Which items in the Camp Margaritaville Disclosure Document discuss the franchisee's obligations for pre-opening purchases and leases?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
uch expiration, Franchisee must meet all obligations applicable upon termination or expiration as set forth in Article XVI herein. Franchisee agrees that this Agreement does not grant Franchisee any automatic right to the Renewal Term and that Franchisor is not obligated to provide Renewal Consent.
Section 1.07 No Restrictions. Franchisee's rights under this Agreement are nonexclusive in all respects. Franchisor and its Affiliates have the right, without restriction, to engage in any and all activities Franchisor and they desire (including with respect to any and all types of lodging facilities), at any time and place, whether or not using the Camp Margaritaville Intellectual Property or any aspect of the Camp Margaritaville System, and whether or not those activities compete with the Resort. Without limiting the foregoing, Franchisee acknowledges that Franchisor's Affiliates currently operate other franchised and nonfranchised systems for lodging facilities and other accommodations and hospitality affiliations that use different brand names, trademarks, and service marks, including those with the "Margaritaville" name as part of their brand name, some of which might operate and have facilities near the Site during the Term, that will compete directly with Franchisee. Franchisor and its Affiliates may use or benefit from, among other things, common computer systems, administrative systems, reservation systems, purchasing systems, marketing services, and personnel. Franchisee will have no right to pursue any claims, demands, or damages as a result of these activities, whether under breach of contract, unfair competition, implied covenant of good faith and fair dealing, divided loyalty, or other theories.
ARTICLE II. DEVELOPMENT AND OPENING OF THE RESORT
Section 2.01 Resort Development. Franchisee agrees to develop the Resort in accordance with the Camp Margaritaville System's details, as set forth in the System Standards or otherwise in writing. Franchisee must bear the entire cost of developing and constructing the Resort, including professional services, financing, insurance, licensing, contractors, permits and FF&E.
Section 2.02 Designer. In the interest of maintaining a clear and continuing interpretation of the final design of the Resort, Franchisee shall hire The McBride Company (or such other design firm as Franchisor may designate from time to time) as the lead designer of the Resort ("Designer") within 90 days of signing this Agreement. Franchisee may use, with Franchisor's pre-approval, another lead designer provided that The McBride Company is hired as a consultant to review and approve the final design of the Resort.
Section 2.03 Design Plans. Franchisee shall provide Franchisor with all design plans for the Resort prior to implementing any such plans. The design plans shall include all aspects of the design, architecture, construction and fit-out of the Resort, including all interior and exterior components and proposed budget ("Design Plans"). These Design Plans must be submitted to Franchisor for approval within 9 months of the Effective Date. Such Design Plans shall comply with the then-current System Standards relating to the design of all similarly situated Camp Margaritaville Resorts. Franchisor shall approve or disapprove of such Design Plans on a commercially reasonable basis, and within 30 days after its receipt of such Design Plans. Without limiting the foregoing, the Resort shall be constructed with a view toward creating an environment similar to Franchisor's current Design Standards and in accordance with all Applicable Law. Franchisor agrees that once Franchisee has begun implementing Design Plans that have been approved by Franchisor, such approval may not be revoked or materially revised, although Franchisor, in its sole discretion, shall be entitled to make modifications to the System Standards from time to time pursuant to Sections 3.02 and 4.06 and, following the 3rd anniversary of the Opening Date, Franchisee shall implement those modifications in accordance with the terms herein. Franchisor shall have the right, in its sole discretion, to delay the opening of the Resort if the Design Plans are not approved and implemented pursuant to this Section 2.03.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 45–46)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, Item 23 (Receipts) refers to sections within the agreement that outline the franchisee's obligations regarding pre-opening requirements. Specifically, Section 2.01, titled "Resort Development," states that the franchisee is responsible for bearing the entire cost of developing and constructing the resort. This includes expenses related to professional services, financing, insurance, licensing, contractors, permits, and FF&E (furniture, fixtures, and equipment).
Section 2.08(a) states that the franchisee cannot open the resort until they have satisfied the franchisor's pre-opening conditions outlined in Section 2.09. Section 2.10 discusses the franchisor's pre-opening obligations, including reviewing and approving design plans and providing guidance during the resort's development or conversion. However, it clarifies that the franchisor's approval does not guarantee compliance with applicable laws and does not assume liability for the resort's construction or renovation. The franchisee is responsible for ensuring the resort complies with system standards, applicable laws, and permit requirements.
In practical terms, a prospective Camp Margaritaville franchisee should carefully review these sections to understand the full scope of their financial obligations during the pre-opening phase. This includes budgeting for all development and construction costs, ensuring compliance with all applicable regulations, and understanding the franchisor's role in providing guidance and approvals. It is crucial to recognize that the franchisee bears the ultimate responsibility for the resort's development and compliance, and the franchisor's involvement does not absolve them of these obligations.