When does the Camp Margaritaville Merchant Agreement commence, according to the FDD?
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.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, the term of the agreement, referred to as the "Initial Term," commences on the Effective Date. The agreement then extends for a period of 20 years following the Opening Date. However, this term is subject to earlier termination as outlined within the agreement itself.
For a prospective Camp Margaritaville franchisee, this means the franchise agreement officially begins on a specific "Effective Date," likely the date the agreement is signed. The franchisee's rights and obligations under the agreement start from this date. The 20-year clock, however, only starts ticking once the Camp Margaritaville location actually opens for business.
It's important to note that the agreement can end before the 20-year term is up if certain conditions are met, such as a breach of contract. The franchisee also has the option to renew the agreement for an additional 10-year term, provided they meet specific renewal conditions outlined in the FDD.