If the Camp Margaritaville agreement is not terminated after a casualty, when must the franchisee commence reconstruction?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 15.03 Reconstruction After Casualty. If this Agreement is not terminated pursuant to Section 15.02, then Franchisee must commence reconstruction of the Resort within 90 days after the occurrence of the casualty and must diligently complete the reconstruction within 2 years after the occurrence of the casualty. The Resort must be reconstructed to at least the condition and character of the Resort immediately before the casualty occurred and Franchisee may not reopen the Resort or promote or otherwise hold the Resort out using the Camp Margaritaville Intellectual Property unless and until Franchisor determines that the reconstruction is completed in accordance with Franchisor's then-current standards. If, at the mutual agreement of the Parties, the Resort (or portions thereof) are not required to be closed, all work to repair damage shall be conducted so as to minimize interference with the Resort's operation and guests. If Franchisee fails to perform its obligations under this Section 15.03, then Franchisor has the right to terminate the Agreement effective upon written notice to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, if the franchise agreement is not terminated following a casualty event, the franchisee is obligated to begin reconstruction of the resort within 90 days of the event. The franchisee then has up to two years from the date of the casualty to complete the reconstruction.
The reconstructed resort must be at least equivalent to its condition and character immediately before the casualty. The franchisee cannot reopen, promote, or use Camp Margaritaville's intellectual property until the franchisor confirms that the reconstruction meets their current standards.
If the franchisee fails to meet these reconstruction obligations, Camp Margaritaville has the right to terminate the franchise agreement with written notice. However, if both parties agree, the resort may remain partially open during the repair work, with efforts made to minimize disruption to operations and guests.