Can a Camp Margaritaville franchisee transfer their right to use Guest Information?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you a limited, revocable, non-transferrable right and license to use the Guest Information in your possession during the Term solely as necessary and allowed by Applicable Law to market to and provide services to the Resort's guests and prospective guests. Unless we (in our sole discretion) have approved in writing and in advance or as otherwise required by any Applicable Law, you shall not: (i) use the Guest Information for any other purpose; (ii) disclose, sell, share, assign, lease or otherwise provide Guest Information to third parties; or (iii) commercially exploit Guest Information. To the extent you acquire any rights in the Guest Information by operation of law, at our request, you must execute and deliver to us any other documents that may be necessary or desirable to preserve, or enable us to enforce, our rights with respect to the Guest Information. You shall limit the disclosure of Guest Information to only those personnel who have a need to know, who have been advised of the proprietary nature of the Guest Information, and who have acknowledged the obligation to maintain the confidentiality of the Guest Information in accordance with the terms of this Agreement and shall only use the Guest Information to market to and provide services to the Resort's guests and prospective guests.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 59–62)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees have a limited right to use Guest Information, but this right is explicitly non-transferable. The franchisee's right to use Guest Information extends only as necessary to market to and provide services to the resort's guests and prospective guests, and this usage must comply with applicable laws. This means a franchisee cannot sell, lease, share, or assign Guest Information to any third party unless Camp Margaritaville provides written approval or if required by law.
The FDD emphasizes the protection and control of Guest Information. Camp Margaritaville retains ownership of all Guest Information, which includes data collected from guests and customers, such as names, preferences, and purchase history, stored in various systems like CRS, CRM, Loyalty, and PMS. Franchisees are required to provide Camp Margaritaville with regular access to this information and allow them to review and retrieve it from the resort's computing environment.
This arrangement ensures that Camp Margaritaville maintains consistent brand standards and customer relationship management across all franchise locations. It also allows Camp Margaritaville to leverage Guest Information for broader marketing and strategic initiatives. Franchisees must limit the disclosure of Guest Information to personnel with a need to know, who are aware of its proprietary nature, and who acknowledge their obligation to maintain its confidentiality.
Furthermore, franchisees are responsible for maintaining a written information security incident plan and must notify Camp Margaritaville within 24 hours of any actual or suspected breach of security or unauthorized access to Guest Information. They are also required to investigate, correct, and mitigate any such incidents, and provide Camp Margaritaville with all necessary information and assistance for incident response and forensics investigations. These measures highlight the importance of protecting Guest Information and the potential liabilities associated with its misuse or compromise.