What rights does a Camp Margaritaville franchisee receive regarding the use of Camp Margaritaville Intellectual Property?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
penses), and compensation relating to these training programs and conventions. (Franchise Agreement, Section 3.01).
ITEM 12. TERRITORY
Location of your Resort
You will be granted the right and license to develop, operate, own, and manage your Resort, and possibly one or more FBR Units, Lodge, Dwellings and/or other Amenities (collectively "Selected Amenities") using the Camp Margaritaville Intellectual Property at the location that you select, and we accept. Your rights to use the Camp Margaritaville Intellectual Property are limited to the establishment, operation, and promotion of one Resort (and, if applicable, the Selected Amenities) at and from the site that you select, and we approve as specifically provided in your Franchise Agreement. You may not relocate your Resort without our approval. We would consider allowing you to relocate your Resort if it is damaged or destroyed by fire or other casualty or rendered inoperable due to condemnation or other zoning or legal impediments. Factors that will go into this decision include the cost of rebuilding in the current location, the location of other Margaritaville-branded hotels, resorts, and venues, and the appropriateness of any potential new location for Camp Margaritaville Resort.
Territory and Competition
You may operate your Resort only from the site that you select, and we accept. In special circumstances, when in our sole judgment, special considerations warrant, we may grant exclusive or protected areas where another Resort may not be franchised. These special circumstances shall only apply to a specific site and for the franchising of only a single Resort.
Unless such special circumstances exist, as determined by us, and we explicitly agree, you will not receive an exclusive territory. You may face competition from other franchisees from outlets that we own, or from other channels of distribution or competitive brands that we or our affiliates control.
In certain circumstances, we may agree to provide you with an "Area of Protection" within the Franchise Agreement. We typically define the Area of Protection as the immediate area surrounding the Resort, using geographic references such as streets, or miles surrounding the Resort (which may be defined as the radius surrounding the Resort or as driving miles, depending on the location). The Area of Protection's size will vary depending on the Resort's size and location and will be based on mutual agreement between the parties
as to what commercially reasonably constitutes a competitive area. Such judgments may vary in urban and suburban areas and other specialized locations such as travel destinations, airports, universities and stadiums.
If you are granted an Area of Protection, it may be limited to a period of time that is shorter than the term of the Franchise Agreement (e.g., 5 years from opening) (the "AOP Term"). Within the Area of Protection and during the AOP Term, we will not open or authorize any third party to open any Resort using the same or materially similar branding as your Resort.
Source: Item 12 — TERRITORY (FDD pages 55–57)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a franchisee is granted the right to use Camp Margaritaville Intellectual Property to develop, operate, own, and manage a Resort, including any FBR Units, Lodges, Dwellings and/or other Amenities at an approved location. These rights are specifically limited to the establishment, operation, and promotion of one Resort (and any approved Selected Amenities) at the approved site. The franchisee cannot relocate the Resort without Camp Margaritaville's approval, though relocation may be considered if the Resort is damaged or destroyed.
The franchisee's rights do not extend to branding and operating other facilities at or from the Resort using the Camp Margaritaville Intellectual Property unless expressly approved in advance by Camp Margaritaville. The franchisee may advertise and promote their Resort anywhere in the world, provided they comply with the operations manual and all applicable laws. However, franchisees cannot purchase or sell data lists or make third-party data sharing agreements without express consent from Camp Margaritaville.
Camp Margaritaville retains all rights not specifically granted to the franchisee, including the right to sell or license others to sell competitive or identical goods or services (whether under the Licensed Marks or under different trademarks) through alternative channels of distribution in any location, including to persons who may be the franchisee's customers. These alternative channels include internet sales, catalogs, department stores, and other Margaritaville facilities. The franchisee is not entitled to any compensation for sales through these alternative channels. The franchisee is also not permitted to sell Branded Merchandise from any location other than the retail store in the Resort if they are granted that right pursuant to an FBR Rider, and they may not sell through the Camp Margaritaville System Website or otherwise through the internet.