What is the 'Opening Deadline' referring to in the Camp Margaritaville Franchise Disclosure Document?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
itects, engineers, and contractors hired by Franchisee shall be the sole responsibility of the Franchisee. Additionally, Franchisee shall be responsible for all preopening expenses associated with opening the Resort, including without limitation, food/beverage inventory, POS Systems, practice meals and the like.
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 imm
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the 'Opening Deadline' refers to the timeframe within which a franchisee must open and begin operating their resort. For new construction resorts, this deadline is 24 months after the Effective Date of the franchise agreement. For adaptive reuse projects, the deadline is 18 months after the Effective Date, unless a different timeframe is specified in the Property Improvement Plan (PIP).
Camp Margaritaville allows for the possibility of extending the Opening Deadline. To request an extension, a franchisee must submit a written request along with a $10,000 extension fee to Camp Margaritaville before the original deadline. If Camp Margaritaville approves the extension, they will set a new Opening Deadline. The extension fee is non-refundable, and Camp Margaritaville may require the franchisee to update previously approved Design Plans or the PIP to align with the current standards of the Camp Margaritaville system. If the extension is denied, the fee will be refunded, and the original Opening Deadline remains in effect.
Camp Margaritaville emphasizes that all rights granted to the franchisee are contingent upon opening the resort as a Margaritaville-branded property by the Opening Deadline. Failure to meet this deadline can result in the termination of the franchise agreement at Camp Margaritaville's discretion, without any obligation to refund fees or expenses paid by the franchisee. However, a failure to open by the deadline will not be considered a breach of contract if it is caused by Camp Margaritaville, its affiliates, or a Force Majeure Event.