What is the 'Opening Date' referring to in the Camp Margaritaville Franchise Disclosure Document?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
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 2.08 Opening Deadline and Extension.
- (a) Franchisee may not open or begin operating the Resort until Franchisee has satisfied Franchisor's pre-opening conditions as set forth in Section 2.09 hereof. Franchisee must open and begin operating the Resort under the Camp Margaritaville System and the Camp Margaritaville Intellectual Property (a) within 24 months after the Effective Date if the Resort is a new construction, or (b) within 18 months after the Effective Date (unless otherwise provided in the PIP, if applicable pursuant to Section 2.04) if the Resort is an adaptive reuse, as applicable (the "Opening Deadline").
- (b) If Franchisee wants an extension of the Opening Deadline, Franchisee must submit a written request and a $10,000 extension fee to Franchisor before the Opening Deadline. If Franchisor approves the extension, Franchisor will set a new Opening Deadline, the extension fee will be non-refundable, and Franchisor may, at its option, require Franchisee to modify any previously-approved Design Plans or PIP (if applicable pursuant to Section 2.04) to comply with the then-current design, equipment, and other aspects of the Camp Margaritaville System. If Franchisor denies the extension, Franchisor will refund the extension fee and the Opening Deadline will remain unchanged.
- (c) All rights granted by Franchisor to the Franchisee under this Agreement are subject to the condition precedent that Franchisee shall render the Resort a Margaritaville-branded property as required and open the Resort to the public pursuant to this Agreement and the System Standards on or before the Opening Deadline. Notwithstanding the foregoing, it shall not be a breach of this Agreement if Franchisee's failure to open the Resort to the public as a Margaritaville-branded property by the Opening Deadline is caused by Franchisor or its Affiliates, or a Force Majeure Event.
- (d) If the Resort does not open by the Opening Deadline (as may be extended pursuant to Section 2.08(b)), then Franchisor, at its sole option, may terminate this Agreement immediately without notice to Franchisee. If terminated by Franchisor pursuant to the foregoing, this Agreement shall be null and void and Franchisor will not be required to refund or reimburse any fees or expenses paid by Franchisee in accordance with or as a result of this Agreement and Section 16.05(b) shall apply.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the 'Opening Date' refers to the date the franchisee must open and begin operating their resort under the Camp Margaritaville System and using Camp Margaritaville Intellectual Property. This date is crucial because it marks the start of the franchise agreement's initial term, which lasts for 20 years from the Opening Date.
The document specifies that the franchisee must meet certain deadlines for opening the resort. For new construction, the resort must open within 24 months of the Effective Date of the agreement. For adaptive reuse projects, the opening deadline is within 18 months of the Effective Date, unless a different timeline is provided in the Property Improvement Plan (PIP).
Camp Margaritaville franchisees can request an extension of the Opening Deadline, but this requires a written request and a $10,000 extension fee. If the extension is approved, Camp Margaritaville will set a new deadline, and the fee is non-refundable. If the extension is denied, the original deadline remains in place, and the extension fee is refunded. Failure to open by the Opening Deadline, including any approved extensions, gives Camp Margaritaville the option to terminate the agreement, without any obligation to refund fees or expenses paid by the franchisee.