Can a Camp Margaritaville franchisee charge a guest a higher rate than the reservations center specifies?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Margaritaville shall supply Customer with procedures for modifying rates.
- Customer agrees to honor each reservation at the confirmed rate, terms and reservation period, provided that such reservation holder has complied with the applicable rules relating to such reservation. In the event that Customer cannot provide an overnight accommodation to a guest due to overbooking, lack of reservation record, human errors or any other reasons, Customer will be responsible for providing an alternative accommodation for such guest. Customer also agrees to cover the reasonable expenses incurred by the guest in obtaining such accommodations; provided that Margaritaville shall be liable for any such costs, up to an amount not to exceed one percent of the invoice for services rendered under these CRS Terms of Use for the then-current month, in the event Margaritaville (or the Third-Party Call Center Provider) has failed to input proper information into the CR System or other applicable reservation system. Customer agrees to indemnify and hold Margaritaville harmless from any liability in connection with Customer's failure to honor a confirmed reservation, or in connection with improper charges imposed on a reservation holder. Subject to Margaritaville's (or the Third-Party Call Center Provider's) obligation to input proper information into the CR System, if Margaritaville makes any payment to or enters into settlement with a holder of a reservation with respect to a claim that Customer or Property failed to provide accommodations as confirmed, or charged a holder of a reservation improperly, Customer and the Property will immediately, on demand, pay such amounts to Margaritaville.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 63–64)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees must honor reservations at the confirmed rate, terms, and reservation period, assuming the guest has followed the applicable rules. However, Margaritaville provides franchisees with procedures for modifying rates. This suggests that while franchisees must generally honor the initially confirmed rate, there are mechanisms in place to adjust rates under certain circumstances, according to Margaritaville's procedures.
If a Camp Margaritaville franchisee cannot provide accommodations at the confirmed rate due to overbooking, lack of reservation record, human errors, or any other reason, the franchisee is responsible for providing alternative accommodations for the guest and covering reasonable expenses. However, Margaritaville's liability for these costs is capped at one percent of the invoice for services rendered under the CRS Terms of Use for that month, particularly if Margaritaville or the Third-Party Call Center Provider failed to input proper information into the reservation system.
The franchisee is responsible for indemnifying Margaritaville from any liability connected to the franchisee's failure to honor a confirmed reservation or from improper charges imposed on a reservation holder. If Margaritaville makes any payment or settlement to a reservation holder due to the franchisee's failure to provide accommodations as confirmed or due to improper charges, the franchisee must immediately reimburse Margaritaville for those amounts. This arrangement underscores the importance of franchisees adhering to confirmed rates and managing reservations accurately to avoid financial repercussions.