Can a Camp Margaritaville franchisee use Confidential Information in any other business?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not acquire any interest in Confidential Information, other than the right to use certain Confidential Information as we specify while developing and operating the Resort during the Franchise Agreement's term. Confidential Information is proprietary and includes our and our affiliate's trade secrets. You: (a) must not use Confidential Information in any other business or capacity; (b) must keep confidential each item that is a part of Confidential Information, both during and after the Franchise Agreement's term (afterward for as long as the item is not generally known in the Resort industry); (c) must not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other
tangible form; and, (d) must adopt and implement reasonable procedures that we periodically specify to prevent unauthorized use or disclosure of Confidential Information.
Confidential Information does not include: (i) information in the public domain, provided that it did not fall into the public domain by your unauthorized use; (ii) information that was in your possession prior to disclosure or was disclosed by a third party who had no confidentiality obligations to us; (iii) information that is required to be disclosed by Applicable Law, but only to the extent required and upon prior written notice to us; and (iv) information you may be required to disclose to enforce your rights under a duly executed Franchise Agreement with us. However, if we designate any information as Confidential Information, anyone who claims that it is not Confidential Information must prove that one of these exclusions is satisfied.
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 are explicitly prohibited from using Confidential Information in any business other than their Camp Margaritaville franchise. Confidential Information includes a wide array of proprietary details, such as site selection criteria, resort design, training materials, operational methods, marketing strategies, guest information, supplier knowledge, software, financial performance data, and graphic designs. This restriction applies both during the term of the Franchise Agreement and even after it expires, as long as the information remains non-public within the resort industry.
This restriction is a standard practice in franchising, designed to protect the franchisor's competitive advantage and proprietary systems. Camp Margaritaville franchisees must maintain the confidentiality of this information and implement procedures to prevent unauthorized use or disclosure. This includes not making unauthorized copies of Confidential Information and ensuring that employees with access to this information are aware of their confidentiality obligations.
The FDD also specifies certain exceptions to what constitutes Confidential Information. Information already in the public domain (without unauthorized disclosure by the franchisee), information the franchisee possessed prior to disclosure by Camp Margaritaville, information disclosed by a third party without confidentiality obligations, and information required to be disclosed by law are not considered Confidential Information. However, the burden of proof falls on the franchisee to demonstrate that any of these exceptions apply if Camp Margaritaville designates information as confidential.
In practical terms, a Camp Margaritaville franchisee must be extremely careful about how they use and protect the Confidential Information they receive. They cannot leverage this information to start or operate any other business, even after their franchise agreement ends. This obligation underscores the importance of understanding the scope of Confidential Information and implementing robust security measures to prevent unauthorized disclosure or use.