What happens if a proposed Camp Margaritaville Management Company is not approved by the Franchisor?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
an id="page-124-2">Section 12.01 Assignment by Franchisor. Franchisor may assign its rights or delegate its obligations under this Agreement to: (a) any Affiliate; (b) any secured lender; or (c) any Person that can otherwise comply alone or in combination with Franchisor and its Affiliates with all requirements as set forth in this Agreement.
Section 12.02 Assignment or Transfer by Franchisee; Change of Control.
- (a) Transfer. In the event that Franchisee desires to effect a Change of Control or assign, sublicense or transfer its rights and/or obligations under this Agreement (each, a "Transfer"), Franchisee shall provide Franchisor notice of such anticipated Transfer as soon as reasonably practicable but in no event less than 30 days before the Transfer is to occur. Accompanying such notice, the transferee shall submit a copy of the then-current franchise application and the then-current application fee.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, if a franchisee desires to transfer their rights and obligations under the agreement, they must notify Camp Margaritaville. As part of this process, the proposed transferee must submit a copy of the current franchise application and pay the current application fee. Camp Margaritaville will then determine whether to approve the transfer within 15 calendar days, and such approval will not be unreasonably withheld if certain conditions are met.
One of the conditions for transfer approval is that the transferee's proposed management company, if different from the current one, must meet Camp Margaritaville's standards for management companies. This includes completing the required training programs. If the proposed management company does not meet these standards or complete the training, Camp Margaritaville may not approve the transfer.
If the transfer is not approved due to the proposed management company's failure to meet the franchisor's standards, the franchisee would need to find a management company that meets Camp Margaritaville's requirements or potentially forgo the transfer. This ensures that any new management maintains the brand's standards and quality, protecting the Camp Margaritaville brand and system standards.