Does the Camp Margaritaville franchisor have sole discretion in approving timeshares?

According to the 2025 Camp Margaritaville FDD, Camp Margaritaville has sole discretion regarding the approval of timeshares. Specifically, if a franchisee is authorized to operate a Lodge or Dwellings, their ability to sell and market guest rooms as timeshares is limited by Camp Margaritaville's affiliate's pre-existing agreement with Wyndham Vacation Resorts, Inc.

The FDD states that no timeshares can be marketed or offered at or in conjunction with the Resort, the Lodge, or any Dwellings unless approved by Camp Margaritaville in its sole discretion. This means that even if a franchisee has the authorization to operate a Lodge or Dwellings, they cannot proceed with timeshare marketing or sales without explicit approval from Camp Margaritaville.

This condition gives Camp Margaritaville significant control over how franchisees can utilize their properties and ensures that any timeshare offerings align with the brand's overall strategy and existing agreements. For a prospective franchisee, this highlights the importance of understanding the terms of any pre-existing agreements and the potential limitations on revenue streams like timeshares. It would be prudent to discuss the possibility of timeshare offerings during the franchise exploration process to understand the likelihood of obtaining approval.