What happens if a Camp Margaritaville franchisee is in default when they apply for renewal?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements. You should read these provisions in the agreements attached to this disclosure document.
* For purposes of the table below: "LR" refers to the Lodge Rider and "DR" refers to the Dwellings Rider
THE FRANCHISE RELATIONSHIP
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 1.02 | Initial term is twenty (20) years |
| b. | Renewal or extension of the term | Section 1.03 | If you are in good standing and satisfy certain conditions (as described in 17.c. below) are met, then you are entitled an automatic renewal of your franchise rights for one additional ten (10) year term |
| c. | Requirements for franchisee to renew or extend | Section 1.03 | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal. When renewing, you may be asked to sign a contract with materially different terms and conditions than your original Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 64–68)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee must not be in default to be eligible for renewal. The initial franchise term is twenty years, with an option for one additional ten-year term if certain conditions are met. One of these conditions is that the franchisee must be in good standing, meaning not in default, at the time of renewal.
To renew their Camp Margaritaville franchise, franchisees must provide written notice of their intent to renew 12-18 months before the expiration of the current term. They must also still have ownership of the site, agree to remodel to the Resort's then-current standards, execute the then-current form of franchise agreement, and execute the then-current release of claims against Camp Margaritaville and its affiliates. Additionally, a $50,000 renewal fee is required.
This requirement to not be in default is a fairly standard condition for franchise renewals. It protects Camp Margaritaville's brand and ensures that franchisees who continue to operate under the brand meet the franchisor's standards. Prospective franchisees should understand that maintaining compliance with the franchise agreement throughout the initial term is crucial not only for the ongoing operation of their Camp Margaritaville location but also for their ability to secure a renewal and continue benefiting from the franchise system.