Is a Camp Margaritaville franchisee permitted to create separate loyalty programs without approval?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
uests and customers, wherever reasonably possible, only to Camp Margaritaville Resorts or other Margaritaville-branded lodging properties, not use the Resort or the Camp Margaritaville System to promote a competing business or other lodging facility, and not divert business from the Resort to a competing business.
- Section 4.18 Loyalty Program. Franchisor has established a loyalty program to allow members to redeem awards for stays at Camp Margaritaville Resorts or otherwise enjoy Margaritaville-branded products and services ("Loyalty Program"). Franchisee agrees to participate in any such Loyalty Program pursuant to the Loyalty Program Terms of Use incorporated by reference into the Technology Agreement, which includes payment by Franchisee of a one-time set-up fee, as well as ongoing fees loyalty fees, calculated generally on a "Per Overnight Accommodation" basis. Such fees shall be updated from time-totime based on increases in the underlying charges paid by Franchisor for the Loyalty Program.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, franchisees must participate in the brand's established loyalty program. Camp Margaritaville has established a loyalty program that allows members to redeem awards for stays at Camp Margaritaville Resorts or otherwise enjoy Margaritaville-branded products and services. Franchisees are required to participate in this program, as detailed in the Technology Agreement, which includes a one-time set-up fee and ongoing loyalty fees calculated on a "Per Overnight Accommodation" basis. These fees may change over time based on the franchisor's underlying costs for the Loyalty Program.
Camp Margaritaville may use a subcontractor to administer the Loyalty Program, and franchisees must cooperate with this subcontractor to collect and share data regarding guests or potential customers. This data collection is essential for the effective management of the program.
Given the mandatory participation in Camp Margaritaville's established Loyalty Program and the requirement to adhere to the Technology Agreement, it is unlikely that a franchisee would be permitted to create a separate, unapproved loyalty program. However, the FDD does not explicitly forbid creating a separate loyalty program. A prospective franchisee should seek clarification from the franchisor regarding the possibility of implementing additional loyalty initiatives and the conditions under which they might be allowed.