What are the referral obligations of a Camp Margaritaville franchisee regarding reservations or accommodations at other Camp Margaritaville locations?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 4.17 Cross-Promotion.
If Franchisee receives a request at the Resort for reservations or accommodations in any area where a Camp Margaritaville Resort is located, Franchisee will promptly refer such request to such location or to the CRS.
Franchisee must refer guests and customers, wherever reasonably possible, only to Camp Margaritaville Resorts or other Margaritaville-branded lodging properties, not use the Resort or the Camp Margaritaville System to promote a competing business or other lodging facility, and not divert business from the Resort to a competing business.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding referrals for reservations or accommodations at other Camp Margaritaville locations. If a franchisee receives a request at their Resort for reservations or accommodations in an area where another Camp Margaritaville Resort is located, the franchisee is required to promptly refer the request to that specific location or to the Camp Margaritaville central reservation system (CRS). This ensures that potential customers are directed to the appropriate Camp Margaritaville location to fulfill their needs.
Furthermore, Camp Margaritaville franchisees are obligated to prioritize referrals to other Camp Margaritaville Resorts or Margaritaville-branded lodging properties whenever reasonably possible. This means franchisees should actively promote and direct guests towards the Camp Margaritaville system rather than suggesting alternative, competing businesses. This requirement aims to maintain brand consistency and ensure that customers remain within the Camp Margaritaville network, fostering loyalty and maximizing revenue for the entire franchise system.
Conversely, franchisees are explicitly prohibited from using their Resort or the Camp Margaritaville system to promote competing businesses or other lodging facilities. They must not divert business away from their Camp Margaritaville Resort to competitors. This restriction is in place to protect the Camp Margaritaville brand and prevent franchisees from undermining the success of the system by promoting rival establishments. These referral obligations are designed to strengthen the Camp Margaritaville brand and ensure a cohesive network of resorts.