Regarding Vacation Rentals at Camp Margaritaville, what is the expectation for franchisee participation in the CRS (Central Reservation System)?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
CLAIMS RELATED TO SOURCED PRODUCTS IS LIMITED TO FRANCHISEE'S REMEDIES AGAINST THE GIVEN THIRD-PARTY SUPPLIER OR MANUFACTURER FOR ANY OF THE SOURCED PRODUCTS THAT THEY PROVIDE. THIS DISCLAIMER OF WARRANTIES DOES NOT AFFECT ANY CLAIMS FRANCHISEE MAY HAVE AGAINST THIRD PARTY MANUFACTURERS OR SUPPLIERS OF ANY SOURCED PRODUCTS**.
Section 4.08 Central Reservation System. Franchisor has implemented a central reservation system ("CRS") through which guests can make reservations at Camp Margaritaville Resorts. Franchisee shall adopt such CRS pursuant to the CRS Terms of Use incorporated by reference into the Technology Agreement attached hereto as Exhibit E, which includes payment by Franchisee of a one-time set-up fee and ongoing fees based on type of channel and number of pads/cabins, along with a required PMS subscription. Such fees may be increased from time-to-time based on increases in the underlying charges paid by Franchisor for the CRS. Franchisor reserves the right to modify or change, at its sole discretion, the CRS at any time upon 60 days' notice to Franchisee. Franchisee bears sole responsibility for inventory management, including rates, availability, and restrictions.
Section 4.09 Customer Relationship Management System. In connection with the CRS, Franchisee shall also participate in Franchisor's customer relationship management system ("CRM System") pursuant to CRM Terms of Use incorporated by reference into the Technology Agreement attached hereto as Exhibit E, which includes payment by Franchisee of a one-time set-up fee and a monthly subscription fee, based on number of pads/cabins. Such fees may be increased from time-to-time based on increases in the underlying charges paid by Franchisor for the CRM System. The CRM System allows Franchisor, Franchisee, and other properties to share valuable guest profile information that develops a single, measurable view of Resort guests. The CRM System includes a secure interface between the Resort's PMS and the CRS.
Section 4.10 Technology. Franchisor will from time to time during the Term of this Agreement negotiate on behalf of current and future Camp Margaritaville Resorts, agreements with specific providers of various technology systems, software and platforms necessary to run the Resort, including, but not limited to, a CMS, PMS, point of sale system ("POS System"), CRS, CRM, employee performance platform, high speed internet access service, financial reporting systems, music and video distribution systems, website marketing technology, electronic door lock systems, payment gateway, gift card solution, day pass reservation system, group sales referral program, and professional services for Franchisor's technology consultants, as set forth in Franchisor's Technology Standards, as Franchisor may periodically modify them. Franchisor may, at its option and in its sole discretion, require Franchisee to procure the required technology from specific providers or from a list of approved providers. In such event, Franchisor and Franchisee shall amend the Technology Agreement to incorporate such new required technology. Franchisee must obtain Franchisor's prior approval for installation of any technology platform or system not included in the System Standards.
Section 4.11 Gift Card Program. Franchisee must participate in the program for the sale and processing of gift cards at participating locations (the "Gift Card Program") that Franchisor has established. Concurrent with signing this Franchise Agreement, Franchisee must enter into a franchisee participation agreement with Givex, the third-party provider of transaction processing and settlement
services for the Gift Card Program (the "Gift Card Participation Agreement"), which is incorporated by reference into the Technology Agreement attached hereto as Exhibit E. Franchisee shall be responsible for the set-up costs associated with the Gift Card Program (currently $3,000-$10,000 based on property system setup and available amenities) and any other costs that may be imposed by any PMS/POS provider. When a gift card is redeemed at the Resort, Franchisee shall incur a charge of 2% of the amount tendered if the gift card was purchased at the Resort or at any other Margaritaville-branded physical location. Franchisee shall incur a charge of 5% of the amount tendered if the gift card was purchased from Franchisor's website (currently Margaritaville.com/gift-cards) or from a non-branded (third party) location, such as a pharmacy, grocery store or travel agent.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees are required to adopt the brand's Central Reservation System (CRS). This system allows guests to make reservations at Camp Margaritaville Resorts. Franchisees must adhere to the CRS Terms of Use, which are part of the Technology Agreement. This participation includes paying a one-time set-up fee and ongoing fees. These recurring fees are determined by the channel type and the number of pads/cabins at the location. The fees may be adjusted over time to reflect changes in the franchisor's underlying costs for the CRS.
Camp Margaritaville retains the right to modify or change the CRS at its discretion, providing franchisees with 60 days' notice of any such changes. However, franchisees are solely responsible for managing their inventory, including setting rates, availability, and restrictions. In addition to the CRS, franchisees must also participate in Camp Margaritaville's Customer Relationship Management system (CRM System), which is also governed by terms within the Technology Agreement. This participation involves paying a one-time set-up fee and a monthly subscription fee, which is based on the number of pads/cabins.
The CRM System enables Camp Margaritaville, its franchisees, and other properties within the system to share guest profile information, creating a unified view of resort guests. The CRM System includes a secure interface between the resort's Property Management System (PMS) and the CRS. Franchisees are also expected to refer requests for reservations or accommodations in areas where other Camp Margaritaville Resorts are located to those locations or to the CRS. Franchisees are obligated to direct guests and customers to Camp Margaritaville Resorts or other Margaritaville-branded lodging properties whenever possible, and they are prohibited from using the Resort or the Camp Margaritaville System to promote competing businesses or divert business away from the Resort.
Camp Margaritaville also requires franchisees to participate in Margaritaville Metasearch, a booking channel that facilitates bookings through third-party websites and search engines. This program is funded by a 15% commission collected by the franchisor on booked revenue, which is charged monthly on the Resort's CRS invoice. This commission is non-refundable, even if a reservation is canceled. The franchisor centrally manages the sites used for Metasearch, and all commissions are reinvested into the program based on demand and return on investment analysis. Franchisees must also use the day pass booking system provided by RealTime Reservations (RTR), the franchisor's required vendor, and pay a one-time onboarding cost of $300, along with a 12% commission on revenue produced by the day pass reservation system.