What obligations does a Camp Margaritaville franchisee have to cooperate with Margaritaville in performing services under the Hospitality Group Lead Referral Services Agreement?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
-
- Margaritaville Services. Margaritaville shall provide to Company the promotion and marketing services described generally in Schedule 1 (the "Services") and/or set out more specifically in one or more statements of work (each, a "Statement of Work" or "SOW"). In the event of any inconsistency between an SOW and this Agreement, the terms of this Agreement shall control.
-
- Company Obligations and Responsibilities.
- 2.1 Company shall cooperate with Margaritaville in its performance of the Services and provide access to Company's data, premises, employees, contractors, and equipment as required to enable Margaritaville to provide the Services.
- 2.2 Company shall take all steps commercially reasonably necessary, including obtaining any required licenses or consents, to prevent Company-caused delays in Margaritaville's provision of the Services.
2.3 Company shall assign its most senior sales leader as the only person permitted to upload referral leads into the Platform (as defined a Statement of Work). Such person and/or Company's general manager shall approve all Commissions owed under a Statement of Work.
2.4 Company understands that the Services provided hereunder are not exclusive to Company. Company agrees that the Property will appear on advertisements and in other promotional materials in conjunction with other Margaritaville-branded properties.
-
- Fees and Expenses; Payment Obligations. In consideration of the provision of the Services and the rights granted to Company under this Agreement, Company shall pay Margaritaville the fees agreed to in each SOW (the "Fees"). Margaritaville shall be solely responsible for the payment of all applicable taxes from the Fees retained by Margaritaville hereunder (after allocations to referrer and platform).
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee has specific obligations to cooperate with Margaritaville in performing services related to promotion and marketing. The franchisee, referred to as "Company" in the agreement, must cooperate with Margaritaville in its performance of the Services and provide access to the Company's data, premises, employees, contractors, and equipment as required to enable Margaritaville to provide the Services. This means the franchisee needs to be prepared to share necessary resources and information to facilitate Margaritaville's marketing efforts.
Furthermore, the franchisee must take all steps commercially reasonably necessary, including obtaining any required licenses or consents, to prevent Company-caused delays in Margaritaville's provision of the Services. This highlights the franchisee's responsibility to ensure that their actions or lack thereof do not hinder Margaritaville's ability to deliver the agreed-upon services. This could involve securing permits or approvals needed for marketing activities in a timely manner.
Additionally, the franchisee must assign its most senior sales leader as the only person permitted to upload referral leads into the Platform. This designated person, along with the Company's general manager, is responsible for approving all Commissions owed under a Statement of Work. This indicates a structured process for managing and approving referral leads and associated commissions, ensuring accountability and control. The franchisee also acknowledges that the services provided are not exclusive and that the Property will appear on advertisements and in other promotional materials in conjunction with other Margaritaville-branded properties.