What section of the Camp Margaritaville franchise agreement outlines the franchisor's pre-opening obligations?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 2.10 Franchisor's Pre-Opening Obligations. Franchisor agrees to use commercially reasonable efforts in connection with its review and approval of Design Plans and its approval to open the Resort under the Camp Margaritaville Intellectual Property, including by making a reasonable number of visits to the Site and providing reasonable guidance and advice relating to the Resort's development or conversion. Franchisor's review and approval of Design Plans, provision of construction, design, architectural, planning and/or related services in connection with the Resort (whether before or after signing this Agreement), and its approval to open the Resort under the Camp Margaritaville Intellectual Property are intended only to determine compliance with Franchisor's pre-opening requirements. However, Franchisor's determination that Franchisee has met all Franchisor's pre-opening requirements will not constitute a representation or warranty, express or implied, that the Resort complies with Applicable Law or a waiver of Franchisee's non-compliance, or of Franchisor's right to demand full compliance, with Franchisor's pre-opening requirements or any other provision of this Agreement. Franchisor will have no liability to Franchisee for the Resort's construction or renovation. It is Franchisee's responsibility to make sure that the Resort complies with the System Standards, Applicable Law, and permit requirements.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to the 2025 Camp Margaritaville Franchise Disclosure Document, Section 2.10 of the franchise agreement, titled "Franchisor's Pre-Opening Obligations," outlines the franchisor's responsibilities before the resort opens. Specifically, Camp Margaritaville agrees to use commercially reasonable efforts in reviewing and approving the franchisee's design plans. This also includes approving the opening of the resort under the Camp Margaritaville Intellectual Property. To achieve this, Camp Margaritaville will make a reasonable number of visits to the site and offer guidance and advice related to the resort's development or conversion.
However, the FDD clarifies that Camp Margaritaville's review and approval of design plans, along with any construction, design, architectural, planning, or related services, are solely intended to ensure compliance with the franchisor's pre-opening requirements. The franchisor's determination that a franchisee has met all pre-opening requirements does not constitute a guarantee that the resort complies with all applicable laws. It also does not waive the franchisee's non-compliance or the franchisor's right to demand full compliance with pre-opening requirements or any other provision of the agreement.
Furthermore, the franchise agreement stipulates that Camp Margaritaville bears no liability to the franchisee for the resort's construction or renovation. The franchisee is ultimately responsible for ensuring that the resort adheres to System Standards, Applicable Law, and permit requirements. This allocation of responsibility is typical in franchising, where the franchisee usually manages the construction and compliance aspects while the franchisor provides guidance and brand oversight.