What is the Camp Margaritaville franchisee's obligation regarding the amount of cyber security insurance required?
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 FDD, franchisees are required to obtain cyber security insurance. The specific amounts of cyber security insurance coverage that a franchisee must secure are determined by Camp Margaritaville. Franchisees must also provide Camp Margaritaville with a Certificate of Insurance from their insurer, which names Camp Margaritaville as an additional insured party.
This requirement ensures that franchisees have adequate protection against potential cyber threats and data breaches, which is increasingly important in today's digital landscape. By mandating specific coverage amounts and requiring Camp Margaritaville to be named as an additional insured, the franchise aims to protect both the franchisee's business and the overall brand from financial and reputational damage resulting from cyber incidents.
It is important for prospective Camp Margaritaville franchisees to discuss the required cyber security insurance amounts with the franchisor to fully understand the costs and coverage levels involved. Franchisees should also stay informed about industry best practices for cyber security and ensure they follow guidelines for patching system vulnerabilities, as required by the franchise agreement.