Which section of the Camp Margaritaville franchise agreement addresses the topic of 'Non-Renewal'?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that Franchisor has not revoked its Renewal Consent, the terms of this Agreement will govern the Franchisee's operation of the Resort until such time as Franchisee signs the Successor Franchise Agreement or the Franchisor revokes it Renewal Consent.
Section 1.05 Non-Renewal. Subject to Applicable Law, if Franchisee fails to satisfy any of the Renewal Conditions or to strictly comply with obligations under Section 1.04 prior to the end of the Initial Term and/or Franchisee's execution of the Successor Franchise Agreement, then: (a) Franchisee's failure will be deemed an election by Franchisee not to renew; and (b) if Franchisor has issued a Renewal Consent, such Renewal Consent will be deemed automatically rescinded without further notice or action by Franchisor.
Section 1.06 Effect of Non-Renewal on Expiration. Non-renewal of this Agreement will result in the Agreement ending on the expiration date and thereby end Franchisee's franchise rights to operate the Resort. Upon such expiration, Franchisee must meet all obligations applicable upon termination or expiration as set forth in Article XVI herein. Franchisee agrees that this Agreement does not grant Franchisee any automatic right to the Renewal Term and that Franchisor is not obligated to provide Renewal Consent.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Section 1.05 addresses the topic of 'Non-Renewal'. This section outlines the conditions under which a franchisee's failure to meet renewal requirements will be considered an election not to renew the franchise agreement. It also states that any prior Renewal Consent issued by Camp Margaritaville will be automatically rescinded without further notice if the franchisee fails to meet these conditions.
Section 1.06 further clarifies the 'Effect of Non-Renewal on Expiration,' stating that non-renewal results in the agreement ending on the expiration date, thus terminating the franchisee's rights to operate the Camp Margaritaville resort. Upon expiration, the franchisee must fulfill all obligations applicable to termination or expiration, as detailed in Article XVI of the franchise agreement.
Camp Margaritaville emphasizes that the franchise agreement does not grant any automatic right to a Renewal Term, and the franchisor is not obligated to provide Renewal Consent. This means that franchisees must proactively meet all specified conditions and obtain approval from Camp Margaritaville to secure a renewal term, highlighting the importance of adhering to the franchise agreement terms and maintaining a strong operational and financial standing.