How long does the Franchisor have to determine whether to approve a transfer of a Camp Margaritaville franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Transfer. In the event that Franchisee desires to effect a Change of Control or assign, sublicense or transfer its rights and/or obligations under this Agreement (each, a "Transfer"), Franchisee shall provide Franchisor notice of such anticipated Transfer as soon as reasonably practicable but in no event less than 30 days before the Transfer is to occur. Accompanying such notice, the transferee shall submit a copy of the then-current franchise application and the then-current application fee. Franchisor shall determine whether to approve the Transfer within 15 calendar days, which will not be unreasonably withheld if the following conditions are met:
- (i) the Transfer is not to a Competing Brand;
- (ii) the Transfer would not materially or detrimentally harm the Franchisor or its Affiliates;
- (iii) the transferee and each of its direct or indirect owners (if the transferee is a legal entity) has, in Franchisor's sole discretion, the necessary business experience, aptitude, and financial resources to operate the Resort and meets Franchisor's thencurrent standards for Camp Margaritaville Resorts franchisees;
- (iv) Franchisee has paid all amounts due to Franchisor and undisputed amounts due to third-party vendors related to the Resort and is in substantial compliance with this Agreement during the 60-day period prior to requesting Transfer and during the period after the request was made but before the Transfer is effective;
- (v) the transferee's proposed Management Company, if different from the current Management Company, meets Franchisor's then-current standards for Management Companies and completes the Training Program and any other training required of Management Companies at the time;
- (vi) the transferee and its owners (if the Transfer is of this Agreement), or Franchisee and its Owners (if the Transfer is of an ownership interest that results in Control by the transferor in Franchisee or one of its Owners with Control), sign Franchisor's thencurrent form of franchise agreement and related documents for use with existing Camp Margaritaville Resorts (including guarantees and assumptions of obligations), any and all of the provisions of which may differ materially from any and all of those contained
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, if a franchisee desires to transfer their rights and obligations under the franchise agreement, they must notify Camp Margaritaville at least 30 days before the transfer. The franchisee must also ensure the transferee submits a copy of the current franchise application and the application fee.
Camp Margaritaville has 15 calendar days to determine whether to approve the transfer. However, this approval will not be unreasonably withheld if certain conditions are met. These conditions include ensuring the transfer is not to a competing brand, would not harm Camp Margaritaville, and that the transferee has the necessary business experience and financial resources.
Other conditions that must be met for a transfer to be approved include the franchisee being current on all payments to Camp Margaritaville and in substantial compliance with the agreement, the transferee's management company meeting Camp Margaritaville's standards, and the transferee signing Camp Margaritaville's current franchise agreement. Additionally, Camp Margaritaville may require the transferee to remodel the resort to meet current brand standards and update technology systems.