What is Camp Margaritaville's primary service obligation to licensees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 2.10 Franchisor's Pre-Opening Obligations. Franchisor agrees to use commercially reasonable efforts in connection with its review and approval of Design Plans and its approval to open the Resort under the Camp Margaritaville Intellectual Property, including by making a reasonable number of visits to the Site and providing reasonable guidance and advice relating to the Resort's development or conversion. Franchisor's review and approval of Design Plans, provision of construction, design, architectural, planning and/or related services in connection with the Resort (whether before or after signing this Agreement), and its approval to open the Resort under the Camp Margaritaville Intellectual Property are intended only to determine compliance with Franchisor's pre-opening requirements. However, Franchisor's determination that Franchisee has met all Franchisor's pre-opening requirements will not constitute a representation or warranty, express or implied, that the Resort complies with Applicable Law or a waiver of Franchisee's non-compliance, or of Franchisor's right to demand full compliance, with Franchisor's pre-opening requirements or any other provision of this Agreement. Franchisor will have no liability to Franchisee for the Resort's construction or renovation. It is Franchisee's responsibility to make sure that the Resort complies with the System Standards, Applicable Law, and permit requirements.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the franchisor's primary service obligation involves reviewing and approving design plans and granting approval to open the Resort under the Camp Margaritaville Intellectual Property. This includes making a reasonable number of site visits and providing guidance during the resort's development or conversion.
Camp Margaritaville's review and approval processes are intended to ensure compliance with the franchisor's pre-opening requirements. However, the FDD specifies that the franchisor's approval does not constitute a warranty that the resort complies with all applicable laws. It is the franchisee's responsibility to ensure the resort meets System Standards, legal requirements, and permit regulations.
While Camp Margaritaville offers support during the pre-opening phase, the franchisee bears the ultimate responsibility for the resort's construction, renovation, and overall compliance. This division of responsibilities is typical in franchising, where the franchisor provides brand standards and support, but the franchisee manages the day-to-day operations and ensures legal compliance.