Information must prove that one of these exclusions is satisfied.
All information and data relating to or derived from the Resort's guests and other customers, whether obtained from the guest or customer or from any other source, including names, preferences, and other information about the guests' or customers' experiences and/or purchases, and including, but not limited to, information stored in the Resort's CRS, CRM, Loyalty, PMS , or any other system that collects guest data or behavior (collectively "Guest Information") is and shall remain our (and our affiliates') property . You shall provide us with access to all Guest Information in your possession or control on a regular basis, and we have the right to access the Resort's Computing Environment upon request to review and retrieve Guest Information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 59–62)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees do not acquire any ownership interest in the brand's Confidential Information. However, franchisees are granted the right to use certain Confidential Information as specified by Camp Margaritaville while developing and operating their resort during the term of the Franchise Agreement. This means that while franchisees can utilize the information to run their Camp Margaritaville location, they do not own it and their usage is subject to the franchisor's control and the terms of the agreement.
The Confidential Information that franchisees have access to is proprietary and includes trade secrets of Camp Margaritaville and its affiliates. Franchisees are explicitly prohibited from using this Confidential Information in any other business or capacity outside of their Camp Margaritaville franchise. They are obligated to maintain the confidentiality of this information both during the term of the Franchise Agreement and after its termination, as long as the information remains not generally known in the resort industry. This obligation extends to preventing unauthorized copying of Confidential Information, whether disclosed electronically or in tangible form, and implementing reasonable procedures to prevent unauthorized use or disclosure.
Camp Margaritaville also requires franchisees to promptly disclose any inventions, innovations, or discoveries related to the resort that are based on the Camp Margaritaville System. These Innovations become the sole and exclusive property of Camp Margaritaville, considered works made-for-hire. Franchisees cannot use any Innovation without prior written consent from Camp Margaritaville, and if an Innovation does not qualify as a work made-for-hire, the franchisee must assign ownership and all related intellectual property rights to Camp Margaritaville. This ensures that any improvements or new ideas developed within the franchise system benefit the franchisor and the overall brand, rather than the individual franchisee.
Furthermore, Camp Margaritaville mandates that all individuals with access to Confidential Information, such as General Managers and other employees, sign a Confidentiality Agreement. If the franchisee is a corporation, limited liability company, or limited partnership, Camp Margaritaville may also require shareholders, members, and limited partners to sign a similar agreement. This comprehensive approach to protecting Confidential Information highlights the importance Camp Margaritaville places on safeguarding its proprietary information and maintaining a consistent brand experience across all franchise locations.