What section of the Camp Margaritaville franchise agreement discusses the procedure for renewal?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ion 1.02 Initial Term**. The term of this Agreement (the "Initial Term") will commence on the Effective Date and expire without notice on the date which is 20 years after the Opening Date, subject to its earlier termination as set forth in this Agreement.
Section 1.03 Renewal Term and Conditions. The Franchisee may, but is not obligated to, renew this Agreement for 1 additional period of 10 years (the "Renewal Term"; and together with the Initial Term, the "Term"), provided that Franchisee has satisfied each of the following conditions (all of which shall be referred to as the "Renewal Conditions");
(a) Franchisee provides Franchisor written notice of its election to renew the Franchise Agreement for the Renewal Term between 12 and 18 months prior to the expiration of this Agreement (the "Renewal Notice");
(b) Prior to giving the Renewal Notice and for the remainder of the Initial Term:
- (i) Franchisee has fully performed all of its obligations under this Agreement;
(ii) Franchisee has satisfied all monetary obligations in a timely and responsible manner to Franchisor, its affiliates, subsidiaries, and designees;
(iii) Franchisee, its Affiliates, or Guarantors are not in default of this Agreement or any other agreement with Franchisor or its Affiliates and the Resort is in full compliance with the Camp Margaritaville System, the System Standards, and Manual;
(iv) Franchisee is not in default of any material obligations or materially delinquent on any undisputed payments due under any agreement with any third party related to the Resort, including without limitation, vendors, suppliers, lessors, or mortgage holders; and
(v) Franchisee provides certification of compliance with all conditions precedent to Franchisor with Renewal Notice.
(c) Franchisee must not have received more than 2 Notices of Default from Franchisor during the Initial Term;
(d) Franchisee meets Franchisor's then-current standards for accepting new franchisees, including without limitation, credit worthiness, access to capital, and criminal history;
(e) Franchisee is still the owner of the Site or to the extent the Site is subject to a lease has secured the right to continue operating at the Site for the Renewal Term and provided to Franchisor a copy of any related leasehold documents;
(f) If required by Franchisor, Franchisee remodels the Resort to Franchisor's then-current brand image and technological standards for Camp Margaritaville Resorts within 6 months after the expiration of the Initial Term, which may be set forth in a new property improvement plan and/or technology improvement plan. "Remodel" shall mean to refurbish and remodel the Resort, at Franchisee's expense, to conform to the then-current standards for the Camp Margaritaville System, design and decor, fixtures, furnishings, equipment, technology, trade dress, color scheme and presentation of Margaritaville Intellectual Property consistent with the design concepts then in effect for new RV resorts using the Camp Margaritaville System, including, without limitation, such structural changes, remodeling, redecoration and other modifications to existing improvements as Franchisor deems necessary in its commercially reasonable judgment. Maintenance and repair are not, on their own, a Remodel, nor is Franchisee's acquisition of new or additional equipment or signage due to new or improved System Standards;
(g) Franchisee has attended all mandatory annual conventions or other mandatory meetings during the Initial Term, unless attendance was excused by Franchisor;
(h) Franchisee signs Franchisor's then-current form of franchise agreement ("Successor Franchise Agreement") which may be materially different from this Agreement (including without limitation higher and/or different fees), except that Franchisee will not be required to pay another a
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Section 1.03 outlines the renewal terms and conditions. A franchisee has the option to renew the agreement for one additional term of 10 years, provided they meet specific conditions. This section is crucial for franchisees as it details the requirements for extending their franchise beyond the initial term.
To be eligible for renewal, the Camp Margaritaville franchisee must provide written notice to the franchisor between 12 and 18 months before the expiration of the initial agreement. Throughout the initial term and leading up to the renewal, the franchisee must have fully met all obligations under the agreement, including timely satisfaction of all monetary obligations to the franchisor, its affiliates, subsidiaries, and designees. Furthermore, neither the franchisee, its affiliates, nor guarantors should be in default of the agreement or any other agreement with the franchisor or its affiliates, and the resort must be in full compliance with the Camp Margaritaville system standards and manual.
Additional conditions for renewal include not having received more than two Notices of Default from Camp Margaritaville during the initial term and meeting the franchisor's current standards for new franchisees, which encompass creditworthiness, access to capital, and a clean criminal history. The franchisee must also maintain ownership of the site or secure the right to continue operating at the site for the renewal term, providing the franchisor with copies of any related leasehold documents. A renewal fee of $50,000 is required. The franchisee must also sign the franchisor's then-current form of franchise agreement, which may have materially different terms, including higher or different fees, although another application fee to complete the Training Program will not be required.
Camp Margaritaville may also require the franchisee to remodel the resort to meet the brand's current image and technological standards within six months after the initial term's expiration, potentially outlined in a new property or technology improvement plan. Attendance at all mandatory annual conventions or meetings during the initial term is also a prerequisite, unless excused by the franchisor. These conditions ensure that franchisees remain compliant and aligned with the brand's standards, protecting the integrity and consistency of the Camp Margaritaville system.