factual

What section of the Camp Margaritaville Franchise Agreement details the requirements for maintenance, appearance, and remodeling?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

aws. In connection with that compliance, Franchisee (on behalf of itself and its Owners) certifies, represents, and warrants as of the Effective Date that none of Franchisee's nor any Owner's property or interests is subject to being blocked under, and that Franchisee and its Owners otherwise are not in violation of, any of the Anti-Terrorism Laws.

Section 4.20 Renovations. Franchisee may be required to conduct renovation of guest rooms, restaurants, public facilities and other areas of the Resort, including the replacement of soft goods and case goods, periodically as required by the then-current System Standards, on a basis consistent with other Camp Margaritaville Resorts of similar size and amenities as the Resort, provided that Franchisee shall not be required at any time during the Term to: (i) update any soft goods until the later of five (5) years following the installation of such soft goods or the end of such item's useful life; (ii) update any case goods until the later of ten (10) years following the installation of such case goods or the end of such items useful life; or (iii) make any physical or structural changes or additions to any part of the Resort (including the movement of any load-bearing walls or modifications to the overall property footprint). The obligations of this Section 4.19 shall be in addition to, and shall not be construed to limit, Franchisee's obligations to perform a Remodel of the Resort or to perform repair and maintenance of the Resort, as set forth elsewhere in this Agreement.

Section 4.21 Operational Information. Beginning on the Opening Date, within 10 days after the end of each calendar month of the Term, Franchisee shall report to Franchisor all Operational Information for the immediately preceding month, year to date, and/or year (as applicable). To help facilitate such reporting, Franchisee shall participate in a financial reporting system required by Franchisor ("Reporting System") pursuant to terms negotiated by Franchisor for Camp Margaritaville Resorts. Franchisee shall pay a onetime set-up fee (to include amounts due to both the Reporting System provider and Franchisor's installation consultant), as well as annual fees that include a fixed fee and a fee per user of the Reporting System. Such fees may be increased from time-to-time by the provider of the Reporting System. Operational Information shall be transmitted to Franchisor through the Reporting System and/or delivered directly to Franchisor, at Franchisor's option.

**ARTICLE V.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 45–46)

What This Means (2025 FDD)

According to the 2025 Camp Margaritaville Franchise Disclosure Document, Section 4.20, titled "Renovations," outlines the franchisee's responsibilities for conducting renovations to guest rooms, restaurants, public facilities, and other areas of the resort. These renovations include replacing soft goods and case goods periodically, as required by the then-current System Standards. These renovations should be consistent with other Camp Margaritaville Resorts of similar size and amenities. However, franchisees are not required to update soft goods until the later of five years following their installation or the end of their useful life, nor are they required to update case goods until the later of ten years following their installation or the end of their useful life.

The franchise agreement also specifies that franchisees are not required to make any physical or structural changes or additions to any part of the Resort, including moving load-bearing walls or modifying the overall property footprint. It's important to note that these renovation obligations are in addition to the franchisee's obligations to perform a Remodel of the Resort or to perform repair and maintenance of the Resort, as detailed elsewhere in the agreement.

Furthermore, the FDD mentions that franchisees may be required to upgrade or renovate the Resort to comply with then-current building décor, appearance, trade dress standards, and other aspects of the Camp Margaritaville System. These upgrades or renovations may involve altering the Resort's appearance and/or replacing a material portion of improvements and/or FF&E. Franchisees must implement these upgrades and renovations within the time period requested by Camp Margaritaville, regardless of their cost or the point during the Franchise Agreement's term when they are required.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.