Which section of the Camp Margaritaville Franchise Agreement outlines the franchisee's post-termination obligations?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in agreement | Disclosure document item | |
|---|---|---|---|
| a. Site selection and acquisition/ | Preliminary Statement | Item 11 | |
| lease | |||
| b. Pre-opening purchases/leases | Sections 2.03-2.09, 4.07 (FA) | Items 5, 7, and 8 | |
| c. Site development and other pre- | Article II (FA) ; Section 3.2 | Items 7 and 8 | |
| opening requirements | (FBR) | ||
| d. Initial and ongoing training | Article III (FA) | Item 8 | |
| e. Fees | Article VI (FA) ; Section 3.3 (FBR) ; Section 3.2 (AR) ; Section 3.2 (LR) Article 5 (DR) | Items 5, 6, and 7 | |
| f. Compliance with standards and policies/operating manual | Section 3.02, Article IV (FA) ; Article 4 (FBR) ; Article 4 (AR) ; Article 4 (LR) ; Article 4 (DR) | Items 8, 11, 15, and 16 | |
| g. Trademarks and proprietary information | Article VIII (FA) ; Article 3 (FBR); Article 3 (AR); Article 3 (LR); Article 3 (DR) | Items 13, and 14 | |
| h. Restrictions on products/services | Section 4.07 (FA); Section 3.2 | Item 8 | |
| offered | (FBR) | ||
| i. Warranty and customer service | Section 4.14 (FA) | Items 6, 8, 11, and 15 | |
| requirements | |||
| j. Territorial development and sales | Article II (FA) | Item 12 | |
| quotas | |||
| k. Ongoing product/service | Section 4.07 (FA); Section 3.2 | Item 8 | |
| purchases | (FBR) | ||
| l. Maintenance, appearance, and | Sections 1.03(f), 2.02-2.05, | Items 7, 8, and 11 | |
| remodeling requirements | 4.06, Article V (FA) | ||
| m. Insurance | Section 10.05 (FA); Section 6.5 (DR) | Item 8 | |
| n. Advertising | Sections 4.06(c)(xvii), 4.13- 4.14, Article V (FA); Section 4.1 (DR) | Items 6 and 11 | |
| o. Indemnification | Article X (FA); Section 6.7 (DR) | Item 6 | |
| Obligation | Section in agreement | Disclosure document item | |
| p. Owner’s | Sections 4.03-4.04 (FA) | Items 11 and 15 | |
| participation/management/ | |||
| staffing | |||
| q. Records and reports | Articles VI-VII (FA) | Item 11 | |
| r. Inspections and audits | Sections 4.16, 7.02 (FA) | Items 6 and 11 | |
| s. Transfer | Article XII (FA) | Item 17 | |
| t. Renewal | Sections 1.03-1.06 (FA) | Item 17 | |
| u. Post-termination obligations | Article XVI (FA) | Not applicable |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–55)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Article XVI of the Franchise Agreement covers the franchisee's obligations after the agreement is terminated. This is an important section for prospective franchisees to review carefully. Post-termination obligations typically include ceasing use of the Camp Margaritaville brand and intellectual property, returning confidential information, and potentially abiding by non-compete agreements.
Understanding these obligations is crucial because they dictate what a franchisee can and cannot do after the franchise relationship ends, whether due to expiration, termination by the franchisor, or termination by the franchisee. These obligations can significantly impact a former franchisee's ability to start a similar business or work in the same industry after leaving the Camp Margaritaville system.
While the FDD excerpt indicates the specific article addressing these obligations, it does not detail the exact nature of these obligations. A prospective franchisee should carefully review Article XVI of the Franchise Agreement to fully understand the scope and duration of these post-termination obligations. This includes seeking legal counsel to interpret the implications of these clauses.