Must a Camp Margaritaville franchisee provide copies of insurance policies to the franchisor before opening?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 2.09 Conditions for Opening. Franchisee must not open or begin operating the Resort until:
(a) Franchisee has properly developed and equipped the Resort in compliance with this Agreement and all Applicable Law;
(b) the Training Program has been completed in Franchisor's commercially reasonable discretion;
(c) all amounts then due to Franchisor have been paid;
(d) Franchisee has obtained all required certificates of occupancy, licenses, and permits to operate the Resort, including without limitation, appropriate liquor licenses to permit alcohol beverages to be sold at the Resort;
(e) Franchisee has given Franchisor copies of all insurance policies required under this Agreement, or such other evidence of insurance coverage and payment of premiums as Franchisor requests;
(f) Franchisee has submitted to Franchisor a written certification that the Resort complies with the approved Design Plans; was constructed in compliance with the PIP (if applicable pursuant to Section 2.04), Design Standards, Camp Margaritaville System and System Standards; has technology properly installed, tested and deployed in compliance all Applicable Law (and the TIP, if applicable pursuant to Section 2.05), together with any other certifications from Franchisee's architect and/or other professionals as Franchisor may reasonably require;
(g) Franchisor conducts a final inspection of the Resort once the Resort is ready to open for business; and
(h) For adaptive reuses, Franchisor may require Franchisee, in Franchisor's sole discretion, to close for a period of time to run concurrently with and not to exceed the training described in Section 3.01(b).
Franchisee agrees to open the Resort within 10 days after Franchisor has conducted a final pre-opening inspection and given Franchisee its written authorization to open the Resort. Franchisee shall immediately notify the Franchisor of the first date of operation ("Opening Date") after receiving such authorization.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee must provide copies of all required insurance policies to the franchisor before opening their resort. Specifically, Section 2.09(e) states that the franchisee must provide copies of all insurance policies required under the agreement or other evidence of coverage and premium payments as requested by Camp Margaritaville. This is a condition that must be met before the franchisee can open or begin operating the resort.
This requirement ensures that Camp Margaritaville franchisees have adequate insurance coverage in place from the outset, protecting both the franchisee and the franchisor from potential liabilities and financial losses. It is a standard practice in franchising to ensure brand consistency and protect the overall network.
Furthermore, Section 10.05(b) states that the franchisee will deliver to Camp Margaritaville a certificate of insurance (and a certified copy of such insurance policy if requested) evidencing the required insurance. This clause emphasizes the ongoing obligation to maintain and provide proof of insurance coverage throughout the term of the franchise agreement, not just before opening. This ensures continuous compliance with the insurance requirements set forth by Camp Margaritaville.