Is a Camp Margaritaville franchisee guaranteed an exclusive territory?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
location, the location of other Margaritaville-branded hotels, resorts, and venues, and the appropriateness of any potential new location for Camp Margaritaville Resort.
Territory and Competition
You may operate your Resort only from the site that you select, and we accept. In special circumstances, when in our sole judgment, special considerations warrant, we may grant exclusive or protected areas where another Resort may not be franchised. These special circumstances shall only apply to a specific site and for the franchising of only a single Resort.
Unless such special circumstances exist, as determined by us, and we explicitly agree, you will not receive an exclusive territory. You may face competition from other franchisees from outlets that we own, or from other channels of distribution or competitive brands that we or our affiliates control.
In certain circumstances, we may agree to provide you with an "Area of Protection" within the Franchise Agreement. We typically define the Area of Protection as the immediate area surrounding the Resort, using geographic references such as streets, or miles surrounding the Resort (which may be defined as the radius surrounding the Resort or as driving miles, depending on the location).
Source: Item 12 — TERRITORY (FDD pages 55–57)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are generally not guaranteed an exclusive territory. The FDD states that unless special circumstances exist and Camp Margaritaville explicitly agrees, a franchisee will not receive an exclusive territory. These special circumstances apply only to a specific site and the franchising of a single resort. Franchisees may face competition from other franchisees, outlets owned by Camp Margaritaville, other distribution channels, or competitive brands controlled by Camp Margaritaville or its affiliates.
However, Camp Margaritaville may grant an "Area of Protection" (AOP) in the Franchise Agreement, typically defined as the immediate area surrounding the Resort, using geographic references such as streets or miles. The size of the AOP varies depending on the Resort's size and location and is based on mutual agreement. If granted an AOP, Camp Margaritaville will not open or authorize a third party to open a Resort using the same or similar branding during the AOP Term.
It's important to note that the Area of Protection does not apply to other lodging brands licensed or franchised by Camp Margaritaville or its affiliates, which may include brands with "by Margaritaville" in their branding. The AOP also does not apply to other types of lodging properties such as hotels, resorts, residential dwellings, condos, apartments, active adult living communities, timeshares, and/or student housing. Furthermore, Camp Margaritaville reserves the right to sell competitive or identical goods or services through alternative channels of distribution, such as the Internet or department stores, even within a franchisee's Area of Protection.
Prospective Camp Margaritaville franchisees should carefully consider the potential for competition from other Camp Margaritaville branded businesses and alternative distribution channels when evaluating the franchise opportunity. They should also discuss the possibility of obtaining an Area of Protection and the terms of such protection with Camp Margaritaville before signing a Franchise Agreement.