What are Camp Margaritaville's obligations regarding compliance with U.S. and foreign laws?

Resorts and pay the then-current fee charged by each applicable vendor for such program. In addition, by its signature to this Agreement, Franchisee consents to its enrollment as a member of the American Hotel and Lodging Association (AHLA), at Franchisee's expense. Membership in the AHLA is optional, and Franchisee may opt out if Franchisee does not wish to participate.

Section 4.15 Menus. The menus offered through the Food and Beverage Service shall be approved by Franchisor on a commercially reasonable basis, based on brand consistency and the specific kitchen facilities. Franchisee shall be responsible for ensuring that menus comply with all Applicable Law.

Section 4.16 Quality Assurance.

• (a) Quality Assurance Audits.

  • (i) Right to Inspect. During normal business hours and without any prior notice, Franchisor, its representatives, or Affiliates may:
    • (1) inspect all public and non-public areas of the Resort at any time except for occupied Overnight Accommodations;
    • (2) be served food and drink during regular hours of service, which, when consumed in public areas of any Food and Beverage Service, shall be free of charge;
    • (3) interview management and staff, provided such interviews shall not interfere with the performance of the duties of the management and staff; and
    • (4) inspect records (including, without limitation, letters or notes regarding customer complaints), to ensure compliance with System Standards.

• (b) The foregoing items (1)-(4) shall be referred to as the "Quality Assurance Audit".

  • (i) Standards for Passage. The score required to pass any Quality Assurance Audit shall be set from time to time by Franchisor and communicated in the Manual.
  • (ii) Timing. Franchisor may conduct such audits as frequently as Franchisor determines in its sole discretion.
  • (iii) Costs. Franchisee shall be responsible for the costs of lodging, food and beverage, and other related living expenses for inspectors during Quality Assurance Audits. Except such costs, Quality Assurance Audits conducted in the ordinary course of business shall be free of charge. In the event, however, that the Resort fails any Quality Assurance Audit, then Franchisee shall be charged a $5,000 fee for each additional Quality Assurance Audit, until such time that the Resort becomes compliant. This fee may be changed or increased by the Franchisor, in its sole discretion, during the Term and Franchisee shall be notified in writing of such increase.

• (c) Other Quality Assurance Measures. Franchisor may institute other quality control measures as it deems appropriate from time to time, as premised upon commercially reasonable criteria. Such measures may include, but are not limited to:

  • (i) Guest Comment Cards. Franchisor may initiate, in which event Franchisee shall facilitate, at Franchisee's expense, participation in a guest comment card program to measure Resort guest satisfaction.
  • (ii) Staff Surveys. Franchisor may initiate, in which event Franchisee shall facilitate, comprehensive staff surveys utilizing the criteria consistent with the Camp Margaritaville System, to measure staff satisfaction.

• (iii) Secret Shopper Report. Franchisor will conduct comprehensive system-wide secret shopper reports that must achieve a minimum score as described in the Manual.

• (iv) Online Reputation. Franchisee shall be required to maintain minimum online reputation scores to be set by Franchisor in its sole discretion.

• (v) Food Safety and Sanitation Audits. In addition to or as a part of a Quality Assurance Audit, Franchisee may also be required, on a quarterly basis at Franchisee's expense, to participate in food safety and sanitation audits conducted by Franchisor or its designated agent.

The score required to pass each of the quality measures set forth above shall be set from time to time by Franchisor and communicated in writing as part of the System Standards.

Source: Item 23 — RECEIPTS (FDD pages 72–406)