Where can the Camp Margaritaville franchisee develop vacation dwellings using the intellectual property?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
buyer, as such gross proceeds are listed on the HUD 1 statement or as reflected as the "Due to Seller at Closing" on Line 01, "Sales Price of Property" of a Closing Disclosure;
2.12 "HOA" shall have the meaning set forth in Section 4.1.1 of this Rider;
2.13 "HOA Documents" shall have the meaning set forth in Section 4.1.1 of this Rider;
2.14 "Membership Club" shall have the meaning set forth in Section 4.1.3 of this Rider;
2.15 "Project" shall mean the Resort, Dwellings, and Vacation Rentals;
2.16 "Purchaser" shall have the meaning set forth in Section 4.1.4 of this Rider;
2.17 "Rental Management Agreement" shall have the meaning set forth in Section 4.1.5 of this Rider;
2.18 "Rental Program" shall mean a rental program offered by the Franchisee or Franchisee's Affiliate or designee to Dwelling Owners pursuant to the terms of a Rental Management Agreement in a form to be agreed to by Franchisor and Franchisee, which shall not exist unless the Dwelling Owners have the right not to rent and the right to use a rental manager not affiliated with Franchisee using qualifications which are substantially similar to the qualifications of Franchisee's Affiliate or designee;
2.19 "Rental Royalty" shall have the meaning set forth in Section 5.2 of this Rider; and
2.20 "Vacation Rentals" shall mean vacation dwellings branded with the Camp Margaritaville Intellectual Property within the Project and intended for rental through the Rental Program, excluding time shares.
3. Grant of Non-Exclusive License
- 3.1 License. Franchisor and Franchisee acknowledge that in executing this Rider and modifying certain of the defined terms in the Agreement and adding additional defined terms to the Agreement, that during the Term, subject to the terms of the Agreement, including without limitation, Article V thereof, Franchisor is granting, and Franchisee is accepting, a limited non-exclusive license develop, construct, and operate for rental and sale Dwellings and Vacation Rentals under the "Camp Margaritaville" umbrella.
- 3.2 Condition Precedent. All rights granted by Franchisor to Franchisee under this Rider are subject to the condition precedent that, within ninety (90) days after the Effective Date, Franchisee registers to sell the Dwellings and rent the Vacation Rentals in compliance with Applicable Law, including the Interstate Land Sales Full Disclosure Act, in Franchisor's commercially reasonable judgment. If such condition precedent does not occur within the specified time frame, Franchisor may terminate this Rider immediately upon notice to Franchisee at the time of such failure. If terminated pursuant to the foregoing, this Rider shall be null and void and neither Franchisor nor Franchisee shall have any claims against each other under the terms of this Rider.
4. Additional Operating Guidelines
- 4.1 Operation/Sale of Dwellings.
- 4.1.1 Homeowners Association. The Parties agree that Franchisee may establish a Homeowners' Association ("HOA") to govern the Dwellings.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, a franchisee has a limited, non-exclusive license to develop, construct, and operate dwellings and vacation rentals under the Camp Margaritaville brand. This is subject to the terms outlined in the franchise agreement, specifically Article V.
However, this right is conditional. Within 90 days of the agreement's effective date, the franchisee must register to sell the dwellings and rent the vacation rentals in compliance with applicable laws, including the Interstate Land Sales Full Disclosure Act. The franchisor must find this registration satisfactory from a commercial standpoint. Failure to meet this condition allows Camp Margaritaville to terminate the agreement.
Camp Margaritaville clarifies that neither they nor their affiliates are involved in the construction or sale of the dwellings; their role is solely as a licensor. They retain the right to enforce quality control requirements related to the Camp Margaritaville intellectual property. Upon termination or expiration of the agreement, neither the purchaser nor the Homeowners Association (HOA) has the right to use the Camp Margaritaville Intellectual Property in advertising or promotion of the dwelling or the project. During the term of the agreement, the franchisee can use the Camp Margaritaville Intellectual Property to market, advertise, promote, and sell dwellings, but this is subject to the franchisor's prior written approval.