How much notice must a Camp Margaritaville franchisee provide to the franchisor before a transfer of the franchise?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
an id="page-124-2">Section 12.01 Assignment by Franchisor. Franchisor may assign its rights or delegate its obligations under this Agreement to: (a) any Affiliate; (b) any secured lender; or (c) any Person that can otherwise comply alone or in combination with Franchisor and its Affiliates with all requirements as set forth in this Agreement.
Section 12.02 Assignment or Transfer by Franchisee; Change of Control.
- (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.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee must provide notice to the franchisor of an anticipated transfer of the franchise. This notice must be provided as soon as reasonably practicable, but no less than 30 days before the transfer is scheduled to occur.
Along with the notice, the franchisee must ensure that the prospective transferee submits a copy of the then-current franchise application and the associated application fee. Camp Margaritaville will then determine whether to approve the transfer within 15 calendar days. Approval will not be unreasonably withheld if certain conditions are met, such as the transfer not being to a competing brand and not materially harming the franchisor.
There is an exception to this general rule. A Camp Margaritaville franchisee may transfer their franchise to a corporation or limited liability company formed solely for the convenience of ownership, provided that the franchisee owns and controls 100% of the ownership interests in the new entity. In this specific case, the franchisee must still notify Camp Margaritaville at least 30 days prior to the transfer.