What is the minimum amount of professional liability insurance per occurrence that a Camp Margaritaville franchisee must procure?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 10.05 Insurance.
- (a) Insurance Required. During the Term, Franchisee will procure and maintain the types and amounts of insurance coverage with the deductibles, limits, carrier ratings, and policy obligations set forth in the System Standards, including any additional insurance as may be required based on specific amenities offered. Such insurance requirements may include: property insurance including business interruption, earthquake, flood, terrorism and windstorm; workers' compensation; commercial general liability; liquor liability; business auto liability; umbrella or excess liability; fidelity coverage; employment practices liability; cyber liability; and such other insurance customarily carried on lodging properties similar to the Resort. Franchisor may require Franchisee to obtain additional types of insurance or increase the amount of coverage. All insurance will by endorsement specifically:
- (i) name as unrestricted additional insureds Franchisor, any Affiliate designated by Franchisor and their employees and agents (except for workers' compensation and fidelity insurance);
- (ii) provide that the policies will be primary and that any insurance carried by any additional insured will be excess and non-contributory;
- (iii) contain a waiver of subrogation in favor of Franchisor and any Affiliate of Franchisor; and
- (iv) provide that the policies will not be canceled, non-renewed or reduced without at least 30 days' prior notice to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the specific minimum amount of professional liability insurance coverage per occurrence that a franchisee must secure is not detailed in the provided excerpts. However, Section 10.05(a) outlines the general insurance requirements. It states that during the term of the agreement, franchisees must procure and maintain the types and amounts of insurance coverage detailed in the System Standards. These standards include deductibles, limits, carrier ratings, and policy obligations. The required insurance may include property insurance, workers' compensation, commercial general liability, liquor liability, business auto liability, umbrella or excess liability, fidelity coverage, employment practices liability, and cyber liability.
Camp Margaritaville may also require franchisees to obtain additional types of insurance or increase the amount of coverage as deemed necessary. All insurance policies must name Camp Margaritaville and any designated affiliates as additional insureds, ensure the policies are primary, include a waiver of subrogation in favor of the franchisor and its affiliates, and provide at least 30 days' prior notice to the franchisor before any cancellation, non-renewal, or reduction in coverage.
Given the absence of specific figures in the provided excerpts, prospective Camp Margaritaville franchisees should consult the System Standards manual and directly ask the franchisor for detailed information on the required minimum amounts for each type of insurance, including professional liability insurance. Understanding these requirements is crucial for assessing the overall investment and operational costs associated with the franchise.