What is the purpose of the vacation dwellings developed by the Camp Margaritaville franchisee?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1 License. Franchisor and Franchisee acknowledge that in executing this Rider and modifying certain of the defined terms in the Agreement and adding additional defined terms to the Agreement, that during the Term, subject to the terms of the Agreement, including without limitation, Article V thereof, Franchisor is granting, and Franchisee is accepting, a limited non-exclusive license develop, construct, and operate for rental and sale Dwellings and Vacation Rentals under the "Camp Margaritaville" umbrella.
- A. Following the execution of a purchase and sale agreement for a Dwelling and in no event prior thereto (excluding Franchisee as a Dwelling Owner), Dwelling Owners shall be afforded the opportunity to participate in the Rental Program. Dwelling Owners that, in their sole discretion, decide to participate in the Rental Program shall participate in the rental stream generated by the Website.
- B. Dwelling Owners desiring to participate in the Rental Program shall enter into a rental management agreement with Franchisee in a form approved by Franchisor (such approval not to be unreasonably withheld, conditioned or delayed) (each, a "Rental Management Agreement"). During the Term, the form of Rental Management Agreement approved by the Franchisor, shall not be amended, or any other Rental Management Agreement adopted, that adversely affects or detracts from the overall image of the Camp Margaritaville Intellectual Property and the standards of quality associated therewith or the operation of the Project.
- D. With respect to any Dwellings whose Dwelling Owners decide not to participate in the Rental Program, Franchisee (or its Affiliates) shall not manage, rent, and otherwise operate such Dwelling. Instead, nonparticipating Dwelling Owners shall have the right, pursuant to a separate rental management agreement, using a third-party rental manager that has met commercially reasonable qualifications similar to the rental manager controlled by Franchisee. Such independent rental management program shall not represent or otherwise indicate that such non-participating Dwelling is branded as or otherwise affiliated with the Margaritaville brand.
- E. A Dwelling Owner not participating in the Rental Program may use thirdparty rental agents and booking services including websites and "OTAs" (Online Travel Agencies) to market the rental of their Dwellings but may not use Camp Margaritaville Intellectual Property in connection therewith and provided that such third-party rental agents are subject to the standards
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville FDD, franchisees are granted a limited non-exclusive license to develop, construct, and operate dwellings and vacation rentals for rental and sale under the Camp Margaritaville brand. This is outlined in the FBR Rider to the franchise agreement, indicating an expansion of the standard Camp Margaritaville resort model to include residential-style properties.
Dwelling Owners have the option to participate in a Rental Program, contributing to a rental stream generated by the Camp Margaritaville website. If they choose to participate, they must enter into a rental management agreement with the franchisee, using a form approved by Camp Margaritaville. This agreement ensures that the dwellings align with the brand's quality standards.
However, Dwelling Owners are not obligated to participate in the Rental Program. Those who opt out can manage their properties independently or through a third-party rental manager, but they cannot use Camp Margaritaville Intellectual Property to market their rentals unless the third-party rental agents adhere to the standards and requirements approved by Camp Margaritaville.