What is the impact on MVE's obligations if Camp Margaritaville fails to follow MVE's instructions?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 13.04 Default by Owner, General Manager or Management Company. Any act or omission by any Owner, General Manager or Management Company shall be deemed an act or omission by Franchisee for purposes of determining whether Franchisee is in default pursuant to this Article XIII.
Section 13.05 No Waiver. In no event shall any failure of Franchisor to provide notice or enforce any available remedy upon the occurrence of an Event of Default be deemed to be a waiver of its right to exercise any such remedy or its right to enforce all obligations and full performance of this Agreement as described herein.
ARTICLE XIV. TERMINATION AND REMEDIES
Section 14.01 Franchisor's Remedies. Upon Franchisee's failure to timely cure any Event of Default as described in Section 13.02, upon an Event of Default under Section 13.03, or upon Franchisee's failure to cure any event of noncompliance under this Agreement or the System Standards (whether or not such failure constitutes an Event of Default), within 30 days of being notified of such failure in writing by Franchisor, Franchisor may, in its sole discretion, exercise any of the following remedies:
- (a) Termination of this Agreement;
- (b) Suspend access to the CRS provided that Franchisee shall remain responsible for all costs of participation;
- (c) Suspend access to any advertising or marketing materials or assistance provided for franchisees in the Camp Margaritaville System;
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, any action or failure to act by an Owner, General Manager, or Management Company is considered an action or failure by the franchisee. This means Camp Margaritaville will hold the franchisee responsible for any failures, regardless of who specifically caused the issue. This could lead to the franchisee being in default of the franchise agreement.
Camp Margaritaville can take action against a franchisee for not complying with the franchise agreement, system standards, or manual. Specifically, if a franchisee fails to comply with obligations under the agreement, system standards, or the manual on three or more separate occasions within 12 consecutive months, or on two or more separate occasions within 6 consecutive months, Camp Margaritaville can consider this an event of default. This applies whether or not Camp Margaritaville provides formal written notice or whether the franchisee corrects the failures.
If a franchisee fails to address an event of default, Camp Margaritaville has several options. They can terminate the franchise agreement, suspend access to the Central Reservation System (CRS), or suspend access to advertising and marketing materials. Even if access to the CRS is suspended, the franchisee remains responsible for all associated costs. Camp Margaritaville's failure to enforce a remedy for a default does not waive its right to enforce any remedy or the full performance of the agreement.