factual

What section of the Camp Margaritaville Franchise Agreement outlines the franchisee's obligations regarding maintenance, appearance, and remodeling requirements?

Camp_Margaritaville Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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 and other sections within the agreement detail the franchisee's obligations for maintenance, appearance, and remodeling. Section 4.20 specifically addresses renovations, stating that Camp Margaritaville franchisees may be required to conduct renovations to guest rooms, restaurants, public facilities, and other areas of the resort. These renovations, including the replacement of soft goods and case goods, must be done periodically as required by the then-current System Standards, consistent with other Camp Margaritaville Resorts of similar size and amenities.

The agreement sets some limits to the renovation requirements. Franchisees are not required to update soft goods until the later of five years following installation or the end of the item's useful life, and case goods updates are not required until the later of ten years following installation or the end of their useful life. Furthermore, franchisees are not required to make physical or structural changes or additions to any part of the Resort, including moving load-bearing walls or modifying the property footprint.

The document clarifies that the renovation obligations outlined in Section 4.20 are in addition to, and do not limit, the franchisee's obligations to perform a Remodel of the Resort or to perform repair and maintenance of the Resort, as set forth elsewhere in the Agreement. This means franchisees must comply with all separate requirements for remodeling and general upkeep as specified in other parts of the franchise agreement.

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.