Can a Camp Margaritaville franchisee use Confidential Information to operate other businesses?
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
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 resort. Confidential Information includes a wide array of proprietary assets, such as site selection criteria, design standards, operational materials, marketing techniques, guest information, and software. 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 brand integrity. 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 also adhere to confidentiality obligations.
The FDD specifies that franchisees do not acquire any ownership interest in the Confidential Information, only a limited right to use it for operating their Camp Margaritaville resort. Any inventions, innovations, or discoveries related to the resort that are based on the Camp Margaritaville system become the sole property of the franchisor. This further reinforces the franchisor's control over its proprietary information and prevents franchisees from leveraging it for independent ventures.
There are limited exceptions where information is already in the public domain (without unauthorized disclosure by the franchisee), was in the franchisee's possession prior to disclosure by Camp Margaritaville, or is required to be disclosed by law. However, the burden of proof falls on the franchisee to demonstrate that any of these exclusions apply if Camp Margaritaville designates information as confidential. Overall, the restrictions are comprehensive, ensuring that franchisees focus solely on the success of their Camp Margaritaville location without diverting proprietary knowledge to other business interests.