How long is the initial term for a Camp Margaritaville franchise agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 1.02 Initial Term. The term of this Agreement (the "Initial Term") will commence on the Effective Date and expire without notice on the date which is 20 years after the Opening Date, subject to its earlier termination as set forth in this Agreement.
Section 1.03 Renewal Term and Conditions. The Franchisee may, but is not obligated to, renew this Agreement for 1 additional period of 10 years (the "Renewal Term"; and together with the Initial Term, the "Term"), provided that Franchisee has satisfied each of the following conditions (all of which shall be referred to as the "Renewal Conditions");
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the initial term of the franchise agreement starts on the effective date and ends, without notice, 20 years after the opening date. This initial term is subject to earlier termination as outlined in the agreement.
After the initial 20-year term, Camp Margaritaville offers an option for renewal. The franchisee can renew the agreement for one additional term of 10 years, known as the Renewal Term. The initial term and renewal term are collectively referred to as the Term.
However, to qualify for this 10-year renewal, the franchisee must meet several conditions. These include providing written notice of their intent to renew between 12 and 18 months before the agreement's expiration, fulfilling all obligations under the agreement, satisfying all monetary obligations promptly, and ensuring the resort complies with the Camp Margaritaville System standards. The franchisee must also not have received more than two default notices during the initial term and must meet the franchisor's current standards for new franchisees, including creditworthiness and criminal history. Franchisees must also still own the site or have secured the right to continue operating at the site for the renewal term.