If Camp Margaritaville rescinds a suspension of a franchisee's rights, is the franchisee entitled to compensation for losses incurred during the suspension?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
During any suspension period, Franchisee must continue to pay all fees and other amounts due under, and otherwise comply with, this Agreement and all related agreements. If Franchisor rescinds any suspension of Franchisee's rights, Franchisee will not be entitled to any compensation for any fees, expenses, or losses Franchisee might have incurred due to Franchisor's exercise of any suspension right provided in this Section 14.01.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, if Camp Margaritaville rescinds a suspension of a franchisee's rights, the franchisee is not entitled to compensation for any losses incurred during the period of suspension. This includes fees, expenses, or other losses that the franchisee might have experienced as a result of Camp Margaritaville's exercise of its suspension rights.
During any suspension period, the franchisee must continue to pay all fees and other amounts due under the franchise agreement and all related agreements, and must otherwise remain in compliance with the agreement.
This policy means that a Camp Margaritaville franchisee bears the full financial risk of any suspension, even if the suspension is later lifted. A prospective franchisee should carefully consider this provision and its potential financial impact before investing in a Camp Margaritaville franchise.