What are the requirements for the cyber security insurance that a Camp Margaritaville franchisee must obtain?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall obtain cyber security insurance in the amounts required by Franchisor and provide a Certificate of Insurance from the insurer to Franchisor, naming Franchisor as an additional insured of Franchisee.
Further, Franchisee shall follow industry accepted practices surrounding the patching of system vulnerabilities.
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 obtain cyber security insurance. The specific amounts of coverage required are determined by Camp Margaritaville.
To ensure compliance, franchisees must provide a Certificate of Insurance to Camp Margaritaville from their insurer. This certificate must name Camp Margaritaville as an additional insured party under the franchisee's cyber security insurance policy.
In addition to obtaining cyber security insurance, Camp Margaritaville franchisees are also expected to follow industry-accepted practices for patching system vulnerabilities. This proactive approach helps to minimize the risk of security incidents and protect sensitive data.