Is a Camp Margaritaville franchisee entitled to compensation for sales of Branded Merchandise that take place through alternative channels of distribution?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve all rights not specifically granted to you under the Franchise Agreement. We reserve the right to sell, or license others to sell, competitive or identical goods or services (whether under the Licensed Marks or under different trademarks) through alternative channels of distribution in any location, including to persons who may be your customers. Examples of alternative channels of distribution include sales of Merchandise containing the Camp Margaritaville Intellectual Property ("Branded Merchandise") and other items over the Internet, through sales catalogs, through department stores, through other Margaritaville facilities, or through any other facility or method of distribution other than your Resort. Currently, we sell Branded Merchandise over the Internet. You are not entitled to any compensation for sales that take place through alternative channels of distribution.
Source: Item 12 — TERRITORY (FDD pages 55–57)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are not entitled to compensation for sales of branded merchandise through alternative channels of distribution. Camp Margaritaville retains the right to sell, or license others to sell, competitive or identical goods or services through alternative channels of distribution, even to potential customers of a franchisee's resort.
This includes sales of merchandise containing Camp Margaritaville Intellectual Property over the Internet, through sales catalogs, department stores, other Margaritaville facilities, or any other distribution method besides the franchisee's resort. Camp Margaritaville currently sells branded merchandise over the Internet.
This policy has significant implications for franchisees. It means that Camp Margaritaville can generate revenue from branded merchandise sales outside of the franchise locations without sharing any of that revenue with the franchisees. While franchisees can advertise their resort anywhere in the world, they cannot sell branded merchandise through the Camp Margaritaville System Website or otherwise through the internet.
Prospective franchisees should consider the potential impact of this policy on their revenue and profitability. They should also inquire about Camp Margaritaville's plans for alternative channels of distribution and how those plans might affect their business.