Which sections of the Camp Margaritaville Franchise Agreement and Dwellings Rider outline the insurance requirements for franchisees?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
ch consent or approval shall be provided if the third-party system can be connected to Franchisor's systems and passes Franchisor's security risk assessment.
- (c) Franchisee's use of the CRS to connect to, interface with, or otherwise use third-party OTAs, booking systems, online travel agencies, and advertising platforms shall be at no additional fees, charges, or costs to Franchisee other than: (i) those Franchisee would incur directly usin
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 45–46)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, Section 10.05(c) is added to the Franchise Agreement and outlines the insurance requirements for franchisees. This section states that during the term of the agreement, the franchisee must obtain and maintain insurance coverage, deductibles, limits, carrier ratings, and policy obligations as required by the Margaritaville Standards. Such insurance may include All Risk property damage insurance for the FF&E in the Dwellings and professional liability insurance with a minimum of $10,000,000 per occurrence.
This means that as a Camp Margaritaville franchisee, you are responsible for securing and maintaining specific insurance policies throughout the duration of your franchise agreement. These policies must meet the standards set by Camp Margaritaville, which include particular coverages, deductibles, limits, and carrier ratings. The insurance may cover property damage to furniture, fixtures, and equipment (FF&E) in the dwellings, as well as professional liability insurance with a minimum coverage of $10,000,000 per occurrence.
The inclusion of these insurance requirements is a standard practice in franchising to protect both the franchisee and franchisor from potential liabilities and financial losses. Franchisees should carefully review the Margaritaville Standards to understand the specific insurance requirements and ensure they obtain adequate coverage. Failure to maintain the required insurance could result in a breach of the franchise agreement.
Prospective franchisees should consult with an insurance professional to determine the appropriate level of coverage and to ensure compliance with Camp Margaritaville's requirements. Understanding these insurance obligations is crucial for managing risk and protecting your investment in the Camp Margaritaville franchise.