What is the length of the initial franchise term for a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements. You should read these provisions in the agreements attached to this disclosure document.
* For purposes of the table below: "LR" refers to the Lodge Rider and "DR" refers to the Dwellings Rider
THE FRANCHISE RELATIONSHIP
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 1.02 | Initial term is twenty (20) years |
| b. | Renewal or extension of the term | Section 1.03 | If you are in good standing and satisfy certain conditions (as described in 17.c. below) are met, then you are entitled an automatic renewal of your franchise rights for one additional ten (10) year term |
| c. | Requirements for franchisee to renew or extend | Section 1.03 | Your renewal right permits you to remain as a franchisee after the initial term of your Franchise Agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal. When renewing, you may be asked to sign a contract with materially different terms and conditions than your original Franchise Agreement. Fra |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 64–68)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the initial franchise term is twenty (20) years, as stated in Section 1.02 of the franchise agreement. This means that a new franchisee will operate their Camp Margaritaville location under the franchise agreement for this period, assuming compliance with the agreement's terms and conditions.
Camp Margaritaville also offers an option for renewal or extension of the franchise term. If a franchisee is in good standing and meets certain conditions, they are entitled to an automatic renewal of their franchise rights for one additional ten (10) year term. The requirements for renewal are detailed in Section 1.03 of the franchise agreement.
To renew the franchise agreement, the Camp Margaritaville franchisee must meet several conditions. These include providing written notice of intent to renew 12-18 months prior to the expiration of the initial term, not being in default of the agreement, still having ownership of the site, agreeing to remodel to the Resort's then-current standards, executing the then-current form of franchise agreement, and executing a release of claims against the franchisor and its affiliates. Additionally, the franchisee must pay a $50,000 renewal fee. These conditions are typical in franchising, as franchisors want to ensure that franchisees continue to meet brand standards and operate successfully.