Is a Camp Margaritaville franchisee required to obtain cyber security insurance?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall obtain cyber security insurance in the amounts required by Franchisor and provide a Certificate of Insurance from the insurer to Franchisor, naming Franchisor as an additional insured of Franchisee.
Further, Franchisee shall follow industry accepted practices surrounding the patching of system vulnerabilities.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, franchisees are required to obtain cyber security insurance. The franchisee must secure this insurance in the amounts mandated by Camp Margaritaville and must furnish a Certificate of Insurance to Camp Margaritaville, designating them as an additional insured party.
This requirement ensures that both the franchisee and Camp Margaritaville are protected financially in the event of a data breach or other cyber security incident. The franchisee's responsibility extends to adhering to industry-accepted practices for patching system vulnerabilities, further safeguarding data and systems.
In the event of a security incident, the franchisee is obligated to promptly inform Camp Margaritaville in writing, investigate and correct the issue, and provide any necessary information and assistance requested by Camp Margaritaville. This includes preserving logs and data relevant to the evaluation. Franchisees must also encrypt all Guest Profile Data during storage and transmission. Camp Margaritaville may also introduce new or updated security requirements, which the franchisee must implement within sixty days of notification, bearing any associated costs.