Is a Camp Margaritaville franchisee required to sign a contract with potentially different terms and conditions when renewing their franchise agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements. You should read these provisions in the agreements attached to this disclosure document.
* For purposes of the table below: "LR" refers to the Lodge Rider and "DR" refers to the Dwellings Rider
THE FRANCHISE RELATIONSHIP
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 1.02 | Initial term is twenty (20) years |
| b. | Renewal or extension of the term | Section 1.03 | If you are in good standing and satisfy certain conditions (as described in 17.c. below) are met, then you are entitled an automatic renewal of your franchise rights for one additional ten (10) year term |
| c. | Requirements for franchisee to renew or extend | Section 1.03 | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal. When renewing, you may be asked to sign a contract with materially different terms and conditions than your original Franchise Agreement. Franchisee must pay a $50,000 renewal fee and comply with the conditions precedent to renewal, including: written notice of intent 12-18 months prior to expiration; not be in default; franchisee still has ownership of site; franchisee agrees |
| Provision | Section in franchise or other agreement | Summary | |
| ---- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| to remodel to the Resort's then | |||
| current standards; execution of |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 64–68)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees may be required to sign a contract with materially different terms and conditions than their original franchise agreement when renewing. To remain a franchisee after the initial term, franchisees must meet all required conditions for renewal. The initial franchise term is twenty years, with an option for one additional ten-year term if the franchisee is in good standing and satisfies specific conditions.
To renew their Camp Margaritaville franchise agreement, franchisees must provide written notice of intent 12-18 months before the expiration of the current term. They must not be in default and must still have ownership of the site. Additionally, franchisees must agree to remodel to the Resort's then-current standards and execute the then-current form of the franchise agreement.
Furthermore, franchisees must execute the then-current release, absolving Camp Margaritaville and its affiliates from any and all claims. A renewal fee of $50,000 is also required. This means that the renewal process is not merely a formality but involves significant financial investment and agreement to updated terms, which could substantially differ from the original agreement.
Prospective franchisees should be aware that the terms and conditions under which they operate their Camp Margaritaville franchise could change significantly upon renewal. It is crucial to carefully review the then-current franchise agreement and release to understand the obligations and potential impacts before committing to the renewal.