How much notice must Camp Margaritaville give to terminate the agreement if it is not renewed?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
and obligation to use the Camp Margaritaville System during the Term (defined below in Section 1.03) to build or convert, and operate, the Resort at the Site under the Camp Margaritaville Intellectual Property in accordance with this Agreement's terms.
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");
(a) Franchisee provides Franchisor written notice of its election to renew the Franchise Agreement for the Renewal Term between 12 and 18 months prior to the expiration of this Agreement (the "Renewal Notice");
(b) Prior to giving the Renewal Notice and for the remainder of the Initial Term:
- (i) Franchisee has fully performed all of its obligations under this Agreement;
(ii) Franchisee has satisfied all monetary obligations in a timely and responsible manner to Franchisor, its affiliates, subsidiaries, and designees;
(iii) Franchisee, its Affiliates, or Guarantors are not in default of this Agreement or any other agreement with Franchisor or its Affiliates and the Resort is in full compliance with the Camp Margaritaville System, the System Standards, and Manual;
(iv) Franchisee is not in default of any material obligations or materially delinquent on any undisputed payments due under any agreement with any third party related to the Resort, including without limitation, vendors, suppliers, lessors, or mortgage holders; and
(v) Franchisee provides certification of compliance with all conditions precedent to Franchisor with Renewal Notice.
(c) Franchisee must not have received more than 2 Notices of Default from Franchisor during the Initial Term;
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchise agreement's initial term expires without notice. Specifically, Section 1.02 states that the agreement commences on the effective date and expires without notice 20 years after the opening date, unless terminated earlier as specified in the agreement.
Camp Margaritaville offers franchisees the option to renew the agreement for one additional 10-year period, provided they meet certain conditions. These Renewal Conditions include giving written notice between 12 and 18 months before the expiration of the initial term, fulfilling all obligations, satisfying monetary responsibilities, and complying with the Camp Margaritaville System standards.
Therefore, Camp Margaritaville is not obligated to provide any specific notice of termination at the end of the initial 20-year term, as the agreement expires automatically unless the franchisee actively seeks and qualifies for a renewal. This places the onus on the franchisee to initiate the renewal process within the stipulated timeframe and fulfill all requirements to continue operating under the Camp Margaritaville brand.