Is refusing an inspection by the Franchisor an Event of Default for a Camp Margaritaville franchise?

According to Camp Margaritaville's 2025 Franchise Disclosure Document, refusing to permit an inspection by the franchisor is indeed an Event of Default. Specifically, if a franchisee refuses to allow Camp Margaritaville to inspect the Resort, or its books or accounts upon demand, it constitutes a breach of the franchise agreement.

This means that Camp Margaritaville has the right to inspect the physical premises of the resort, as well as all financial records, to ensure compliance with the System Standards. This right is critical for the franchisor to maintain brand consistency and quality across all franchise locations. The inspection can occur "upon demand," meaning without prior notice.

For a prospective franchisee, this underscores the importance of maintaining accurate records and adhering to Camp Margaritaville's standards. Failure to comply with inspection requests can lead to serious consequences, including potential termination of the franchise agreement and other remedies available to the franchisor.