Who is liable for breaches of the confidentiality agreement by Representatives concerning Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer shall be responsible for, and remain liable to, Margaritaville for the actions and omissions of all employees, contractors or other representatives who are engaged by Customer concerning the treatment of Guest Information and Reservation Data as if they were Customer's s own actions and omissions.
Customer shall notify Margaritaville of (i) any act or omission that compromises either the security, confidentiality or integrity of Guest Information and Reservation Data collected from end users in connection with these CRS Terms of Use or (ii) a breach or alleged breach of these CRS Terms of Use relating to the privacy practices of Customer in accordance with the terms of the Branding Agreement.
Customer shall likewise promptly notify Margaritaville any suspicious or malicious activity, potential vulnerabilities, or security weaknesses of which it becomes aware by emailing
Margaritaville contact and in accordance with the terms of the Branding Agreement. Customer shall cooperate with Margaritaville as reasonably requested to investigate any security breach, and Customer shall use best efforts to remedy any security breach attributable to Customer as soon as commercially possible and prevent any further security breach at Customer's expense in accordance with applicable privacy rights, laws, regulations, and standards. In the event of any unauthorized access to and acquisition of Guest Information and Reservation Data by a third party while in the possession of Customer or in transit from Customer, which materially compromises the security, confidentiality or integrity of such Guest Information and Reservation Data ("Data Security Breach"), Customer shall promptly investigate the cause of such Data Security Breach and shall at its sole expense take all reasonable steps to: (i) mitigate any harm caused to affected individuals, (ii) prevent any future reoccurrence, and (iii) comply at its sole expense with applicable data breach notification laws.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the customer (which would be the franchisee) is responsible and liable to Margaritaville for the actions and omissions of all employees, contractors, or other representatives engaged by the customer concerning the treatment of Guest Information and Reservation Data. This liability extends as if these actions and omissions were the customer's own. This means that if a franchisee's employee breaches the confidentiality agreement regarding guest information, the franchisee is held responsible to Camp Margaritaville for that breach.
This responsibility includes the franchisee's duty to notify Margaritaville of any act or omission that compromises the security, confidentiality, or integrity of Guest Information and Reservation Data. It also includes notifying Margaritaville of any breach or alleged breach of the CRS Terms of Use relating to the privacy practices of the customer, as outlined in the Branding Agreement. The franchisee must also promptly report any suspicious or malicious activity, potential vulnerabilities, or security weaknesses.
The franchisee is expected to cooperate with Camp Margaritaville in investigating any security breach and must use their best efforts to remedy any security breach attributable to them as soon as commercially possible. All of this must be done at the franchisee's expense, adhering to applicable privacy rights, laws, regulations, and standards. In the event of unauthorized access to Guest Information and Reservation Data while in the franchisee's possession, the franchisee is obligated to investigate the cause, mitigate harm to affected individuals, prevent future occurrences, and comply with data breach notification laws, all at their own expense.
This allocation of liability places a significant responsibility on the Camp Margaritaville franchisee to ensure that all individuals working for them, who have access to guest information, are properly trained and adhere to the confidentiality and data protection protocols. The franchisee must implement robust security measures and monitoring systems to prevent breaches and to quickly address any incidents that may occur. This also highlights the importance of understanding and complying with the terms of the Branding Agreement and all applicable privacy laws.